Reducing Costs for Businesses

Marie Rimmer Excerpts

Tuesday 11th January 2022 Commons Chamber

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

St Helens has been at the heart of the global glass industry for over 200 years and is, in fact, known as the world leader in glass. Glass is part of the past, present and future of our town. In fact, that security glass up there in the Chamber was produced in St Helens and erected by men—as it was at the time—from St Helens.

Pilkington glass, or Pilks to us locals, is a business that is part of our furniture. Pilks is a business that is close to my heart, as I spent a lot of years working there. Energy bills for Pilks and other energy-intensive businesses have skyrocketed. There are numbers and variances that the business can cope with—the Minister referred to that as a hedging strategy.

In April 2020, during the first lockdown, Pilks’ energy bills were £540,000 a month—just over half a million pounds. The average before the energy surge was around £1 million a month. These are acceptable business variances—a hedging strategy—yet in autumn last year, the price surged to £3.6 million a month. At that point, the industry asked for help from the Government and met the Department for Business, Energy and Industrial Strategy. No support was given and there was no response. In December, the price surged to £5.4 million. The industry again asked for support. Once again, there was no support and no response. This is about not just Pilkington, but heavy industry.

As if the prices were not bad enough, Pilkington’s energy bills have now hit £8.2 million a month from an average of £600,000 a month. That is more than eight times higher than what they are used to paying. That is an unsustainable situation for Pilkington and its supply chain and for other heavy industry, not just gas production.

The Government need to support British glass and heavy industry. Glass customers are now looking to Europe for their glass—one of Pilkington’s largest customers is looking to Europe. It cannot compete. Why? Yes, energy prices are surging there, but the Governments there are working in partnership to share the burden with glass and other heavy industries. They are helping them when they need it—it is called partnership working. That is what partnership is about—not just gloating when things are going right but being there to help at times of heavy demand like this. Last year St Helens Council in the Liverpool city region awarded funding to pursue the Glass Futures project, which would provide research and development to revolutionise the global glass industry. Yes, this Government were involved in that. Glass is one of the most—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

[Ms Rimmer]

I am sorry, Madam Deputy Speaker. We need help and we need help now.