Intelligence Briefing - 20 November 2009

Week in Review

Minister briefed on manufacturing concerns

We met with the Business Minister Pat McFadden MP this week to discuss a range of issues from the Copenhagen Summit to the future of the default retirement age. On the latter we reiterated our members’ view that it should not be abolished. On Copenhagen, we urged the Minister to remain vigilant in protecting the interests of British manufacturing during the negotiations. We also encouraged the government not to lose momentum behind its recent efforts to be more active in supporting key sectors and technologies.

For further information contact Stephen Radley, Director of Policy

Manufacturers quiz key Conservative MP on future of manufacturing

A future Conservative government will need to have a clear vision on how to support manufacturing. This was one of the messages that EEF members were keen to get across when meeting the Shadow Business Minister, Mark Prisk MP on Monday. After hearing from Mark about the Conservatives' plans to address public spending and reduce regulation, the group also discussed the future of RDAs, business support and capital allowances.

For further information contact Steve Coventry, Senior External Affairs Adviser

EEF lobbies European Parliament on emissions directive

EEF took its lobbying activity on the proposed Industrial Emissions (IPPC) Directive to the heart of Europe this week. We are seeking to ensure that the text produced by the European Council, which is supported by UK industry and UK Government, is not negatively affected during ‘second reading’ in the European Parliament. Meeting several influential MEPs in the debate, we received assurance from them that they would continue to support our position.

For further information contact Kevin Considine, Senior Climate & Environment Policy Adviser

Government urged to show its hand on GHG reporting

We have asked DEFRA and DECC officials to provide a clear statement of intent on whether regulations will be laid before government in 2012 requiring companies to report their greenhouse gas (GHG) emissions. EEF accused government of failing to join up its policy strategy on this issue which, as a consequence, could hamper voluntary efforts by manufacturers to report on their GHG emissions until certainty is provided.

For further information contact Kevin Considine, Senior Climate & Environment Policy Adviser

Equality Bill campaign continues

This week, we met Neil Kinghan, the acting Chief Executive of the Equality and Human Rights Commission (EHRC), to discuss a number of equality issues. We stressed the importance of the EHRC providing employers with clear and practical guidance on issues arising out of the Equality Bill and for this guidance to be disseminated through established channels. We also expressed our strong opposition to the inclusion of provisions on dual discrimination in this Bill and argued that employers must be able to select from a range of options when reporting voluntarily on their organisation’s gender pay data.

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

EEF campaigns to halt EU carbon tax proposals

To voice our concerns that Brussels is proposing a harmonised carbon tax (in addition to the energy tax already in existence in the UK, namely the Climate Change Levy), EEF met with HM Treasury, DECC and BIS where we highlighted that such as proposal would increase costs and add to the confusion in this crowded policy area. Treasury officials were supportive of our concerns, which we also relayed to the European Commission directly in a separate meeting afterwards.

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

In the news

Our report Low Carbon Economy report received a range of coverage this week, being featured in the Daily Telegraph, the FT and a number of trade magazines, including the Manufacturer. Elsewhere we have responded to new plans from the Conservatives Party to scrap the Train to Gain programme and you can read what we had to say to the FT before and after the Queen’s speech. Finally we have released survey data which shows that the majority of manufacturers want to retain the default retirement age, this featured in the Times and Personnel Today

Weekly focus High growth, low carbon Business leaders and politicians from across the political spectrum are always eager to point out the major business opportunities associated with a greener economy. The reality is that the growing markets for climate-friendly products (or to use the latest jargon, 'cleantech' manufacturing) will be fiercely competitive. In a report published earlier this week, EEF takes a look at how the UK rates as a location for cleantech manufacturing. Low-carbon technology is rapidly becoming big business. The global market for climate-friendly goods and services was worth £3 trillion in 2008 and is projected to reach £4.5 trillion by 2015. A growing number of countries around the world are pursuing ambitious plans to develop home-grown low-carbon industries and are also actively courting inward-investment. To compete in this market, the UK will need to offer a first-rate business environment. Putting the political rhetoric to one side just how well-positioned is the UK to attract, develop and retain the companies which will lead this green industrial revolution? The UK currently offers both advantages and disadvantages as a location for cleantech manufacturing. Positives include a good pool graduates in scientific and technical subjects, clusters of essential skills like offshore and automotive engineering, and increasing government support for low-carbon technology. Unfortunately, major weaknesses exist too. Most notably there are question marks over the long-term supply of core skills, a tax system that discourages the capital investments manufacturing depends on and an industrial strategy which lacks sufficient ambition. On balance, despite recent progress, the UK remains a long way from being the best country in the world for manufacturers of low-carbon technology. However, there are strong foundations which can be built on. In our report we challenge government to be more ambitious and we set out 10 recommendations which would create a more compelling business environment for cleantech companies.

Economic data

Forthcoming data and statistics

24 November: Business investment (q3)

25 November: UK Output; Income and Expenditure (q3); UK consumer confidence (November)