EU chemical proposals slammed by CBI

The CBI has strongly criticised new EU proposals regulating the use of chemicals as "not doing enough" for businesses and which could cost the UK jobs in the long term.

The REACH proposals, announced today, will require companies to disclose information on the production and use of all chemicals. A new system of registration, testing and authorisation will apply to more than 30,000 substances produced or imported in the EU.

According to Greenpeace, chemicals producers will have to bear costs of 2.3 billion euro over 11 years, which they claim represents 0.05% of the sector's annual turnover. These costs will be passed on to users and are expected to result in an overall cost to industry of 2.8-5.2 billion euro over 11 years, the environmental organisation said. The CBI has claimed that this figure is an underestimate.

CBI Director of Business Environment, Michael Roberts, said: "Protecting the environment and people's health is vital, but this proposal will achieve little at huge cost. Everyday items made in this country, ranging from cars to paint to curtains, will become more expensive compared with products imported into the EU.

"This is a recipe for exporting jobs out of Europe to countries where environmental standards may be less stringent.

"We welcome the modifications made to the proposals and the support of the UK government, with France and Germany, in securing them. But we still need to see a system that prioritises those substances that pose the most risk rather than those produced in the largest quantities."

The CBI said that the Commission needed to go further in assessing the full impact of its proposal.

(gmcg)