MPA responds to UK Steel industry debate
The steel crisis has highlighted the strategic importance of key energy intensive industries to the UK and the need for action to be taken to ensure competitiveness with other European and global suppliers.
The challenges of the steel industry are understandably the immediate focus of Government but policy makers in both the UK and Europe need to be aware that many energy intensive sectors share the same policy induced pressure which undermines their competitiveness.
The UK cement and lime industries are being severely hampered by policy induced costs, either directly or indirectly. Indirect policy costs are making energy costs uncompetitive and the Government’s record on compensation against these costs is patchy and inconsistent. The most significant direct regulatory threat to domestic cement and lime production and investment are associated with the future design of the EU Emissions Trading Scheme and recent UK Government proposals for this scheme would damage local production of cement and lime.
Government is recognising the importance of its policy decisions for the steel industry. However, it is essential for the future competitiveness of cement and lime production, and the local communities within which they operate, that immediate positive action is taken to support not only the steel industry but other key UK industries that are vulnerable to policy imposed costs.
The UK cement and lime industries are key elements of the supply chain for construction and many other industries. They are fully regulated in the UK and have high general operational and environmental standards. Policies and measures which had the effect of shifting supply overseas would provide no net environmental benefits, therefore sustainable UK industries are essential both economically and environmentally.
