Tata bosses look for policy support

Dave Nicol, Tata Steel works manager announces the cuts with George Dunning, leader of Redcar & Cleveland Council

TATA bosses are looking to the Government for a more supportive energy policy after the shock jobs axe last week.

At the centre of their discussions will be the controversial carbon price floor which will effectively increase the amount of money electricity generators have to pay for their carbon emissions from 2013.

The CPF has sparked widespread criticism from power-hungry manufacturers claiming it will ramp up their energy bills by a fifth.

Tata bosses have already met with senior ministers to lobby against the move but the Government has shown little sign of performing a U-turn, claiming the CPF will help Britain meet challenging emissions targets.

Dave Nicol, Tata Steel works manager, said: “You mention the carbon price and that’s one reason, but it’s not the only factor.

“As well as the market recovery being slow we have also got higher prices for raw materials.

“We have been through a review of our business because our markets have not recovered as well as expected.”

The CPF will start at £16 a tonne in 2013 and rise to £30 by 2020.

It comes on top of other levies imposed by the European Union.

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