Chemicals tycoon Jim Ratcliffe warned today that up to 10 million jobs could be lost in the next decade as he lashed out at green taxes that have left the industry in ‘a mess’.
Sir Jim, the billionaire co-owner of Premiership side Manchester United, hit out at carbon taxes and accused Labour of deliberately running down the oil and gas industry in the North Sea.
The Ineos founder also hit out at the lack of support from Energy Secretary Ed Miliband for facilities including its Grangemouth refinery in Scotland, which closed earlier this year with the loss of 400 jobs.
This week Ineos announced it will also cut a fifth of jobs at a plant in Hull, East Yorkshire, blaming ‘dirt-cheap’ imports from China and high energy costs.
Some 60 jobs will go at the Ineos Acetyls site, which makes petrochemical products such as acetic acid, with more roles across the industry at risk without government intervention.
In punchy comments to the Times’s The Business podcast, Sir Jim warned that green levies were ‘unsustainable’ and helping to make Europe ‘by far and away the worst, most difficult place for chemicals’.
‘That’s a lot of employment, which could go in the next 10 years, a million jobs,’ he said.
‘A million direct jobs and probably you multiply that by 10 if you look at all the indirects that are related in terms of services.
‘So it’s probably 10 million jobs in Europe and three quarters of a trillion in value.’
He also said he will hold talks with Reform leader and fellow green energy sceptic Nigel Farage before Christmas, though he distanced himself from financially backing the party.
Sir Jim warned that businesses were fleeing the North Sea due to the high taxes being levied.
‘The taxes now are 80 per cent and they’re not giving any new licenses out,’ he said.
‘That’s a policy of closure of the North Sea, really, which is a great shame because it’s a fabulous asset for the UK.
‘There’s still lots of oil gas left, but everyone’s running away.’
Ineos has called on the UK government and European Commission to launch their own tariffs in an effort to stop China from undercutting local competitors with stronger environmental credentials.
It claimed that many competitor products from China are made using coal and emit up to eight times more CO2 than Ineos’s UK operations.
The firm warned that ‘more sites will close and thousands more jobs will be lost’ across the chemical industry unless action is taken.
On Monday, Ineos revealed plans to shut two plants in Germany due to high chemical sector costs in the EU.
On his meeting with Mr Farage, the businessman said the reform leader asked for it. Pointing out he had also met with Tory leader Kemi Badenoch he added: ‘I’ve always been neutral on political parties.
‘I’ve never really had a preference one way or another. I just want one that runs the country well. I can’t see myself paying for policies. It’s not my style.’
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