ExxonMobil: Mossmorran Debate
Full Debate: Read Full DebateJohn Cooper
Main Page: John Cooper (Conservative - Dumfries and Galloway)Department Debates - View all John Cooper's debates with the Department for Business and Trade
(1 day, 12 hours ago)
Commons Chamber
Chris McDonald
I thank my hon. Friend for raising those two issues. I raised the issue of redundancy packages with the company earlier, and it assured me that such packages had been made available. I then raised the same question with Unite the union, and it has undertaken to go away and confirm that for me—I want to do my own due diligence and make sure that is true.
I am particularly pleased that my hon. Friend raised the issue of contract workers. It was reported that they were locked out of the site, but the actual situation is slightly more complex. Contract workers had their permits revoked this morning, which I realise sounds rather dramatic, but for a COMAH—control of major accident hazards—site, that is a normal procedure in certain circumstances. In fact, the workers themselves believed it was due to weather conditions this morning. It was actually to ensure that all workers on the site—either direct employees or contract workers through their contract managers—could be briefed at the same time on the issue. Contract workers were then allowed to return home or to resume work, recognising that not all of them would want to stay on the site at that time, having received such shocking news. Hopefully, that helps to explain the situation. Of course, I will ensure that I continue to ask these questions of the company and engage closely with both Unite and GMB on these issues.
John Cooper (Dumfries and Galloway) (Con)
On the Business and Trade Committee, we hear all the time that energy costs in this country are unaffordable, and it puts industry of every kind at a disadvantage. We are seeing the results of that today. The other issue is the perverse carbon border adjustment mechanism, which actually makes imports of ethylene cheaper. The Minister referred to imports. Is it not the case that we need to look at all these policies in the round? We are crippling British industry.
Chris McDonald
I am committed to looking at the entire business environment for our-energy intensive industries—our heavy industry—because I want to improve the competitiveness. Perhaps I have an ally across the House who might help to point out areas that we could look at; I would certainly welcome that in the future.
I can perhaps provide a bit more detail on the two issues the hon. Gentleman raised: energy costs and the CBAM. On electricity costs, which are not the major factor for this site, the Government have introduced a range of measures to try to improve the cost competitiveness of the UK versus Europe, and we could talk about those in more detail at some other point. On gas, the UK is competitive with Europe; it is certainly cheaper than Germany and the Czech Republic, and it is slightly more expensive than Italy and Spain. The issue here is fundamentally the cost of gas in the USA, which is considerably cheaper, and we all understand why that is.
The CBAM issue is a bit more complex, because 100% of the material goes into the EU, so there is an issue around EU market alignment. Again, we could talk through that in more detail, but it means it is not quite as straightforward as if a domestic producer were asking for some relief from measures.