Master Cutler's call for an industry minister

THE incoming government must appoint a minister for manufacturing to help lead Britain towards sustained economic recovery, the Master Cutler urged yesterday.

James Newman said that while South Yorkshire's manufacturing businesses had survived the worst of the recession, companies in the region need to see a sea change in government attitudes towards the industry.

Speaking at a media briefing in Sheffield, Mr Newman said: "What they want is to have a stable government that understands from a cultural perspective that manufacturing is one of those areas that's going to create some growth in the economy.

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"The debt will not be paid off by cutting costs. It's a classic business situation – you don't pay a huge overdraft by cutting costs. The more sustainable way of doing it is by creating wealth through growth.

"We need politicians to understand that. We will only get growth through investment. Investment will only come through capital allowances and other forms of incentives to get businesses to invest.

"Let's have a minister for manufacturing. I want somebody that understands manufacturing (who would say] 'yes this government is serious about manufacturing'."

During the lunch at Cutlers' Hall, the heads of two South Yorkshire manufacturing companies spoke about the impact of the ongoing political uncertainty on their businesses as the region emerges from recession.

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Charles Turner, managing director of Sheffield-based Durham Duplex, which manufactures machine knives and industrial razor blades, said 2010 is better than 2009 but "people are holding their breath to see what happens next".

He said a stable government is vital for exporters. Mr Turner added: "Every time the currency drops it costs me more." This has hit profitability in fixed price contracts negotiated in the last year. The knock-on effect means less money is available for investment in research and development and new machinery.

Craig McKay, a director at Evenort, a Dinnington-based metal processor, said despite the fact that confidence is returning, fluctuations in the price of materials caused by instability in financial markets makes it difficult to plan ahead on projects.

He is in talks with the government about support for a 500,000 investment in machinery. He said: "All grant systems are on hold because of the election. We are playing a waiting game. We will have missed opportunities along the way. We will remain successful, but perhaps to a slightly lesser degree."

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Mr McKay said the government should recognise that manufacturers "are key players in generating wealth" and offer assistance either through reducing taxes or providing grant funding.

Mr Turner said: "The South Yorkshire region has a very important role to play because it is the part of the economy which takes a raw material and turns it into a finished product which is sold on. We are making money, as opposed to flipping it around like a lot of the services sector.

"Whichever government comes in, don't tax us out of existence. Let's continue paying our VAT, National Insurance and PAYE. Let us use our profits to reinvest for the future."

A testing time for employees

It is a myth that children are not interested in manufacturing, according to the managing director of a family-owned Sheffield manufacturing business.

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Charles Turner said school pupils do want to find out how things work, but he warned that education standards can leave a lot to be desired.

His company, Durham Duplex, has had to ask some younger employees to take maths tests before carrying out packing assignments.

Mr Turner, who makes machinery knives and industrial razors, said he looks for young recruits who can turn up on time, read, write, listen and do basic maths – and show a willingness to work.