A SOMERSET MP has called on the Government to 'take control' of the gas industry crisis before it inflicts 'serious damage' on the economy.
Ian Liddell-Grainger, MP for Bridgwater and West Somerset, says ministers must act ‘within days rather than weeks’ to return stability to the sector and guarantee supplies not only of gas, but of fertiliser and CO2.
A huge hike in gas prices exacerbated by interruption to electricity supplies from France has led to many smaller suppliers facing extinction.
But apart from the domestic gas situation, the closure of two major fertiliser plants on Teesside and in Cheshire – in each case because of the current gas price – has led to agricultural suppliers facing a desperate shortage and cut supplies of CO2, a by-product of the manufacturing process which is used to make dry ice.
As a result, deliveries of frozen foods are beginning to be affected.
Mr Liddell-Grainger said few consumers could have known of the connection between farm fertilisers and frozen farm products, such as peas and beans.
“Now the complex inter-relationship of two apparently disparate sectors has been revealed, it’s no wonder consumers are starting to get nervous,” he said.
WARNING: Ian Liddell-grainger
“And since a fragmented gas industry already appears to be beset by impending business failures it is clearly the Government’s responsibility to step in and take charge.
“I am afraid this situation has revealed the fragility of certain areas of the economy which have been rather like an inverted pyramid balancing on the going rate for gas.
“Markets being what they are I am certain at least some of the price hikes we have seen recently will be reversed sooner or later. But the Government cannot afford the luxury of sitting back and waiting for it to happen.
“Farmers need fertilisers or we shall be facing the prospect of vastly lower yields and possibly food shortages. This all needs resolving within a matter of days rather than weeks."
The comments come as the chief executive of the Food and Drink Federation warned shoppers may notice more products missing from supermarket shelves “in about 10 days”.
Speaking on BBC Radio 4’s Today programme, Ian Wright described the potential shortages of CO2 supply as “a real crisis” and said “the just-in-time system which underpins both supermarkets and hospitality industry is under the most strain it has ever been in the 40 years it has been there”.
He said poultry production will begin to erode very seriously by the end of this week, with the same being true of pig production and the making of bakery goods.
Meat packaging is probably only about a week behind, he added.
He said: “We probably have about 10 days before this gets to the point where consumers, shoppers and diners notice that those products are not available.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel