THE FUTURE of a General Electric (GE) site in Rugby is ‘at risk’ after the government threw out plans to build the world’s first tidal power lagoon.
GE Energy’s Leicester Road Power Conversion site was due to provide turbines for the £1.3bn Swansea Bay Tidal Lagoon project.
But the company – where jobs are already under threat – will lose out after business minister Greg Clark said the project did not offer value for money.
Last December, GE unveiled plans to cut 1,100 jobs at its sites in Rugby and Stafford – 671 from its Alstom business and 429 from Power Conversion, most of which are based at the Leicester Road site.
Unite the Union regional officer Zoe Mayou said there was real concern the site could now close.
She said: “Without this world-leading scheme, the future of this site is at risk. Rugby houses the largest VPI (Vacuum Pressure Impregnation) tank in Europe. Without Swansea bay this facility may disappear.
“Therefore it could be that the UK will lose capability to produce this equipment in future and have to import it and lose highly specialist skills.
“It is extremely short sighted and disappointing of this Conservative government to make this decision, particularly in the current climate when we should be protecting and growing our skill base and workforce.”
She added the decision was a let down to union members and site management who had been trying to secure business and demonstrate the site was viable.
Rugby MP Mark Pawsey said he was very disappointed.
He said: “I have spent the past 18 months making clear to Ministers the many benefits of the project to the supply chain here in Rugby, and for GE Power Conversion in particular.
“I have emphasised the importance of the project to Rugby at every opportunity in Parliament and arranged for the Business, Energy and Industrial Strategy Select Committee to hold an inquiry into the proposals.
“However, it is clear that the door is not closed to future wave or tidal technologies and I will work closely with GE moving forward to seek out any opportunities for the company that will help secure jobs here in Rugby.”
Rugby Labour’s parliamentary candidate said it was a missed opportunity for skilled jobs in Rugby.
Debbie Bannigan said: “The decision is very short-sighted and based on flawed economics.
“There are world-leading engineering skills on our doorstep and it’s vital for the local and national economy these skills are put to good use.
“We have to do better and we have to do more to keep the economy of Rugby thriving.”
Representatives of Unite and the Leicester Road site’s managers are now looking to reconvene with GE management to demonstrate the site’s viability.
