Food shortage fears averted as CO2 supply deal is agreed
MINISTERS bidding to avert a food supply crisis have struck a deal with a US company to restart carbon dioxide production at its UK plants.
Business secretary Kwasi Kwarteng held talks with CF Industries after it stopped work at its fertiliser factories – which supply CO2 used in food production – due to soaring gas prices.
No.10 last night said the firm had agreed to get its plants in Teesside and Cheshire ‘up and running as soon as possible’.
It did not say if the company had been offered any money by the government.
CO2, a by-product of fertilisers, is used to stun animals for slaughter, make fizzy drinks and in the vacuum packing process.
The deal comes after a food industry group warned shoppers may see gaps on supermarket shelves ‘in about ten days’ if there was no state intervention. Ian Wright, of the Food and Drink Federation, also said the supply chain was ‘under the most strain it has been in for 40 years’.
But PM Boris Johnson urged people not to worry about putting food on the table this winter, amid rising energy and food bills and a cut to universal credit.
It came after Mr Kwarteng (pictured) said the scrapping of a £20-a-week uplift to the benefit could make it a ‘ very difficult winter’ for some.
He admitted many families may have to choose between eating and heating their homes, as next month’s benefit cut coincides with the energy price cap rising by £139-a-year. The Resolution Foundation think-tank estimates the issue will affect 4.4million households. But Mr Johnson refused to back down over the planned cut.
‘The best thing we can do is help people into high-wage, high-skilled jobs,’ he said during a visit to the US. Meanwhile, the global fuel price rise is pushing some energy suppliers to the brink of bankruptcy.
Emma Pinchbeck, of Energy UK, urged No.10 to support companies through ‘a really unprecedented time’. But Mr Kwarteng said he would not throw taxpayers’ money at ‘badly run’ companies. Ministers and industry chiefs insist there is no danger the lights will go out this winter.