Climate levy could spell plant closure for the paper industry
15 Jan 2000
The pulp and paper industry has joined the attack on the government's proposals for an energy tax. According to the Paper Federation, the current proposals would cost the industry up to £100million per year, and could force some mills to close. The federation favours a fiscally-neutral tax with 100 per cent exemption for combined heat and power (CHP) users.
The costs are equivalent to half the industry's total profits last year, claims Chris Blunt, chairman of the Paper Federation's energy committee. Energy use represents some 10-40 per cent of manufacturing costs in the paper industry, and without rebates, the tax would increase energy costs by up to 40 per cent.
