Packaging being driven out of UK

27 May 2005


Deputy chief executive of Amcor Flexibles Europe John Durston has said the UK's onerous regulatory burden and high labour costs and Europe's uneven energy pricing market" are driving packaging manufacturing out of the UK.

Durston was speaking at an Institute of Packaging-organised House of Commons dinner held in conjunction with the final meeting for the last Parliament of the All-Party Parliamentary Group for the Packaging Manufacturing Industry (APPG). MPs, Packaging Federation members and Affiliates listened to Durston's keynote speech on the "state-of-the-nation" for UK packaging manufacturing. The senior representative of the world's second largest packaging producer cited high labour costs as the main reason why packaging manufacturers moving out of the UK to "follow their customers". Claiming these account for almost 20% of the UK's total costs, Durston said the hourly UK labour cost for flexible packaging of around £20/hr compared unfavourably with a typical £12/hr in the US, £7/hr in Russia and just £0.60/hr and £0.40/hr in India and China respectively.

Also criticising the heavy regulatory burden on UK converters, he emphasised the need for a thriving UK packaging manufacturing industry "with the innovation and added value we bring customers".

Former labour MP for Normanton Bill O'Brien, who stepped down at May's General Election (a few weeks after the dinner, which he chaired), then chaired a sometimes heated round table debate on some of the key issues raised, during which former MP for Ochil and (now ex-) chair of the Trade and Industry Select Committee Martin O'Neill was particularly challenged on the energy pricing market, on which his Committee had just deliberated.

In his closing remarks Packaging Federation ceo Ian Dent paid tribute to Bill O'Brien for his support and hard work in "providing the sector with this important platform".

  



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