Press Release
GMB concerned on gas sell off
25 July 2012
GMB call national meeting for 14th August of gas distribution shop stewards prepare to fight off further attacks on the crucial sector of the energy infrastructure following sale of 'Wales and the West utilities' to CKI.
On a day we believe the Government is going to get honest and say that gas has the major role to play in the UK energy mix, we see key parts of our gas infrastructure in Wales and the South West, including the gas emergency service being traded between financial institutions who have no long-term interest in the UK energy needs
Wales and the West Utilities (WWU), owned by McQuarries, the Australian pension fund, have been bought by Chueung Kong Infrastructure (CKI) a Chinese financial institution. CKI also own Northern Gas Networks.
Over 1,000 GMB members work for WWU, dealing with gas emergencies as well as repairing and replacing the gas infrastructure. Many more thousands of GMB members work in the rest of the gas supply and distribution industry. GMB is deeply concerned at this development.
Gary Smith GMB National Secretary said "McQuarrie told us they were in this industry to invest over the long-term. It was a lie.
GMB don't believe for a minute CKI has a commitment to the UK and gas consumers.
CKI currently own Northern Gas Networks. We have complained about safety with NGN in the past and the treatment of their workforce. We are deeply concerned that CKI will seek to use a big stick to manage the workforce in Wales and the West whilst cutting and slashing investment.
GMB Shop Stewards will meet on 14th August to discuss a response to the OFGEM cuts and the CKI takeover. GMB is going to resist attempts to reduce safety in the industry, cut jobs including apprenticeships and increase the use of subcontractors. We are preparing to fight further attacks on the crucial sector of the energy infrastructure.
On a day we believe the Government is going to get honest and say that gas has the major role to play in the UK energy mix, we see key parts of our gas infrastructure in Wales and the South West, including the gas emergency service being traded between financial institutions who have no long-term interest in the UK energy needs.
CKI currently own Northern Gas Networks and they have been leading a race to the bottom in the industry.
This sale comes on top of huge cuts to operating budgets being proposed in the gas distribution sector by OFGEM. Wales and The West are looking at cuts of 25 % in their budget under the OFGEM RIIO funding review.”
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