| Delighted to be speaking to you today.
My commitment to the Aerospace Innovation and Growth Team is as
strong today as it was two years ago when Sir Richard and I started our
'Industry led, Government backed' approach.
Arriving at Farnborough by helicopter this morning and seeing the Air
Show site from the air, really brought home to me what a vibrant and
exciting industry this is. The statistics that are often quoted about
the UK aerospace industry are impressive:
· turnover of £17bn;
· direct employment of over 120,000;
· positive annual balance of trade of over £2bn;
· gross annual investment in R&D of £2.1bn.
All in all - a great success story - an aerospace industry second
only to the US in size with world-class scientists, engineers and
manufacturers.
You've always been at the cutting edge. We want to keep you there and
raise the rest of UK manufacturing to your standard.
Our response to the competitive global market must be innovation -
using faster, cleaner processes to offer high value products and
services that the world wants to buy.
In government there is much we can do to help promote innovation. At
the DTI - and I must say rumours of our demise have been much
exaggerated - it is our top priority.
In fact I see my department as the Department for Trade and
Innovation - because innovation policy is part and parcel of our
industrial policy.
We no longer accept the approach that says 'invest first, innovate
later' - because it doesn't work. Not for the companies who ended up
going to the wall, or the workers who lost their jobs because the
business was uncompetitive.
Instead we invest in innovation - to help create the new
manufacturing companies of the future - in aerospace and across
industry.
We fought a tough spending round this year and I want to thank all
those in the industry who added their voices to the call we were making
for more money for science and technology. In a spending round where the
focus was very much on public services we made the case for innovation
and we won.
We've continued to show our firm commitment to the science budget -
more than double since 1997 to £3.3 billion by 2007/8.
And we secured £12million for the hugely successful Manufacturing
Advisory Service - a programme that has boosted manufacturing by more
than £53million, delivering an average £100,000 added value to every
manufacturer that goes through the full programme.
Importantly - funding for the Technology Strategy will increase by
£140m per annum by 2007/8. Taken with the re-direction of existing
spend on innovation this will increase spending on the Technology
Strategy to more than £250m per annum by 2007/8.
Of course - it's not all for aerospace!
But, I am confident that this spending review settlement, together
with the commitment from our partners in national and regional
government, will enable us to meet the AeIGT's recommendations for a
National Aerospace Technology Strategy, including the proposed £50m per
annum increase in government funding for civil aerospace R&T. We'll
be looking for robust proposals from industry to merit this investment.
And we'll be working closely with business to pull through and
exploit technologies from the UK and international research base with
projects like the National Composites Network which we are funding to
the tune of £4.75 million from the technology strategy. Bringing in
£14m from RDAs and devolved administrations, plus money from industry,
to deliver an initiative with total funding exceeding £30m. It's a
great example of working in partnership, a clear sign of government
commitment to the National Aerospace Technology Programme and it will
ensure that the UK remains in a leading position on all aspects of
composites technologies. Delivering benefits across the automotive,
marine and construction sectors.
It's this kind of partnership that brings results. And that's what
the AeIGT is all about.
I'm delighted that Sir Richard has agreed to stay in the driving
seat. His commitment and leadership have been instrumental in getting us
where we are today.
Regional and national partners are key. I'm delighted that the RDAs
and devolved administrations and the associated regional alliances are
involved in all the IGT Working Groups and that Bryan Gray is a member
of the IGT Executive Board and is doing such a great job co-ordinating
activity.
We've got a great opportunity to drive economic growth regionally
through joined-up action on an integrated national aerospace plan.
We are beginning to make real progress. The National Aerospace
Technology Strategy is taking shape; Process Excellence pilots are
confirming that real productivity benefits can be achieved by driving
improvements through supply chains. The 'Directory of Learning' we are
funding will help to spread that knowhow across the sector and key
players are on board to tackle critical skills needs. I'm particularly
pleased that the Sector Skills Council, SEMTA, is part of the team -
getting the Sector Skills Agreement right will be crucial.
As I said to the TUC Manufacturing Conference last week - there are
some 64,000 manufacturing vacancies in the UK at the moment. Charles
Clarke and I want to work more closely with the unions, business and
other stakeholders, to ensure there is a steady stream of people
emerging from our educational institutions with the right skills needed
for a career in modern manufacturing.
I'm delighted that you are promoting careers in aerospace at the
airshow this week. We need to get skilled and enthusiastic people into
these jobs to take on the challenges and opportunities the sector faces.
As the AeIGT identified - harnessing new technology is key to the UK
aerospace industry's competitive edge. And having the right people with
the right skills in the right place to harness it is crucial.
Air travel is forecast to grow to around 3 times current levels by
2030. And the government is committed to reducing carbon emissions by
60% by 2050 with real progress by 2020.
This presents a real challenge and a great opportunity for the
industry.
We need radical solutions and we'll only get them through innovation
and by working together.
For the companies who develop cleaner, greener technologies - the
rewards will be great. Ahead of the competition and ahead of legislative
changes is where the UK industry needs to be. Leading the world in
technologies that will help to protect it.
The Aerospace IGT is helping UK aerospace to meet these challenges.
With the right partnerships in place and the government's commitment to
technology and innovation I am confident that the future of the UK
aerospace industry will be every bit as bright as its illustrious past.
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