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Tax aid urged for industry hit by recession
TAX incentives to encourage investment would help to save manufacturing jobs during the economic crisis, Sheffield's Master Cutler claimed yesterday.
Martin Howell predicted that many manufacturers would struggle during the first half of 2009, despite sterling's weakness providing a boost for exports.
Some of South Yorkshire's major steel plants are taking an extended Christmas holiday – three weeks instead of two – due to the tough trading conditions.
Although some manufacturing companies' order books are reflecting pre-credit crunch trading conditions, Mr Howell described the overall level of demand in South Yorkshire as "patchy".
As Master Cutler, Mr Howell is the official spokesman for South Yorkshire's steel and manufacturing industries.
He is responsible for lobbying Government and highlighting problems, such as red tape, which are stopping South Yorkshire's manufacturers from expanding.
Making his predictions for the first quarter of 2009, Mr Howell said: "We have a few companies who are shrugging off the worst effects of recession in their markets.
These are specialists, producing materials or components which have a long lead time and require detailed certification.
"Others, unfortunately, are affected by severe downturns in, for instance, the motor industry and are already beginning to feel the effects of what can be quite sharp inventory reductions."
He urged the Government to devise a long-term plan to help manufacturing cope with the recession.
Mr Howell, a former director of steel firm Corus, said: "Having rescued banks and other financial institutions, and attempted to increase consumer spending, we should now be giving much more thought to encouraging the undercurrents of industrial recovery, perhaps through careful choice of state investments in infrastructure.
"Plans to help companies finance more and better retraining, as well as significant tax concessions on business investment, would also be of help during this difficult period.
"It would also help to start to rebalance the economy, given our current over-dependence on the financial sector. It's not all bad but there are some tough times ahead for the next six months."
He said at the consumer end of the market, the first quarter of 2009 was likely to be poor and the second quarter could be even worse.
But he also predicted that the second half of the year would offer more export opportunities.
Mr Howell believes the Government should only step in to rescue companies that have a long term future.
He added: "By this time next year, the shake-out will have happened. In 2010 prospects should be starting to improve."
Although he expected to see some adjustments within South Yorkshire's manufacturing industry over the next few months, he believed companies would be keen to keep skilled staff for when the economy improves.
Role with roots in history has wide-ranging relevance today
Martin Howell nthe retired former director of the UK steel producer Corus, was installed as Master Cutler in October.
The Company of Cutlers in Hallamshire was established by an Act of Parliament in 1624 to ensure high standards of workmanship in the cutlery industry, which dominated manufacturing in the Sheffield region at that time.
It also monitored training standards and conditions of work for apprentices and registered company trade marks.
Hallamshire was on the boundary of the ancient Anglo-Saxon shires of Northumbria and Mercia. It is broadly the same area as South Yorkshire.
The purpose of the Cutlers' Company, which now includes all manufacturing industries in Sheffield and South Yorkshire, is "to support and promote manufacturing industry through the public platform occupied by the Master Cutler".
The company has around 400 freemen from which 33 members are appointed.
The members form the governing body of the company from which the Master Cutler is elected for a year of office.
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Saturday 11 February 2012
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