W2B-031 Technology matters 1-4.txt
A twin track strategy for industrial growth

The Engineering Employers Federation represents the interests of £ 5,000 companies in all sectors of the UK engineering industry Ð the backbone of the British manufacturing.

The industry is one of Northern Ireland's largest exporters and employers.

The main themes of the EEF's industrial strategy include: The importance of industry for recovery of the whole economy; the need for improved Government-industry dialogue and mutual understanding; education and training; investment, not only in industry but throughout the economy; and export support.

The strategy proposals address the three groups responsible for the UK's industrial future; industry itself, Government, and to the financial institutions. But included messages for all politicians, policy advisers and those involved in education and training at all levels.

Unemployment is increasing by the day, businesses are closing at an alarming rate and confidence is at an all time low. The UK economy is in immediate trouble because its manufacturing base is too small. That is why there is a balance of trade deficit even while the country is deep in recession, warned the EEF The UK needs a twin-track strategy for economic growth, says director general Neil Johnson.

The two elements are immediate action to rectify the balance of payments and continuous long term development of technology and industry.

Engineering and manufacturing form the basis on which everybody's prosperity depends. Most economic growth, even in service industries, originates in technological innovation from the manufacturing industry.

To maintain our standards of living we need to revive industrial innovation. To do that we need a vision of what is possible and how it can be achieved Ð an industrial strategy.

The chief purpose of an industrial strategy is to develop strategic thinking about national industrial affairs. It provides a common background of knowledge and understanding for individual decision makers. Industrial strategy is not about Government intervention, but government does have a crucial role in stimulating and co-ordinting strategic thinking. Industrial strategy is an essential counterpart to macroeconomic policy.
The main items on the EEF's agenda for an industrial strategy include:
Encourage internationally mobile investment to locate in and remain in the UK.

Government to provide effective, timely and internationally competitive export finance, local intelligence in export markets and political support for major projects.

Extend capital allowances for plant and machinery permanently to 100pc.

Develop strategic thinking in industry and government.

Industry to look for organic growth, not just acquisitions.

Government to take the lead in developing a vision of how industry and technology can be developed to national advantage.

Industry to provide ideas and information about how industry and technology can be developed to national advantage.

Shift emphasis from scientific research to technological development.

Government to maintain continuity of technology support through to full commercial exploitation.

Central and local government to act as a'sophisticated and demanding buyer' to develop and stimulate strategic technologies and businesses.

Pursue the European Fighter Aircraft programme and make a speedy move to production Government to regulate telecommunications, energy and transport industries with a view to technological advance; and to competitiveness of their UK customer and supplier industries.

Government to assist UK industry to exploit the world market for environmental technology.

Government to consider the impact on industry of all policy decisions and draft legislation.

Government to establish effective conduits for industry-government communication, embracing all departments and at all levels.

Industry to ensure all employees'performance and development needs are assessed regularly.

Industry to match world best practice in utilisation of employees'skills and abilities.

Industry to increase efforts to show industry's vital place in society and that it can offer careers that are both rewarding and of social importance.
