MIDLAND manufacturers could be driven out of business by government plans to tackle climate change, an MP warned.
Adrian Bailey (Lab, West Bromwich West) said the steel and foundry industry in his constituency could suffer if extra costs were imposed.
Jobs would be lost to manufacturers overseas where costs were cheaper, he warned.
But there were also opportunities for businesses to increase profits by going green if the Government gave them the right help, he said.
Mr Bailey was speaking after the Government unveiled a Bill to tackle climate change in the Queen's Speech.
Ministers will create laws to reduce carbon dioxide emissions, which cause global warming, by 60 per cent by 2050.
This could mean imposing extra costs on industries responsible for heavy pollution.
Speaking in the House of Commons, Mr Bailey said the Government was right to fight global warming.
He said: "The threat posed to security if huge segments of populations are deprived of their homes and livelihoods, or if the many borders or rivers between countries disappear is, frankly, incalculable."
West Bromwich was a traditional manufacturing area with more foundries than any other part of the country, he said.
"If the Government take the right decisions on climate change, my constituents will have more jobs and live in a cleaner and more energy efficient environment."
He added: "If the Government make the wrong decisions, foundries in my constituency will have higher costs and jobs could be lost to companies abroad that have higher carbon emissions, but which are at a competitive advantage because their overall costs are lower."
Demand for steel was rising rapidly, and firms in China were ready to meet it, he warned.
Stricter labour, health and safety legislation in the UK, Europe and the USA already combine to make it difficult for our manufacturers to compete. Additional costs can only further threaten our already vulnerable industries. We all share the air that we breathe, it is a global issue not a UK one. If the government is to force our industry to lead the way, they must offer incentives that will allow them to remain profitable. If they don't they will achieve their goals by simply shutting down our industry.