UK chemicals industry sees 2005 as a crucial year

Judith Hackitt, director general of the UK Chemical Industries Association, highlighted the key issues facing the UK sector at a the group's recent council meeting in London.

As UK politicians gear up for a debate on the new EU Treaty, and against the backdrop of a Parliamentary Bill to enact the Treaty and prepare for a referendum and the commencement of the UK's Presidency of the EU, Hackitt updated the meeting on the business implications of the EU Constitution and the planned UK referendum as part of its ratification process.

She stressed that the chemical industry is international and that the CIA therefore had to retain the strongest possible voice in Brussels, where the bulk of legislation originates. And the proposed Constitution and the UK's particular role in the EU are likely to prove significant issues before, during and after the UK general election campaign expected in 2005.

"There is no doubt that this is going to be an important debate for business and particularly for the chemical industry. The benefits of membership of a large single market are well recognised throughout British business but are especially true for a global industry such as ours. Those benefits also bring a responsibility to engage with the EU's decision-making processes - and to help make them better," said Hackitt.

The UK has already secured very significant improvements to the Treaty itself, but there is now a need for the country to have a sensible debate about the importance of being part of the 'new' EU, how to best influence the EU processes and the priorities linked to the UK's upcoming Presidency of the Union.

The chance to take a smarter approach to regulation - that does not adversely impact upon our competitiveness - is high on that list, she said.

"As an industry, we must give our position some careful thought and we will publish a detailed position as part of a CIA "manifesto" that we will issue in the first quarter of 2005."

"But the bottom line is that we would be very concerned if the outcome of the national debate on the constitution resulted in any diminution of the UK's role - and therefore, the British chemical industry's influence - in the EU," she concluded.