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Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)CBI London Region Annual Lunch |
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Thank you for the welcome. I am delighted to see so many people here who are united in the common goal of making London the most competitive capital in the World. Today, I would like to talk briefly about some of the ideas my Department is promoting as well as focusing on London?s position as Europe?s Digital Capital. Firstly I want to talk to you about the future, a risky business I?ll admit. Many big names have fallen at this particular fence: The US Commissioner of Patents, Charles H Duell, memorably claimed in 1879 that "everything that can be invented has been invented." I?m not sure how long Mr Duell remained the US Commissioner of Patents! Or Lord Kelvin who declared in 1885 that "heavier than air flying machines are not possible." Even Albert Einstein who said that energy would not be obtainable from the atom. More recently, Thomas J Watson - the founder of IBM - in the fifties argued that there would be a world market for just six computers. Ken Oulsen, President of DEC in 1977 claimed there was "no reason for any individual to have a computer in their home." How wrong they all were. The role of DTI I would like to say a few brief words about what the DTI?s role should be. I have very strong views on what we should and should not be doing. We are not in the business of second guessing boardroom decisions. That is not the job of Government. What we can do is establish a framework, creating a stable economic climate that gives you some certainty as you make decisions and plan ahead. I also take the view that the creation of wealth is of crucial importance if we are to create the sort of society that I want to see. A society that is pro-business and promotes social justice and fairness. I do not view these as incompatible. It is successful and prosperous businesses which can employ more and more people and also ensure that public finances are sound, so that we have the resources to fund those essential public services like transport, health and education. That?s why there is a fundamental role for business at the heart of this Government?s thinking and it ensures an important role and part to be played by the DTI. When looking at the role of the DTI I want to touch on three areas: Firstly, investing in British capabilities - in particular our science and engineering base, and skills;
And finally by acting as a catalyst to collaboration both between businesses, encouraging greater business to business learning and the take up and endorsement of best practice, and between business and the science base through the Foresight programme and by other means. One of the final acts of Peter Mandelson as Secretary of State was to present the Government?s Competitiveness White Paper. I believe that it has been widely welcomed by business. And it is a great credit to Peter the reception it received. But it would be a great shame if the White Paper was left on the shelf and not implemented. That is why we will publish in March a clear implementation plan to show how all 75 commitments will be delivered and when. And in a first for Government, we will make clear which individual civil servants are tasked with implementing particular elements. The real challenge facing this country is how we encourage an enterprise culture in this country. One of the most disconcerting statistics I have seen in my time as Secretary of State is a study of final year university students in the UK and USA. This showed that the percentage of British students considering setting up their own business was only 7% as compared with 68% in the United States. This is an example of the lack of an enterprise culture in this country. We must harness your support in challenging this culture. One way in which we are challenging this is through a review of the insolvency laws. Currently, what I describe as the responsible risk taker is treated in the same way as someone who exploits the rules for their own advantage. We must remove the stigma of failure. Preparing for the knowledge driven economy Second, as well as changing attitudes, we must also prepare the UK to take advantage of the new knowledge driven economy. Success in this fast moving world depends critically on how well we exploit our most valuable and distinctive assets: our knowledge - including our world class science and engineering base, our skills and our ideas. The first industrial revolution was based on investment in capital and machinery. The revolution we are going through now requires investment in human capital - skills learning and education. But the Knowledge Driven Economy is not just for new industry. It is as much about the old traditional industries. If they are to succeed in the future then they must embrace the benefits of the knowledge driven economy. What has struck me in my time as Secretary of State is the number of companies in traditional industries already doing this. Preparing Britain for this new world will be a great challenge, but I also believe a great opportunity. The Information Age Today, I want to focus on one of the central elements of our programme of economic modernisation: achieving UK leadership in the Information Age. We live in an electronic world. Computing power, and its convergence with communications, has become the defining technology of our age. For individuals, it is bringing new ways of learning and communicating, of performing everyday tasks such as shopping, and quite simply of having a good time. For businesses, it is changing working practices, opening up new markets, creating new products and new forms of distribution. As we enter the new century, we face an historic opportunity to lead in this new world. I believe my predecessor summed it up very well when he said we must create, in the UK, Europe?s digital capital. And here in London we know the importance of that challenge more than anyone else. London is Europe?s Digital Capital. The City lies at the heart of one of the most technologically advanced network infrastructures in the world, handling nearly a third of the world?s foreign exchange trading. And it is not just London?s financial sector which is at the cutting edge: two-thirds of London business has a shop-front on the World Wide Web - significantly more than in the US, Canada, Germany or Japan. London has a high quality skills base, with some 50,000 people employed in computer and related services. Some 30,000 Londoners were involved in the systems and other changes needed for the successful launch of euro trading. London has world class academic institutions, with over 100 universities and colleges and a long tradition of innovative research. London has world-class companies in the IT, electronics and communications sectors - For example, 60% of 3-D graphics chips worldwide are designed by London companies. London leads the world in the provision of digital content and information services. And of course London benefits from being based in the UK! And we have a market which remains at the leading edge:
The Government is determined to build on these strong foundations. We have set ourselves two ambitious goals: ? To develop the UK as the best environment in the world in which to trade electronically. ? And to ensure that we exploit that environment to the full, by trebling the number of businesses wired to the digital market-place to 1 million by 2002. As I say, this is ambitious target. And rightly so. If we do not aim high, we will surely see others pass us by. We in Government are planning a wide range of actions to help meet these goals:
These and similar initiatives are proof our committment. And they also prove our commitment to partnership with industry. Many flow directly from the advice Government received from senior business leaders on the Information Age Partnership. I can today announce three new areas where I want to work with industry to bring greater focus to our efforts. First, consumers. The need to ensure that e-consumers are fully empowered to take advantage of the Information Age will form a central part of the Consumer Strategy which I am publishing in the Spring. Second, ensuring that IT is not the preserve of a priveleged few, but truly available to all. My Department is leading a new team of experts from Government, business and the community sector to bring the benefits of these technologies to those cut off from the social mainstream. Last, but certainly nor least, skills. London has a unique skills gap. It is a city of extremes. 30% of Londoners hold a degree but 50% still only hold qualifications below NVQ Level 3. London has more unemployed people than Scotland and Northern Ireland put together but 1 in 5 employers report problems in recruiting the right staff. The UK, and London, faces a huge and growing demand for people with up-to-date engineering, electronic and leading edge technology skills. Many nations face similar difficulties. But our competitive position depends on how well we address this fundamental issue. I intend to work with my former colleagues at the Department for Education and Employment on this important issue. We have already asked the National Skills Task Force and the Information Age Partnership to produce a national strategy for meeting the skills needs of these sectors, which we will publish before the summer. Developing and driving forward a skills strategy for London will of course be one of the new Mayor?s many tasks. The new Greater London Authority will bring a strategic focus that has been sadly lacking for 13 years. And will do so in a way which is democratic and fully in line with business priorities, not least because we will be requiring the GLA to consult business. Conclusion In conclusion, the growing importance of electronic commerce and the convergence of digital technologies is revolutionising the world in which we live. This Government has a clear vision of the future in which the UK is the leading digital economy in Europe, London is its Digital Capital, and both are leading players world-wide. I know I can count on your support in driving through the programme of change we need to if we are to realise that vision, for our capital and for our country. |
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Other speeches by Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)
(the following are available from the archive) |
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