Job fears overshadow cash pledge

THE Government has “upped its game” to try to convince energy giant Siemens to build a wind turbine manufacturing plant on the banks of the Humber, according to Business Minister Mark Prisk.

Mr Prisk said he was “very hopeful” a deal will be agreed soon and rejected any claims that Ministers were not doing their bit to secure the plant, which could create thousands of jobs in Hull and the surrounding area.

Speaking as he unveiled a £170m package to boost UK manufacturing including money for new equipment at South Yorkshire’s Advanced Manufacturing Research Centre, Mr Prisk also admitted the threat of 900 job losses at BAE Systems in Brough, East Yorkshire, was a “blow” but said the Government is acting.

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The announcement came amid gloomy figures which showed that the manufacturing sector shrank for the third month in a row in August, adding to evidence that the wider economy is stagnating.

Ministers have been criticised for not being active enough in convincing Siemens to build the plant, manufacturing turbines for offshore wind farms, at Alexandra Dock in Hull rather than in Germany or Denmark.

A memorandum of understanding signed by Siemens, site owner Associated British Ports and Hull City Council has expired, although there is speculation it could soon be renewed and the Government insists it has been striving to do what it can to get the deal signed.

Asked whether he was convinced the deal will go through, Mr Prisk said: “I’m very hopeful but I’m always wary of going ahead of myself in the sense of when the deal is done. You don’t say anything until you’ve got it.

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“I’m pretty hopeful that will succeed and we should have some news soon. Competing for international investment has got a lot tougher in the past few years because there’s a lot less of it. Every country is working hard. We’ve had to up our game and that’s fine. That’s the way it should be.”

With Ministers keen to promote manufacturing to stop the economy’s over reliance on financial services, Mr Prisk announced that the Government will provide £140m over six years to the first Technology Innovation Centre (TIC), designed to boost research and development in advanced manufacturing.

It comprises seven UK facilities including the Advanced Manufacturing Research Centre (AMRC) and the Nuclear Advanced Manufacturing Research Centre (NAMRC) in Rotherham.

The money will help expand the capability of the AMRC by funding new equipment to help with the manufacture of precision components for the next generation of aircraft. At the nuclear research centre the funding will be focusing on the machining, fabrication and assembly of components for new nuclear power stations.

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The Government also announced that £30m will be made available in competitions to develop low emission vehicles and to develop products inspired by new discoveries and breakthroughs such as biosciences.

Meanwhile Mr Prisk insisted the Government has “moved quickly” in the wake of the BAE jobs threat.

He said the Government was helping avoid skills being lost overseas by aiding workers find other jobs, although he has not given up on some posts being saved. Ministers have also agreed to create an Enterprise Zone for the site to offer tax and business rate incentives to get other manufacturers in if it closes.

“I don’t want to pre-empt the consultation but equally I don’t want to wait until it happens and then decide what to do. That’s why we’re making sure we’ve got some personal help in play for them but also thinking about how could we bring this facility back into use? It has to be commercial in the end.”

Comment: Page 12.