Bank of England
Dr Andrew Sentance, one of the recently appointed members of the Bank of England’s Monetary Policy Committee addressed a group of member companies in a discussion on a range of issues. In particular, he covered the Bank’s view on the UK and International economies and the rationale behind the current series of increases in interest rates.
In supporting the need to control inflation and the Bank’s decision making process, members took the opportunity to press the need to take into account the impact of rises on currency levels and on businesses already facing severe cost pressures.
For further information, contact Chief Economist Steve Radley
Work & Pensions Minister
We met the new Parliamentary Under Secretary of State for Work & Pensions, Lord Mackenzie, to brief him on a number of current issues. We re-iterated our support for the current Pensions Bill, the need for a financial support package for smaller companies, and that there should be no annual ‘cap’ on employee/employer contributions into personal accounts.
We also discussed risk management and the need to communicate a public message that a risk free society is neither achievable nor desirable. Finally, we urged the government to fund effective primary research to properly evaluate the potential impact of the Electro Magnetic Fields Directive in the manufacturing sector, and to use the resulting data to push for a wholesale review of this Directive in Europe.
For further information, contact Director of Health, Safety & Environment Gary Booton
DTI Report
We have published our proposals for the future of the DTI and government support structure for business. Having consulted Associations and member companies, our report ‘The Business of Government- ‘Promoting the Productivity Agenda’, has recommended a single government department for promoting economic growth which retains the current four key functions of the DTI.
We are of the view that it does not matter what the department is called so long as it has strong government backing at cabinet level and avoids the current confusion and overlap with the Treasury. We have also suggested a possible new Department for Infrastructure combining Transport, Energy and Planning.
For further information, contact Director of External Affairs Ian Peters
Energy Minister
We met the new Energy Minister, Lord Truscott, to brief him on a range of current issues. In particular, we discussed the forthcoming Energy White Paper and the opportunity it will present to strengthen the security of supply framework and promote low carbon technology.
We also pressed the need to establish an investment framework and technology policy to address the electricity generation ‘gap’, to help deliver objectives of post 2012 Kyoto and, an improved Emissions Trading Scheme (ETS). We are currently developing our own proposals with independent consultants on ETS post 2012 which we will deliver shortly. For further information contact Energy Adviser Roger Salomone
Working Time
Together with UIMM, our French sister organisation, we met at her request with Madeleine Reid, the Commission Official with responsibility for the review of the Working Time Directive. This was to provide her with a better understanding of French employers' views on the current Review, in particular the fact that their stance is at variance with the statement issued by the French government just before the last meeting of the EU Employment Council. In contrast, we stressed that employers in France share our view that the individual opt out, which provides flexibility for both employers and employees should be retained.
We also explained that CEEMET, the European employers' organisation to which both EEF and UIMM belong, felt that one way to overcome the current impasse on the review of this Directive would be to resolve the difficulties that the European Court of Justice decisions on "on call time" were creating for many Member States. Following this ways to find a solution to the future of the individual opt out could be examined.
For further information, contact EEF Deputy Director of Employment Policy, David Yeandle
Pay settlements remain stable
Manufacturing pay settlements are stable at 3.0% according to our latest figures from EEF, confirming that there are no real upward pressures emerging in the current pay round. According to our latest monthly survey of just over 400 pay settlements, including 365 reached in January 2007 alone, the average settlement level reached in the 3 months to the end of February 2007 was 3.0%. This was the same level as the revised figure for the previous 3 month period to the end of January 2007.
During the 3 months to the end of February 2007, the number of companies reporting that they had frozen pay rose slightly to just over 7% of all settlements, the highest figure since March 2006. The number of companies reporting that they had deferred their pay settlement was just over 3% of all settlements, the highest figure since December 2005.
For further information, contact Director of Employment Policy David Yeandle