Two trade unions have denounced the Government’s decision to not back the UK’s largest bioethanol producer, Vivergo Fuels, as its owner announces its closure. The Government have argued financially backing the plant “would not provide value for the taxpayer.”
The closure of the plant has been announced after months of business leaders and politicians’ efforts in campaigning for the Government to step in and save the UK’s bioethanol industry. The industry has been impacted by the US-UK trade deal which saw the 19 per cent tariff on US ethanol imports removed. Domestic firms, such as Vivergo and Ensus in Redcar, warned that without the tariff they would be forced to close.
The efforts however, proved fruitless as the Government announced they would not be backing the firms. A Government spokesperson said: “This Government will always take decisions in the national interest. That’s why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace.
“We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces. We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process. We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.”
Following the Government’s announcement, Vivergo’s owners ABF have announced a closure process which will see the plant having ceased all production of bioethanol and animal feed by August 31. In a statement ABF said: “The Government has decided not to offer either short-term financial support or the long-term regulatory certainty we sought.”
The news has been described as “a massive blow to Hull and the Humber” by Vivergo’s Managing Director, Ben Hackett. Mr Hackett added: “We did everything we possibly could to avoid closure, but in the end it was the Government that decided the British bioethanol sector was something that could be traded away with little regard for the impact it would have on ordinary hard-working people. We did not go down without a fight and I hope that the noise we generated over the past three months will make the Government think twice before it decides to sign away whole industries as part of future trade negotiations.”
The GMB Trade Union’s Charlotte Brumpton-Childs said: “This is the impact of tariffs and trade deals: working people losing their livelihoods. They’re not numbers in a spreadsheet. These are lives put on hold and communities potentially devastated.
“Commitment to green policy must mean commitment to green jobs. A clean energy industrial strategy means nothing if we cannot protects plants long enough to deliver clean energy jobs here in the UK.”
Also commenting on the Government’s decision to not back the domestic firms, Unite the Union general secretary Sharon Graham said: “This is a short-sighted decision that totally disregards the benefits the domestic bioethanol sector will bring to jobs and energy security. Once again, the Government total lack of a plan to support oil and gas workers as the industry transitions is glaring.”
By: Andrew Spence, LDRS
