Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 13 March 2024 to Question 17476 on INEOS: Belgium, what assessment her Department has made of the potential impact of new business outside the UK on (a) sites and (b) industries in the UK.
Answered by Greg Hands
I refer the Honourable Member to the response provided to Question 19719 on 25 March.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 25 March 2024 to Question 19719 on INEOS: Belgium, whether her Department made an assessment of the potential impact of that guarantee on existing and competitor refineries in the UK.
Answered by Greg Hands
UK Export Finance conducted its customary due diligence in line with its policies and obligations to inform its decision-making about supporting Project One. This included consideration of environmental, social and climate change risks and impacts, but did not include an assessment of the type specified in the question.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 25 March 2024 to Question 19719 on INEOS: Belgium, what estimate she has made of the number of jobs that will be created as a result of that guarantee.
Answered by Greg Hands
The Department for Business and Trade cannot provide a specific number of jobs supported. As advised in the response to UIN 19719, UK Export Finance's guarantee to commercial lenders will help secure new export opportunities for the UK that would not otherwise have happened, in turn supporting jobs across the UK, both in those businesses with which INEoS contracts direcfly, and in their supply chain.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, how much her Department has paid by way of financial assistance under section 8 of the Industrial Development Act 1982 in (a) England, (b) Scotland, (c) Wales and (d) Northern Ireland in (i) 2018-2019, (ii) 2019-2020, (iii) 2020-2021, (iv) 2021-2022 and (v) 2022-2023 financial year.
Answered by Kevin Hollinrake - Shadow Minister without Portfolio
We are unable to provide a breakdown in the manner requested as the data is not held in that format. However, full details of financial assistance provided under the Act are published annually in the Industrial Development Act annual report, copies of which are available in the House libraries.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what (a) criteria and (b) assessment process was used to determine the award of up to £75 million to BMW made under section 8 of the Industrial Development Act 1982.
Answered by Kevin Hollinrake - Shadow Minister without Portfolio
The award to BMW met the following criteria;
The assessment process followed HM Treasury Green Book Appraisal Guidance including detailed due diligence conducted by an independent third party. The assessment process also included scrutiny by the Industrial Development Advisory Board.
The award to BMW supports a total investment of £575m by the company and will secure production of new electric models of the Mini at the plant in Oxford.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether the Scottish Government has made a formal request for the transfer of the (a) powers and (b) associated budget to provide financial assistance to industry under section 8 of the Industrial Development Act 1982 to the Scottish Parliament.
Answered by Nusrat Ghani
The power under s.8 so far as it is exercisable in or as regards Scotland, was transferred to Scottish Ministers by section 53 of the Scotland Act 1998, effective from 01/07/99. As such, no formal request for transfer of powers or associated budget is required. The power remains exercisable in Scotland by the UK Secretary of State by virtue of section 56(1)(h) of the 1998 Act; and can also be exercised concurrently by the Secretary of State and Scottish Ministers in relation to financial assistance for shipping services carrying passengers between the Highlands and Islands and Northern Ireland by virtue of S.I. 2002/1630(S. 6).
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, how much her Department has paid by way of financial assistance under section 8 of the Industrial Development Act 1982 in compensation for indirect costs associated with the (a) UK Emissions Trading System and (b) Carbon Emissions Tax and Carbon Price Support mechanism to (i) British Steel Ltd, (ii) Celsa Manufacturing UK Ltd, (iii) CF Fertilisers UK Ltd, (iv) DS Smith Paper Ltd, (v) Kimberly Clark Ltd, (vi) Outokumpu Stainless Ltd, (vii) Palm Paper Ltd, (viii) Runcorn MCP Ltd, (ix) SABIC UK Petrochemicals Ltd, (x) Tata Steel UK Ltd and (xi) UPM-Kymmene UK Ltd in each year since January 2021.
Answered by Nusrat Ghani
The total compensation these companies have received for indirect costs of the (a) UK Emissions Trading System and (b) Carbon Emissions Tax and Carbon Price Support mechanism is as follows: (i) Jan-2021 to March-2022: £165,174,750, (ii) April-2022 to March-2023: £ 114,934,773, (iii) April-2023 to present: £100,952,928.
We are unable to provide the spending for individual companies or under section 8 alone as this would lead to commercially sensitive information being released.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, how much her Department has paid by way of financial assistance under section 8 of the Industrial Development Act n982 in compensation for indirect costs of the (a) UK Emissions Trading System and (b) Carbon Emissions Tax and Carbon Price Support mechanism to (i) INEOS Chemical Grangemouth Ltd and (ii) INEOS ChlorVinyls Ltd in each year since January 2021.
Answered by Nusrat Ghani
The total compensation these companies have received for indirect costs of the (a) UK Emissions Trading System and (b) Carbon Emissions Tax and Carbon Price Support mechanism is as follows: (i) Jan-2021 to March-2022: £165,174,750, (ii) April-2022 to March-2023: £ 114,934,773, (iii) April-2023 to present: £100,952,928.
We are unable to provide the spending for individual companies or under section 8 alone as this would lead to commercially sensitive information being released.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 13 March 2024 to Question 17476 on INEOS: Belgium, what exports that funding will support.
Answered by Greg Hands
UK Export Finance (UKEF) does not provide direct funding. It issued a guarantee to commercial lenders to help secure new export opportunities for the UK.
UKEF’s support is conditional on the inclusion of UK goods and services in the project and therefore secures export opportunities that might not otherwise have happened, both from businesses directly contracted by INEOS, and others in their supply chains.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 13 March to Question 17476 on INEOS: Belgium, how many jobs will be created as a result of the funding.
Answered by Greg Hands
UK Export Finance (UKEF) does not provide direct funding. It issued a guarantee to commercial lenders to help secure new export opportunities for the UK, which in turn support jobs across the UK, both in those businesses with which INEOS contracts directly, and in their supply chains.
In 2022-23, UKEF provided £6.5 billion of support in total, which is estimated to have backed up to 55,000 jobs across the UK.