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Finance (No. 3) Bill

I am not aware of Airbus's activity in detail, but I will support the hon. Gentleman's point later by saying that such industries have a role to play in our future, and that they are not just of the past. The hon. Member for Bristol East (Kerry McCarthy) has mentioned the comments of the head of Tata Steel. He also said:"““European steelmakers already face the prospect of deteriorating international competitiveness because of””" EU emissions costs. On the provision in the Bill, he added:"““This is an exceptionally unhelpful and potentially damaging measure.””" As well as steel, other large sectors are at risk—including chemicals; oil and gas; cement; aluminium; glass, bricks and ceramics; tyres; and paper. There could be more. Those are broadly the sectors that are most affected, but the EU has gone further and drawn up a list of 164 industrial sectors and sub-sectors that are deemed to be exposed to what it calls carbon leakage. That means that the EU recognises that the EU emissions trading scheme and other measures could disadvantage European companies that compete internationally. The sectors and sub-sectors that are judged to be at risk of carbon leakage are estimated to account for around a quarter of the total emissions covered by the EU emissions trading scheme, but for around 77% of the total emissions from EU manufacturing industry. The UK Government's proposing to add a further tax to those already in place is bound to have an effect. We have just witnessed fresh closures and 1,500 job losses from Tata in Scunthorpe and Teesside. I see a number of hon. Members in their places who are directly affected by that. Tata again mentioned UK energy prices as a factor in its recent decision, but in the fourth carbon budget statement, the Secretary of State for Energy and Climate Change said that"““we need to ensure that energy-intensive industries remain competitive and that we send a clear message that the UK is open for business.””—[Official Report, 17 May 2011; Vol. 528, c. 177.]" The announcement has been welcomed, but there is concern that, to date, there has been insufficient detailed consultation on, and impact assessment of, the proposals with respect to energy-intensive industries. Consequently, the fear is that the Government may underestimate the risk to those sectors.