Cementing the Future

What is ‘Cementing the Future’ all about and why are you publishing it now?

This is an important document for the cement industry at a pivotal time for our country’s economic growth plans. A substantial part of the government’s growth strategy is predicated on stimulating construction activity around infrastructure, housing and building a low carbon economy. Cement is a critical constituent of concrete, the most widely consumed man made substance on the planet, and essential for many of the planned projects that will not only make a difference to our economy but also our society and everyday life.

‘Cementing the Future’ sets out to explain the importance of cement and concrete and draws attention to the vulnerability of the industry to overseas competition unless the government acts to create a level playing field in terms of cost of regulation and unilateral ‘green taxes’ that overseas competitors do not face.

As we head into the Party Conferences it is vital that politicians of all colours understand the challenges that face this essential, but unsung industry. All parties want to see more construction and the jobs it brings with it, but the buildings can only go up, or be repaired or improved if we have the materials to do it with. MPAand its members will be taking this message to the party conferences because it is local projects in individual constituencies that we want to continue to supply with locally sourced materials.

Is the threat really that serious?

Absolutely! Before the economic crisis the industry was producing in the region of 12 million tonnes of cement a year. In 2012 this was just 8 million tonnes. At the same time imports were increasing and costs just keep going up: energy costs, ‘green’ taxes and charges such as the Climate Change Levy, European emissions trading costs, the cost of implementing regulations, and now we are looking down the barrel of a gun on the Carbon Price Floor and Contracts for Difference. Cement is an internationally traded commodity and if it costs more to make it here than it does to make elsewhere and ship it here then that is what is likely to happen. To be fair, the government has recognised this and has set out some measures to ease the burden, but these haven’t been implemented yet or approved in Brussels and we have no guarantees that they will. We simply cannot gamble with the future of such a strategically critical industry.

So what are you asking the Government for and what are you offering in return?
‘Cementing the Future’ calls on the government to: recognise the industry’s strategic significance and potential to generate economic growth; acknowledge the industry’s role in delivering a low-carbon future for the UK; deliver an economic climate of investment security and reduce regulatory uncertainty in the industry; reduce the cumulative cost burden on the industry; and, lift unilateral green taxes. In return, the industry will deliver: a secure supply of quality assured cement made in the UK; commitment to the UK government’s infrastructure and built environment programme; continued investment in the future of a healthy domestic cement industry; sustained employment at our network of UK cement plants and the supporting supply chain; and, a planned reduction of 81% in greenhouse gases as detailed in our Carbon Roadmap to 2050.

What is your final message to Government?

The UK cement industry has provided an essential material for the built environment for over 100 years. Working with government, we can continue to make a vital contribution to development and cement the future of an essential British industry with locally supplied products, but we need help.