NORTH EAST MEP SLAMS BUSINESS SECRETARY OVER FAILURE TO RESPOND ON CORUS CARBON CREDITS (Fiona Hall MEP)

Fiona Hall MEP <info@fionahall.org.uk>

NORTH EAST MEP SLAMS BUSINESS SECRETARY OVER FAILURE TO RESPOND ON CORUS CARBON CREDITS

April 6, 2010 12:00 AM

A North East MEP has reacted with anger over a government minister's failure to provide important answers on the future of the Corus Teesside Cast Products (TCP) plant in Redcar.

Liberal Democrat MEP for the North East, Fiona Hall, first wrote to Lord Mandelson in December last year to ask for clarification on what would happen to EU carbon allowances in the case of the then threatened mothballing of the plant. Corus subsequently went ahead with the partial mothballing in February this year.

The TCP site in Redcar receives seven million carbon credits for free each year under the EU Carbon Emission Trading (CET) allowance system. As the plant has only been partially mothballed, it is believed Corus will continue to receive its free carbon permits in 2010 and possibly for the period until 2012, unless the regulator considers the mothballing as a permanent closure. If sold on the open market, these surplus carbon permits received by the TCP plant are worth millions of pounds.

Said Fiona:

"I really do think the Government needs to clarify what is happening to the Corus TCP carbon credits. People on Teesside deserve to know what is going on behind the scenes particularly because the carbon credits issue might influence the search for a potential buyer.

"I first wrote to Lord Mandelson about this issue last December and again this month. I have yet to receive a reply."

Added Ian Swales, prospective Lib Dem MP for Redcar:

"This complete lack of communication from a senior government minister only adds insult to injury. We are facing a serious crisis on Teesside because of the partial mothballing of Corus in Redcar, and Lord Mandelson can't even be bothered to respond to legitimate concerns repeatedly raised with him by a Member of the European Parliament.

"I wonder whether the Government has something to hide on this issue or whether it simply doesn't care about this crisis on Teesside. It is time Lord Mandelson came forward with some answers."

The controversy around the plant's carbon credits comes amid news that Corus confirmed it is open to dialogue for strategic tie-ups with financially-sound investors in order to rescue the plant.