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Siemens says 'Hull progress continues'

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ENERGY giant Siemens insists it is "continuing to progress" its plans for Green Port Hull despite the defeat of a carbon emissions target in the House of Commons.

The Government's Energy Bill passed its Third Reading with a majority of 388 on Tuesday night after an amendment to include a "decarbonisation" target by 2030 was voted down.

Siemens bosses had asked Humber MPs to support the clean power target amendment, suggesting any delay could be significant.

Michael Rolls, director of business development at Siemens, said in the letter: "If we wait until 2016 to get the certainty that would help us make a decision, particularly around the Hull investment, we would probably miss the boat."

Now, the German energy giant says it is awaiting "with interest the final passage of the Energy Bill through Parliament" while welcoming "ongoing efforts to secure greater long-term clarity beyond 2020".

A company spokesman said: "Siemens is continuing to progress its plans for Green Port Hull and its discussions with Government, customers and ABP."

The Government saw its majority cut to 23 as Liberal Democrat backbenchers led a rebellion to try to impose strict new carbon emissions targets on power companies.

Supporters said the target would help give energy companies like Siemens greater confidence in the Government's long-term commitment to renewable energy.

They had hoped to force through a series of amendments to the Energy Bill, tabled by Tim Yeo, chairman of the Commons Energy and Climate Change Committee, which would have forced the Government to impose the targets from April 1 next year.

Instead, the Government forced through the Bill without the changes, meaning ministers have until 2016 to decide what, if any, objectives they want to impose on energy suppliers to cut their carbon output by 2030.

Hull North MP Diana Johnson said the comments from Siemens showed "how much better it would have been if the Energy Bill vote in the Commons had gone the other way, in building the greater investor confidence that Siemens and others want.

"It's good that Siemens is keeping its options open and continuing its planning work in Hull.

"I urge them to continue doing so, while we work to obtain the clarity they seek over long-term green energy policy. Then we can finalise the deal to bring those jobs to Hull."

During the debate, Energy Minister Michael Fallon said setting a carbon-reduction target from next year would have led to higher bills for consumers and higher costs for businesses who were already struggling to compete against lower energy costs abroad.

The Energy Bill will now go to the House of Lords for further scrutiny by peers.

Siemens says 'Hull progress continues'


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