Government unveils manufacturing plan for green economy

· Blueprint to improve skills backed by £150m · Hope for an extra 260,000 jobs in energy sector
Mark Milner, industrial editor
The Guardian,
Tuesday September 9 2008

The government unveiled a new strategy for manufacturing yesterday that aims to boost skills, exploit the opportunities of a low-carbon economy and bolster the sector's image as an exciting place to work.
The new framework emphasises manufacturing's key role in a mixed and balanced economy and argues that Britain can become a world leader in nuclear and renewables, where some 260,000 jobs could be created over the next decade.
New Challenges, New Opportunities, which replaces the government's 2002 manufacturing strategy, wants to see a further boost to the number of manufacturing apprenticeships and pledges further support for some 600 companies looking for opportunities in India and China.
A new body, Manufacturing Insight, will be given the job of selling the sector as "successful, modern and broad" and an exciting place to work.
John Hutton, the business secretary, said: "Manufacturing is central to the success of the UK economy and it is vital the sector has the right foundations to endure the current economic slowdown and emerge stronger and fitter than ever."
The plan, which has been drawn up by the Department for Business and the Department for Innovation, Universities and Skills, in partnership with industry, will be backed by £150m of medium-term support for UK manufacturing.
Hutton said the UK was the world's sixth-largest manufacturer, with the sector accounting for over half the UK's exports, employing about 3 million people and contributing £150bn towards the economy. But he added: "We need to recognise that the global landscape is changing so we can help UK manufacturers stay ahead of the game.
"I want the UK to be at the forefront of opportunities opened up by the move towards a low-carbon economy. With the right support in place, we can grow our nuclear and renewables industries to become world leaders in green technologies, supporting hundreds of thousands of green-collar jobs."
The new strategy was broadly welcomed by both sides of industry.
Brendan Barber, TUC general secretary, said: "Its call for a mixed and balanced economy, including a strong manufacturing sector, will be greeted with enthusiasm by unions. We particularly welcome plans for an additional 1,500 apprenticeships and the recognition of the role that public procurement can play in promoting a healthy manufacturing sector. We look forward to a separate low-carbon industrial strategy in 2009."
Martin Temple, chairman of the EEF manufacturers' organisation, said it backed the strategy. "The next step is to deliver and back the positive words with firm actions of intent and support."
The CBI's chief economic adviser, Ian McCafferty, also stressed the need to translate policy into practice. "The government's new framework contains some fresh thinking ... It must now deliver on its plans."
However, there was criticism from the Conservatives. The shadow business secretary, Alan Duncan, said: "While other countries like Germany have been successfully building whole new industries based on low-carbon technologies, the UK has lost over a million manufacturing jobs since 1997, while our green-energy sector remains tiny."