The BBC this week reported on calls by Karl Koehler, head of Tata Steel’s operations in Europe, for the government to help heavy industries deal with the burden of energy costs.
The businessman said government ministers needed to support businesses that form the “foundation industries” – including chemicals and metal based manufacturers.
Koehler quoted a report by PricewaterhouseCoopers (PwC), claiming these companies had nearly half a million UK employees and accounted for 30% of export and imports, as well as “forming a key part in any rebalancing strategy for the economy”.
Koehler’s call for the creation of a ministerial Whitehall position to represent the foundation industries was rejected by business secretary Vince Cable. Cable, who was at the event where Kohler made his comments, said he was fully focused on the needs of heavy industries, and said a specific minister for the sector would be “tokenism”.
Unite assistant general secretary Tony Burke said: “There is momentum building for a minister to champion manufacturing industries and we welcome Tata’s recognition of the need for urgent action to support growth and the need to rebalance the economy.
“The UK needs an interventionist manufacturing strategy with direction and substance. We need an economy built on decent jobs with manufacturing at its heart. Having a minister for manufacturing, with a seat in the cabinet, to facilitate manufacturing growth in the UK would be a major step forward.”
If, as the Tata Steel boss claims, heavy industries are sometimes subject to energy bills 50% higher than their European competitors, Mr Kohler’s request may well be justified.
