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Government "gambling with Siemens jobs"

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CITY MPs have raised concerns about Siemens' planned investment in Hull after the House of Commons rejected a carbon emissions target for the energy industry.

Tory backbencher Tim Yeo tried to amend the Government's Energy Bill to set a "decarbonisation" target for the power sector by 2030.

But MPs rejected the move – which was supported by energy giant Siemens – by 290 votes to 267 after a Commons debate.

Hull North MP Diana Johnson, who backed the 2030 target, accused the Government of "gambling" with jobs in Hull.

She said: "By voting against the targets that would have provided much-needed confidence that Siemens and other green investors say they want, the Government is gambling with the jobs that Hull so urgently needs.

"I'm still confident Hull can secure the Siemens jobs, but that's slightly different to being confident that Hull will secure the Siemens jobs."

If amended, the Energy Bill would have ensured that almost all electricity in the UK would have come from carbon-free sources such as wind and nuclear by 2030.

But Brigg and Goole MP Andrew Percy, who voted against the move, said he had not been prepared to set "an arbitrary target" on decarbonisation.

He said: "Given that thousands of people in my area work in the gas and coal industry, people who voted for the amendment were, in effect, saying they didn't care about their jobs.

"We don't know how much extra would have gone on people's energy bills as a result of adopting a target, and you'd have to be a fool to believe people's future payments should be mortgaged in that way."

Earlier in the House of Commons, Labour MP Barry Gardiner, a member of the Energy and Climate Change Select Committee, told MPs Siemens had warned that "if we wait until 2016 to set a decarbonisation target for 2030, it and many other competitors were likely to delay or cancel planned investment in the UK". He said: "If we ignore what industry is saying, we do so at our peril."

But ministers said the target would have placed too many restrictions on business at a time of economic difficulty.

Hull West and Hessle MP Alan Johnson, who also voted for a decarbonisation target, said it would have clarified "contradictory signals" from the Government and given investors such as Siemens "the confidence to proceed".

Hull East MP Karl Turner said a legally-binding 2030 target would have given companies like Siemens "the confidence to invest in green technology and in Hull".

He said: "Decarbonisation of the power sector is backed by hundreds of businesses, investors and NGOs. It is clear that an unambiguous commitment to green power production would have helped secure investment and jobs for the Humber region."

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