An Oxfordshire firm is threatening to move abroad, with the loss of 67 jobs, if it is hit by a new energy tax, writes Madeleine Pennell.

Horticulture company Colegrave Seeds, based in Adderbury, near Banbury, reckons the tax will cost it £70,000 a year - increasing overheads by 54 per cent.

The energy tax is being introduced in April 2001 to cut carbon dioxide emissions by 20 per cent.

John Gibson, the firm's seed director, said: "The Government is trying to do something to improve the environment and everyone applauds that, but it will penalise industries such as ours.

"Our main competition is from the continent, but countries such as Holland, France and Germany are not facing a tax like this."

Tony Baldry, MP for Bicester and Banbury, said: "One has to take seriously the suggestion that if this tax goes ahead Colegrave would stop producing seeds here. That would be a great tragedy."

Story date: Thursday 02 March

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