September 20, 2024

Brexiteer MP Jonathan Gullis wants energy-hit pottery firms to be given same help as EU rivals

Jonathan Gullis #JonathanGullis

A Stoke-on-Trent MP has warned that Stoke-on-Trent ceramics jobs could be at risk due to ‘crippling energy bills’ and foreign competitors getting more support from their governments. Jonathan Gullis, a strong supporter of Brexit, is calling on the government to provide ceramic manufacturers with a similar level of help as that received by European businesses.

The Stoke-on-Trent North MP led a House of Commons debate on the cost of energy and its impact on the ceramic sector, saying that wholesale gas prices were currently four times the level they were a year ago. Mr Gullis welcomed the continuation of the scheme giving businesses discounts on their energy bills for another 12 months from April.

But he said ceramic firms would still struggle to compete against European manufacturers benefiting from ‘far more generous support packages’, as well as ‘cheap-labour countries’ like China.

READ: Ceramics leaders hit out at minister’s jibe at ‘failing and unproductive firms’

Mr Gullis said: “I welcome that the new scheme from April seems to include UK ceramics manufacturing, but overall it is still going to have a significant impact on manufactures’ overheads and thus competitiveness. In places such as Spain and Italy, which is a major competitor country on ceramics, their major ceramics businesses are being underwritten and helped to cope with energy costs. UK ceramics also struggle to compete with German competitors, which have electricity rates that are 38 per cent lower.

“For UK ceramics manufacturers to be most competitive, we need a level of support similar to that for, or at parity with, European businesses. This will ensure that the ceramics industry, the jewel in the crown of our great country’s manufacturing, is able to prosper well into the future.

Jonathan Gullis in the House of Commons

“One way we could do this is to consider getting rid of regulations in order to make it easier for UK ceramics manufacturing sites to be regenerated. We could thereby drastically improve the short and long-term prospects of UK ceramics.

“Furthermore, we can point to other manufacturing industries such as textiles and plastics that are also struggling. If we cannot and do not support these industries, the UK will be far less competitive and, crucially, it will deter foreign investment. This puts skilled jobs at risk, not just in Stoke-on-Trent but throughout the country.”

Mr Gullis also called on the government to provide direct research funding to help the ceramic industry develop green technologies such as hydrogen fuel in order to achieve net zero by 2050.

He added: “The purpose of this debate was to highlight, on the floor of the House, the impact of the cost of energy on our great ceramics sector. It is impossible to overstate its centrality, at both local and national level, to communities such as Stoke-on-Trent North, Kidsgrove and Talke. I therefore implore the Minister to demonstrate that the Government remain steadfast in their support for the sector and those who work in it. As I have said, they are a fundamental element of Stoke-on-Trent’s economy, its jobs and its heritage.

“This is one of our great country’s last great assets, and it is of paramount importance that we support it.”

During the debate, Stoke-on-Trent South MP Jack Brereton pointed out that 97 per cent of ceramic businesses are small or medium enterprises, and so the sector needed a ‘dedicated pot of funding’ from the government to help it become more energy efficient.

Nusrat Ghani, minister for industry and investment security, said the government had provided households and businesses with billions of pounds of support, and gave assurances that ‘we want to keep the kilns firing as well’.

She explained that under the forthcoming energy bill discount scheme, businesses in energy-intensive industries would be able to apply for a higher level of support, with talks taking place over the details of how this will work.

Ms Ghani also said the government had asked Ofgem to look at concerns that energy suppliers are not passing on cost savings to costumers in the ceramic industry.

She added: “It is incredibly important that we support the ceramics sector, which is important to so many jobs up and down the country. We do not want it to fail because of cheap Chinese imports. We know the sector faces challenges, and we will do everything we can to support it to rebuild and to unlock its potential for clean technologies that drive the green transition.”

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