Apr 23 2009
The BPF's recent lobbying work has borne fruit in the 2009 Budget. Following BPF communications directly to Chancellor Alistair Darling and BERR Minister Ian Pearson the Budget incorporates the BPF's recommendation that CCA's based on electricity only be introduced. Peter Davis, BPF Director-General says 'This gives the BPF's attempts to secure a CCA for plastics processing a second chance and the BPF is now in a good position to resume discussions with DECC and the EU.'
Also directly attributable to BPF lobbying was a freeze on the Climate Change Levy Rate and the 40% increase in capital expenditure allowances, both of which were key points in a letter sent to the Chancellor on February 18th by the BPF and 12 other manufacturing associations.
The plastics sector will further benefit from the car scrappage scheme which should create some improvement in the market and the measures to boost the housing market.
Plastics are low carbon materials produced by a low carbon industry and should be major beneficiaries of the variety of measures to stimulate energy efficiencies. BPF will be fighting to secure a fair share of the strategic financial support for emerging technologies. 'Plastics has the potential to fulfil the criteria for 'advanced green manufacturing and will play a pivotal role in assisting the transition of the UK economy to one centered on high-tech production' says Davis.
However the BPF felt that the Chancellor should have done much more to put the government's own house in order. The £9 billion in efficiency savings set against total government expenditure is relatively small. At the very least a freeze on public sector recruitment on new positions should be introduced and vacancies should not be filled except for front line jobs such as firefighters and nurses. The highly controversial subject of public sector pensions is still a thorn that needs to be grasped.
Obtaining Credit Insurance is a serious problem for many plastics companies. The BPF feels immediate action is needed and we do not see this in the Chancellor's statement.