The leader of Hull City Council has called for the Business Secretary Jonathan Reynolds to intervene and save the Ƶ's largest bioethanol plant, which is said to support 4,000 jobs.
Vivergo Fuels said recently that unless the Government acted, it would be forced to close its Saltend plant - employing 160 directly - owing to the removal of a 19% tariff on US ethanol imports, which formed part of the recent Ƶ-US trade deal. The firm has said it was promised immediate Government help at a meeting more than a fortnight ago, but that it has not materialised.
Now Coun Mike Ross, the Liberal Democrat leader of Hull City Council, has said the factory - which has faced shutdowns in recent years - has been “sacrificed on the altar of a deal with Donald Trump.” Mr Ross said Vivergo is vital for jobs and the economy on the Humber, supporting jobs directly at the site and through its supply chain which includes farmers who provide the wheat used in production.
He said: "The Government needs to stand up for workers in Hull and our region. The Vivergo plant is vital for jobs and our economy, but has been left in the lurch, sacrificed on the altar of a deal with Donald Trump.
"Its closure would be a devastating blow to families, communities and businesses across our region – and would send entirely the wrong message about the Government’s commitment to clean growth, green jobs and investment in places like Hull.
"The Government promised to act within days, but so far it's been silent. They must salvage this plant from destruction by Trump. That's why I'm urging the Business Secretary to hold a summit with regional leaders, and our new mayor to help make that happen."
In a recent letter to farmer suppliers, Vivergo Fuels managing director Ben Hackett said: “Unfortunately, if there is no Government intervention in the next few weeks, our plant will have to close. That is because the Government has made a series of decisions that undercut Ƶ ethanol production in favour of US imports. The most recent trade deal was the final blow. If there is no Government intervention, we will not be able to purchase any more wheat outside our current, limited, commercial commitments."
He added: "This is avertable. If the Government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production. But so far, they have made no commitments."
A Government spokesperson said: "We signed a deal with the US in the national interest to secure thousands of jobs across key sectors. We are now working closely with the industry to understand the impacts of the Ƶ-US trade deal on the Ƶ’s two bioethanol companies and are open to discussion over potential options for support.
"The Business Secretary has met members of the bioethanol sector and senior officials continue to consider what options may be available to support the impacted companies."
