News

Packaging industry champion Eric Illsley MP is calling for government action to prevent job losses in the packaging industry as a result of soaring energy prices.

Illsley, chairman of the All Party Packaging Group, has tabled an early day motion, supported by the British Glass Manufacturers' Confederation, which says the rising cost of gas and electricity is jeopardising the competitiveness of the UK's energy intensive manufacturing industries.

As most forms of packaging originate from these industries, few packaging companies will be immune from the effects of rising costs.

British Glass director general David Workman said: "For a typical glass manufacturer, energy costs for this year have risen by more than 50% compared with 2007, and by more than 130% since 2004. If that company were to contract now for energy in 2009, it would face a further increase of 53%.

"UK manufacturers are paying a price premium both for gas and electricity over their European neighbours which is likely to widen in 2009."

When energy costs spiked over 2005/6 it is estimated that 100,000 manufacturing jobs were lost in the UK. Current and future energy costs are much higher now and with other costs also rising fast, it is estimated that over the next two years up to 450,000 manufacturing jobs could go.

"High energy prices are affecting everyone and unless the situation changes we are staring down the barrel of major job losses and factory closures, because we are simply uncompetitive," said Illsley.

"The government should act quickly to take action to reduce energy prices."