South Wales Evening Post reported that plans to introduce a new carbon tax that could threaten the competitiveness of steel giant TATA have been described as industrial masochism by a campaign group which is calling on the Chancellor to abandon the scheme.

With just over a week to go until Chancellor Mr George Osborne delivers his autumn statement when he is expected to offer additional help to energy intensive industries affected by the super tax, the Taxpayers' Alliance has called on the Treasury to scrap the proposal.

New research published by the TPA suggests that the carbon floor price will threaten the future of energy intensive industries, like TATA in Llanelli and Port Talbot, whose costs will rise in Britain, while their competitors' costs in the rest of Europe will fall.

Mr Matthew Sinclair director of the TaxPayers' Alliance said that "Putting in place a carbon floor price that threatens major, successful British industries with huge rises in their costs is absolute madness at a time when we need the economy growing. Particularly when it will mean workers in Britain bear more of the burden, but overall global emissions are higher than they would have been without our politicians making such an expensive mistake. The government should scrap the new tax, or at least ensure that energy intensive industries aren't disadvantaged competing with rivals around the world. Mr George Osborne needs to abandon this industrial masochism."

(Source from www.thisissouthwales.co.uk)