Michelin Factory: Ballymena

Baroness Ritchie of Downpatrick Excerpts

Tuesday 17th November 2015 Commons Chamber

[Ian Paisley]

Shorts Bombardier is a case apart because of its scale and the amount of money it has to invest. Michelin, a plc, invested in two huge wind turbines to reduce its energy costs, but although they saved the company between £100,000 and £150,000, that was nowhere near sufficient to cut its electricity costs.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Member for North Antrim (Ian Paisley) on obtaining this debate on an important subject for his constituency. Can he confirm the nature of the meetings and lobbying that took place between Ministers in the Northern Ireland Executive and the then Secretary of State for Business, Innovation and Skills and his Ministers on this subject?

[Ian Paisley]

The hon. Lady has read my mind. On 25 November 2013, the Secretary of State for Northern Ireland, the right hon. Member for Chipping Barnet (Mrs Villiers) visited the plant at my invitation. She met the plant owners and recognised the huge issue of electricity costs. The suggestion made at that meeting was that because Michelin has plants in Scotland and England, as well as Northern Ireland, a united front was needed from the Scottish Secretary, the Northern Ireland Secretary and the Business Secretary to ensure that some special pricing code was put in place to assist the company. I put that point in writing to the company, saying that

“we should make a very direct approach at Cabinet level with the help of the Secretary of State and our own Minister of Enterprise, Trade and Investment along with other Michelin Plants in the United Kingdom for a special case for a high energy user like Michelin to have some sort of special status when it comes to the cost of energy use.”

I am glad to say there was a response from central Government: the Energy Intensive Industries initiative, which the Prime Minister introduced a short while ago. In an answer to a question put by my right hon. Friend the Member for Belfast North (Mr Dodds) in Prime Minister’s Question Time just last week, the Prime Minister indicated that EII is something companies such as Michelin should look at. I seized on EII some time ago. I wish the Prime Minister had not used that argument, because Michelin, by its structure, is actually excluded from benefiting from EII. EII is framed so narrowly that one of the single largest energy users is actually excluded from using it.

Michelin has explained to me in some detail that it would have to go away and re-establish itself as a company, and go through a lot of red tape, to have a chance of qualifying for EII. That would be quite difficult. I think the Minister would accept that the legal due diligence alone for a plc would be costly and put it out of remit.