Chemical Industries Association conference told output will rise 3.6% in the UK

Chemical Industries Association conference told output will rise 3.6% in the UK

The UK will continue to stand out in a depressed European economy for its growth prospects in the basic chemicals sector, including petrochemicals and plastics, a high-level London conference heard yesterday. Former ICI economist David Thomas of Oxford Economic Forecasting told the Chemical Industries Association Business Outlook Conference he forecast a rise in chemicals output of 3.6% in the UK sector.

This compares with a further decline of 0.5% in Germany after last year’s 4% fall, growth of just 0.3% in France and 2.4% in Italy. In the US and Japan, chemicals output is predicted to grow by 2.2% and 2.4% respectively. Thomas said there would be a world economic recovery this year, with the US leading the way, spurred by strong investment growth.

Confederation of British Industry director-general Digby Jones warned the 150 conference delegates that the UK’s competitive advantage was slipping away. Traditional labour market flexibility has been undermined by 16 new regulations and a Ј14bn (E19.6bn) burden over the past four years while the advantage of competitive tax rates is also being lost.

Jones pointed to the poor UK transport infrastructure, which has been hampered by a slow moving regulatory background. On a European front, he hit out at EU measures that hinder the area’s competitiveness. He said the Reach programme “is a good example of the way to hell being paved with good intentions”.