Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 3rd April 2014 Commons Chamber

[Margot James (Stourbridge) (Con)]

5. What assessment he has made of the effect of energy policies on energy-intensive industries.

[Nic Dakin (Scunthorpe) (Lab)]

8. What steps he has taken to support energy-intensive industries.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

We recognise the competitiveness concerns of electricity-intensive industries, which is why the recent Budget included new compensation for the costs of the renewables obligation and feed-in tariffs, and capped the carbon price support mechanism. We are also providing compensation for the costs of the European Union emissions trading scheme, and to date we have paid out £31 million to 53 companies.

[Michael Fallon]

I am grateful to my hon. Friend for her question. By 2018-19, British business will have saved some £4 billion from the measures we have put in place. We have cut green taxes for households and now we are cutting green taxes for business. That should be a further incentive for the chemical industry not only to grow in this country, but to bring further investment back to the UK.

[Nic Dakin]

Will the Minister take this opportunity to guarantee to energy-intensive industries that the compensation for the carbon floor tax that this Government introduced will be backdated to the date from which the Government have promised compensation, which is April 2013?

[Michael Fallon]

Carbon price floor compensation is something that we are still pursuing with the Commission in Brussels. I am hopeful that that will be agreed soon. The state aid clearance procedures are lengthy in these cases. Obviously, we are continuing to press the case for backdating.