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Rt. Hon. Richard Caborn - Former Minister for Trade (Jul 1999 - Jun 2000)Southern Manufacturing 2001 |
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I would like to thank the event organisers for inviting me here today to officially open this Exhibition. It is an excellent showcase for British manufacturing industry. Bringing together under one roof a host of key regional businesses and business support organisations. I would like to take this opportunity to share with you the Government's ambitions for the UK's manufacturing sector. A strong manufacturing sector is vital to the British economy. It contributes a fifth of our national income (nearly £150 billion per year) and nearly two thirds of our exports, whilst employing some 4 million people. It includes many of our most innovative businesses, and is a major source of growth in productivity, exports and R&D. My message to you, and that of the Government is that manufacturing is and will remain of major importance to the British economy. I know that engineering is very important to the South East economy, particularly high performance engineering. As an engineer I am particularly please that engineering is the single largest exporting sector in the South East - exporting over £4.3 billion in 1999, representing 18% of the UK's share of exports in this important sector. CURRENT STATE OF MANUFACTURING The problems facing manufacturing need to be kept in perspective. Despite more intense competition from overseas our performance as measured by output, exports, productivity and investment is improving. Exports in particular have grown strongly, up by over 9% over the last year. Employment in some sectors, for example aerospace, motor vehicles and computers has grown by over a quarter over the last 6 years. Businesses that embrace the knowledge driven economy have the best chance of success. At their best, our manufacturing companies are forward-looking, investing in new technologies and equipment, providing world class skills and training, and winning new markets and new opportunities. None of this means we should become complacent. More needs to be done to keep ahead of the competition - especially for manufacturers in more mature sectors. NEW DTI WHITE PAPER This month saw the launch of a joint DTI and DfEE White Paper - "Opportunity for all in a World of Change". This important new White Paper addresses key challenges for enterprise, skills and innovation, and sets out the next steps for the Government. The White Paper is innovative in a number of important ways. Joint sponsorship by DTI and DfEE recognises that the skill and ability of each individual is the bedrock upon which economic success depends. The White Paper also represents a change in that it emphasises the importance of strong regions and communities in building a successful national economy. That is why the White Paper has been published with regional supplements that describe how the new programmes and initiatives will build on current activity to help each region. The White Paper acknowledges that the South East is prospering in the highly competitive world wide knowledge economy. But we face the challenge of widening the winners circle so that currently disadvantaged individuals and areas share in the prosperity that others are enjoying. The Government is committed to creating the right environment for success and to enable innovation and enterprise to flourish. We can now build on the strong foundations which we have put in place since 1997. Inflation and unemployment are at a 25 year low. Public finances are strong. Employment is at records levels. Economic stability has contributed to an increase in business investment and R&D. But we must and will do more. The White Paper addresses weaknesses in our workforce skills, the need to improve access of start-ups to venture capital, the need for more incubators for high-tech businesses and the need to develop better links between universities and industry. All of this is necessary to succeed in the emerging and fast growing sectors of the future. This Government recognises that a strong manufacturing sector is vital to our future prosperity. For the UK to succeed as a global economic force our manufacturing industry must be at the leading edge of the economy, producing high value added output and world beating products. Manufacturing businesses must grasp the opportunities presented by new technologies, new ways of working, and new markets. Many of our manufacturing companies are already doing this, and are world leaders. Manufacturing today is facing the twin challenges of globalisation and new technology. As a result there is huge restructuring, both in the UK and elsewhere in the industrialised world. Government has a responsibility to help: first and foremost by ensuring economic stability; and secondly by investing in skills, science, transport and basic infrastructure. WHAT IS THE GOVERNMENT DOING? The Government is: Investing over £1 billion into the science base over the next three years. This is on top of the £1.4 billion we have already invested. Putting £180 billion into transport infrastructure. Through the new White Paper the Government will help manufacturing stay ahead by: Providing £100 million to develop vocational specialisms in colleges and Modern Apprenticeships for work-based learners. Working with business to significantly increase the number of business placements for science, technology and engineering teachers. Investing an extra £45 million in a smaller and stronger network of National Training Organisations. Promoting more collaboration between firms, including through learn direct online learning centres. We are taking measures to extend manufacturing excellence in every region by: Establishing top class university innovation centres and new technology institutes to boost R&D, innovation and technology transfer. Investing £15 million in a new Manufacturing Advisory Service to provide small and medium sized manufacturers with hands on help. Creating a Job Transition Service to help growing companies tackle skills shortages. We are also promoting a series of new activities and projects to ensure that business can commercialise new technologies and help manufacturing companies to integrate them into world beating products and processes. Giving £30 million to UK online to help businesses transform themselves through Information and Communications Technology (ICT). Investing £25 million in a new genomics programme to help businesses develop new products and services. Providing an extra £10 million for the Waste and Resources Action Programme to develop new markets for recycled materials and promote technologies that reduce waste. Launching a £30 million fund for innovative schemes to meet local broadband needs. Taking measures to relax insolvency rules so that honest hard working people are given a better chance of starting again. We have also given a new role to the Office of Fair Trading to remove inappropriate barriers to entry and competition. We are simplifying and refocusing DTI business services to better meet the needs of business. We are also investing £20 million in Invest UK and Trade Partners UK online operations to meet the changing needs of business. CONCLUSION This Government has adopted a new approach to regional policy. Building on the economic success of regions and communities. Based on encouraging enterprise, skills and innovation. The Government's new White Paper will put this approach firmly into practice. By working with your South East England Development Agency and other regional bodies and partnerships the Government will build on the real progress that has already been achieved to remove barriers to higher productivity. I encourage you to participate in your region's representative bodies so that your voice is heard and your needs are met. All of us here today share the same goals. We want to see strong business sectors with increased business start-ups and support for entrepreneurs. A strong manufacturing industry, with competitive markets and sustainable growth, together with improved education and skills. All this is vital to our standard of living as a nation. The recipe for economic success lies in the efforts, creativity and the entrepreneurial spirits of individuals in businesses, communities and regions throughout the UK. |
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Other speeches by Rt. Hon. Richard Caborn - Former Minister for Trade (Jul 1999 - Jun 2000) |
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