Turbine firm slams slow Ministers

Roland Aurich, chief executive of Siemens for the UK and north-west Europe, said an announcement on the amount of public subsidy available for the offshore wind sector must come in the next two months to trigger investment in the UK’s stalled energy sector.

More than two years have now passed since the German manufacturing giant announced plans for a £210m turbine factory at the Port of Hull, expected to create well over 1,000 jobs directly and along the supply chain.

But the firm has still not made a final decision on whether to proceed, amid concern within the energy industry about the Government’s failure to set out precisely how much subsidy – known as the “strike price” – it will offer investors in the years after 2017.

Asked what he would most like to see in the Budget this month, Mr Aurich said: “For our own business, it’s absolutely to create certainty – the policy ... to get going on some of the investments.

“There are negotiations ongoing about strike price for the new offshore wind (farms)... If Government can showcase that next month, or at the latest the month after that, that will trigger investment in the UK market.”

Mr Aurich said the British market was “getting more certain” following the publication of the Government’s Energy Bill last year.

But he added: “It’s about long-term investment. Investments related to infrastructure are typically not shorter than 25-30 years.

“If a policy framework doesn’t allow us to predict how that framework will look after four or five years, then it is uncertain.”

Mr Aurich was also critical of the Prime Minister’s decision to announce a referendum on Britain’s membership of the EU, if the Conservatives win the next election.

Describing Mr Cameron’s pledge as a “political statement”, he said: “My reaction would be it creates unnecessary uncertainty in a place and time when we need certainty.”

Mr Aurich stressed he was not talking specifically about his own firm, however, adding: “Britain stays attractive for Siemens”.

The chief executive was speaking at the EEF manufacturing conference in London yesterday, where Shadow Chancellor Ed Balls added his voice to the concern about the Government’s lack of direction on energy policy.

“Where we need a long-term strategic direction, I still see too much drift and confusion, indecision and short-termism,” the Morley and Outwood MP said.

His comments were also echoed by manufacturers from Yorkshire.

Stephen Wright, chairman of the Bradford Chamber of Commerce, said: “What would help is some sort of definite decision on energy strategy. They’re messing around terribly, and I think we should all really be concerned.

“I looked at an opportunity recently for a business to go back into Hull, and frankly I won’t make a decision until there’s some real vision as to what we’re actually doing.”

Craig Naylor, managing director of Wetherby-based tool repair specialist NTR, added: “The contracts on offer are not insignificant, and would certainly support companies of our size. But if these bigger guys don’t have the confidence, that isn’t going to be realised. It trickles all the way down.”

Ian Peacock, director of Leeds-based motor manufacturer ATB Morley, said he shared concerns about the uncertainty created by Mr Cameron’s speech on Europe.

“I think there ought to be a clearer view from the Government,” he said. “You wonder if they’re just trying to combat UKIP. It’s a bit short-termist.”