Government rescues Billingham factory supplying CO2 lifeline

No details of the package were released, but Business Sercretary Kwasi Kwarteng has always said any rescue would have to be temporary.

The closure of the Teesside plant and another at  Ince, Cheshire due to high gas prices had sent shockwaves around a number of industries. As a by-product of its production of fertiliser, the company is the UK’s biggest supplier of CO2 essential for the humane slaughter of livestock and extending the shelf-life of a huge range of products.

One industry leader said earlier shoppers might only about ten days left before they are hit by shortages.

But during his visit to America, Prime Minister Boris Johnson had pledged: “Obviously, we’re working with the companies to make sure that we can keep the supplies going.

“On the carbon dioxide issue that’s particularly important for some industries, we’re taking direct steps to make sure that that continues to be available.”

Asked whether that meant subsidies, he said: “We’ll do what’s necessary."

Shoppers may only have a few more days before they notice glaring gaps on their supermarket shelves.

Ian Wright, chief executive of the Food and Drink Federation, told the BBC the potential shortages of CO2 supply was “a real crisis” and said “the just-in-time system which underpins both supermarkets and hospitality industry is under the most strain it has ever been in the 40 years it has been there”.

He said that poultry production will begin to erode very seriously by the end of this week, with the same being true of pig production and the making of bakery goods. Meat packaging is probably only about a week behind, he added.

Business Secretary Kwasi Kwarteng

Any Government bailout could only ever be on a temporary basis, the Business Secretary Kwasi Kwarteng said earlier.

But he admitted assistance of some sort was still being discussed after he spoke to the chief executive of CF Industries twice in the last two days.

He told the BBC: “I have to say if there is support provided, that will be on a temporary basis, that’s not something that we want to do indefinitely.”Mr Kwarteng said: “I think we have to have a diversity of sources of carbon dioxide there. CF isn’t the only company that manufactures carbon dioxide. They have a big share of market, I said they weren’t the only one. But they are a big part of the carbon dioxide market.”