Engineering association opposes energy taxes
15 Jan 2000
The proposed energy taxes will put UK engineering companies at a disadvantage to European competitors, the Engineering Employers' Federation has warned. The increased costs of the tax could lead to reductions in plant output or even plant closures, it claims.
The EFF repeats the assertion that, for industries with high energy usage but few employees, the government's rebate system will not be adequate. `For example,' it says, `one company estimated that the tax will cost an extra £1.6million, against which it can only offset £54,000 in National Insurance rebates.' The tax will also tip the competitive balance against UK industries, it adds: in Germany, large energy users receive a rebate of up to 90 per cent of the equivalent tax, whereas the UK proposals allow for a maximum rebate of some 50 per cent.
The federation also believes that the £50million the government is planning to set aside for energy efficiency measures will not be sufficient. `Only with significant assistance will companies be able to install extra energy conservation targets to help the government meet its Kyoto targets,' it comments.
