1. TWO QUESTIONS: DOES THE UK WANT A CHEMICAL INDUSTRY? AND IS IF SO IS THE UK A PLACE FOR THE INDUSTRY TO INVEST AND GROW? Dr Diana Montgomery Deputy Chief Executive, Chemical Industries Association

2. The UK Chemical Industry £60 bn turn over £30m a day to the UK’s balance of payments Half a million jobs depend on the sector Products essential to everyday life and are needed to supply the rest of manufacturing Integrated supply chains Foreign headquartered so UK sites competing for investment 80% of UK chemical production is exported – much to EU and US

3. Creating Value: Summed up by Bob Lutz in his book “The Car Guy”....... Economic value is created in 1 of 3 ways: Mining materials from the Bowels of the earth Growing food and wood from the surface of the earth Manufacturing and distributing the products of the first 2.

4. Energy intensive but environmentally efficient Energy large part of chemical companies’ costs UK chemical industry is 35 % more efficient since 1990 McKinsey report shows industry overall climate change solution provider Chemical industry products save at least twice as much CO2 emissions over their lifecycle as it costs to make them, This could improve to 1:4.7 with the right policy framework

5. Environmentally efficient

6. CIA Sustainable Development Programme Sustainabiltiy programme across whole UK sector since 2004 Publically reported indicators of performance annually Committed to CIA Sustainable Development Principles. –Safe products and operations, –resource efficiency, –Innovation, – fairness, – respect for people and communities, –going beyond compliance, –openness –and leadership

7. CIA Sustainable Development Programme Key Elements Verification of Responsible Care Implementation of the Global Product Strategy Development of leading indicators in the areas of Health, Safety, Environment, Transport and Climate Change Agreement of the methodology and data for carbon foot printing Development meaningful economic indicators and tracking progress Ensuring our workforce has the skills and ethical standards to deliver for their companies, customers and stakeholders Public reporting of progress Continuing to build our reputation for constructive, fact-based representation

8. My evidence for why the UK needs a chemical industry to deliver real financial value in the short and longer term To create jobs both directly and through the supply chain. To foster innovation in delivering solutions to global problems And to do so with as little direct impact on the environment as possible......

9. How does the UK attract investment A long term manufacturing strategy which provides certainty of government policy Competitive and stable energy prices with security of supply Proportionate and predictable regulatory framework pragmatically enforced Competitive and stable tax regime Solid skills base with flexible labour market A Government that can package itself to the outside world as one who will welcome and facilitate new investment

10. Conclusion There are many reasons to be optimistic about the chemical industry in the UK. We have innovative companies, great talents and increasingly a culture that once again respects people who make things. There is evidence in our sector of UK companies being globally competitive We are the industry that will produce answers to the environmental challenges we face. If the Government can provide the right framework, the UK chemical industry will continue to lead the way through new industrial revolutions