Intelligence Briefing - 13 November 2009

Week in review

Continuing consensus urged on pensions reform

We stressed the importance of maintaining the broad cross-party and stakeholder consensus on the government’s reforms to the UK’s pensions system during a meeting with Theresa May, the Shadow Work and Pensions Secretary. At this meeting we also covered a number of health and safety issues as well as the Equality Bill and the review of the default retirement age.

For further information, contact David Yeandle, Head of Employment Policy

International climate change discussed with Copenhagen negotiators

Continuing our campaign for a workable deal for industry at the forthcoming Copenhagen Climate Change conference, EEF members met with two of the key government officials (one each from BIS and DECC) who will be close to the negotiations. Among the points raised were the need for any deal to provide long-term certainty for industry and the importance of ensuring a level-playing field between globally traded sectors. Participants were also keen to point out that more needs to be done to highlight the business opportunities of the climate change agenda.

For further information contact Gareth Stace, Head of Climate and Environment Policy

Skills Strategy must finally deliver for manufacturing

We have welcomed the government’s National Skills Strategy announced this week, but argued that now is the time to deliver a world class, demand led skills system. We were pleased that the strategy recognises the need to simplify the skills systems, but we are sceptical about the plan to move skills strategies to the Regional Development Agencies (RDAs), a step taken without consultation with business

For further information contact Nigel Fletcher, Skills Policy Adviser

More progress needed on CCS and energy issues, say EEF

Attending the latest meeting of the government’s Business Energy Forum, we raised the lack of progress on carbon capture and storage (CCS) in the UK and received assurances from the Secretary of State that progress would be accelerated. We also took part in discussions regarding the short-term and long-term energy outlook. While the short-term outlook was more encouraging in terms of capacity and prices, significant concerns remains on the longer-term. We will be campaigning on these issues in the coming months.

For further information contact Roger Salomone, Energy and Regulation Adviser

EEF participates in government review of retirement

We participated this week in the first meeting of the government’s Stakeholder Group that has been established to examine its review of the default retirement age of 65. We used this opportunity to stress the importance of having an evidence-based review that looked at the views and practical experience of employers on this important issue. We also urged the government to resist any amendments to the Equality Bill which would remove the default retirement age when this Bill is discussed in the House of Lords.

For further information, contact David Yeandle, Head of Employment Policy

Campaign continues to reduce burden on business from costly waste regulation

We met with senior officials from DEFRA and BIS to discuss burdens on industry from overly-prescriptive waste regulation. We reiterated our concerns regarding potential additional burdens from new European waste laws and stressed the need for a more strategic and risk-based approach to waste and resources policies, as set out in a recent EEF position paper. We will also be taking these issues to DEFRA in a forthcoming Ministerial meeting.

For further information contact, Vanessa Fandrich, Senior Climate & Environment Policy Adviser

Government responds to EEF campaign for early CRC guidance

Further to EEF's success in shaping government policy on CRC, the Environment Agency has this week released the final, long awaited and crucial guidance on how the scheme will work in practice. The scheme will take effect from April 2010. EEF also offers a range of advice and guidance to help companies prepare. In the coming weeks we will be meeting with Environment Agency officials to explore ways to increase awareness of the scheme, which remains a problem.

For further information contact Amisha Patel, Climate and Environment Adviser

In the news

The attitude of the Banks to lending returned to the agenda this week where our calls for a new Bank for Industry were reported in separate feature articles in the Sunday Times and Observer. This was also picked up in a similar piece in The Guardian on the continued problems of accessing finance. On the Skills Strategy (see above) our views were included in an opinion piece in People Management ahead of the announcement and our comments also appeared there afterwards and in a number of other trade publications. Finally our recent survey on pensions also formed the backbone of an editorial on the closure of DB schemes in Professional Pensions.

Weekly focus

The future of regional policy under a Conservative government

The Regional Development Agencies aren’t perfect, but if they did not exist then you would have to invent something similar. That was the message we gave to the Conservative Shadow Communities and Local Government minister, Caroline Spelman, this week.

With a general election next year and the Conservatives currently riding high in the opinion polls, many people are asking what they can expect from a future Tory government. This is particularly true in the area of regional development and governance. (Which is important for business because a lot of government funding and support is delivered at that level.)

Well the Conservatives policy on RDAs (as set out in this policy paper and which we blogged about earlier in the year) is one of general scepticism. They have always been suspicious of the unaccountable nature of RDAs and point out that in many areas the Agencies are simply based on administrative, rather than natural, boundaries.

To address this issue, a Conservative government would allow groups of Local Authorities to come together to establish Enterprise Partnerships to take over the responsibility for economic development from their RDA. Importantly, the Business Secretary would have to be satisfied that the areas covered by the new Enterprise Partnership reflect natural economic patterns and have strong business leadership, before they transfers the money currently spent by the RDAs. And the Conservatives have told us that where there is a demand, perhaps in an area with a strong region identity, some RDAs may continue to exist.

The problem is that EEF members have generally told us that while they think that the RDAs perform patchily and need reform, they are a far better mechanism for addressing regional economic development than the local authorities – which often get distracted by turf wars and local politics. As a result we have developed this draft policy paper in consultation with our members, which argues that there remains a need for some kind of regional-level body to coordinate economic development.

We are keen to get views on our position and would welcome any comments which companies may have on this issue. (Indeed we have just discussed this with members in Yorkshire and the Humber and already have a number of helpful suggestions to add.)

> download our draft policy paper

If you have views, please contact Steven Coventry, Senior External Affairs Adviser

Economic Data

Coming Up

Forthcoming data and statistics

17 October: Consumer Price Indices

18 October: MPC Minutes

19 October: Public Sector Finances, Retail sales

And one further out for your diary: Pre-Budget Report, 9 December 2009

Forthcoming Events

Making our future

December 11, 2009, 8am for 8.30am - 10am
GKN Aerospace Ltd, Bristol

The intersection of the UK's design and materials expertise is allowing manufacturers to tackle emerging problems from climate change to infectious diseases. And capitalising on these capabilities allows manufacturers to continually add value in increasingly competitive and rapidly evolving global markets. How is design changing the future of UK manufacturing? What are the key drivers and priorities for materials and design? How can we overcome barriers?

Panel speakers include:

Marie-Anne Mackenzie, Director, Manufacturing and Materials Unit; Department for Business, Innovation and Skills

Steve Radley, EEF

Additional panel speakers to be confirmed

For further information visit www.manufacturingourfuture.co.uk/debate