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Industry campaigns against subsidies

Fifteen organisations in the UK construction industry are campaigning against current government policy on bio-mass subsidies.

A letter, “Unintended consequences of Current Energy Policy”, has been sent to Chris Huhne, MP, Secretary of State for Energy and Climate Change.

In essence, the campaign, headed up by OSB producer Norbord, but also covering trade associations and housebuilders, claims that biomass subsidies – available to electricity generators through the Renewables Obligation (RO) policy – will have a negative impact on the wood panel industry and other wood processors.

The message is that there is not enough wood available in the UK to support the scale of biomass electricity plants being processed for development, which will mean more imports.

Norbord managing director Karl Morris said that the campaign wants the government to show “some joined-up thinking”.

“We are aiming for a level-playing field with other industries in terms of subsidies, and hoping that the message is beginning to get through.”

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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