WIREDGOV

Embargoed until 00:01 17 March 2010 - Mandelson: New wave of private investment will renew economy

News Release issued by the COI News Distribution Service on 16 March 2010

Business Secretary Lord Mandelson today marked the first year of the government's strategy to put Britain at the cutting edge of new industrial development.

Launched one year ago, New Industry, New Jobs set out a new approach to active government investment driving economic growth.

This strategy announced the government's intent to support private sector investment in the development of key new industries, especially in the infrastructure and skills they need to meet future challenges and take advantage of new opportunities.

Lord Mandelson said:

"Over the next decade, Britain's economy is going to need a new wave of private sector investment in long-term business creation and job creation.

"This is about making the economy ready for a decade of industrial and economic renewal in Britain. We will need new industrial strengths and we will need to reinforce our position as global leaders in innovative manufacturing and services.

"We are committed to a greener, smarter, even more skilled Britain - one that generates more knowledge and is better than anyone else at turning that knowledge into innovation and economic growth.

"This means not just getting the economy growing again, but asking and answering the big questions about how we are going to pay our way in the world ten years from now - the scale of investment we need from the private sector, in infrastructure and skills, demands that stability and certainty."

Speaking today at the Institute of Mechanical Engineers, Lord Mandelson will be joined by UK Commission for Employment and Skills chief executive Chris Humphries, who announced today's publication of the National Strategic Skills Audit.

UKCES' first ever audit of UK skills sets out current trends and what skills will be needed in the coming years, helping the government and employers plan for growth and ensuring individuals have the right skills to support businesses.

The report recommends focussing support on economically valuable skills in priority sectors; highlights the need for more information for employers and government on where high-value job opportunities will be in future; and calls for businesses to make more use of high-level skills.

Lord Mandelson added:

"I am grateful to UKCES for this groundbreaking report. This gives us the most detailed picture yet of the UK's skills profile and future needs.

"Over the years it needs to develop into the most powerful tool that business and industry have to communicate their demand for the skills they need to government and to the education sector.

"We have already set out our commitment to supporting growth in priority sectors and this Audit reinforces the crucial nature of that work."

UKCES chief executive Chris Humphries CBE said:

"The National Strategic Skills Audit shows that there have been some substantial changes in the labour market over the past decade. In order to operate in this fast-changing environment we need comprehensive market intelligence, showing us which are the really key priorities for future investment.

"The National Strategic Skills Audit is the single best source of that, and will help employers, individuals, and education and training providers to make the best informed decisions possible."

Today, as well as publication of the Skills Audit:

- Lord Mandelson and Business Minister Pat McFadden will visit Sheffield Forgemasters to announce that a conditional offer of a government loan has been made to the company which will see the firm build the largest nuclear accredited steel press in Europe, able to manufacture the largest components vital for civil nuclear power stations.

- The government is publishing a prospectus inviting bids for the Joint Investment Programme, to boost investment in skills in priority sectors. The programme will see up to £50m government investment in the next academic year, matching an equal contribution from the private sector.

- Business Minister Ian Lucas will announce the preferred site for a new National Composites Centre in Bristol, created with £16m funding from the Department for Business and the South West Regional Development Agency. More than 200 leading industry researchers and academic experts will be based at the centre.

- A National Skills Academy for Power to boost energy industry skills has been approved and is ready for launch, with £2.9m investment from the government and £3.9m in cash and in kind investment from EDF, E-On and other industry employers. Energy and Climate Change Minister David Kidney will launch the Academy at E-ON's Engineering Academy at Ratcliff on Soar.

- New National Skills Academies will be created, covering rail engineering; logistics; green building services. And the existing NSA for Process Industries will expand to create new academy hubs for biotechnology and composites. These NSAs will benefit from a combined total of over £12m government investment through the Skills Funding Agency, matched by employers.

- The Learning and Skills Council (LSC) has approved a Tunnelling and Underground Construction Academy in Ilford, London, to be run by Crossrail. The new facility will receive £5m public funding and will develop new courses and qualifications.

- Announcement today of two new Low Carbon Economic Areas, with London chosen with the purpose of promoting energy efficient buildings; and Yorkshire and the Humber becoming a Low Carbon Economic Area for Carbon Capture and Storage.

- The Government's Chief Construction Adviser, Paul Morrell, publishes the emerging findings from his ongoing review into low carbon construction. To see the emerging findings, visit www.bis.gov.uk.

- The government announces that it will co-fund the delivery of up to 1000 apprenticeships per year in the nuclear sector as Cogent, the Sector Skills Council for the nuclear, chemical, pharmaceuticals and oil & gas industries, outlines its government commissioned nuclear skills report. The full report will be published shortly.

- The Higher Education Funding Council for England is earmarking £10m in 2010/11 to incentivise the teaching of science, technology, engineering and maths (STEM) and other priority skills at university. These incentives will be strengthened further from 2011/12 on advice from the Higher Education Funding Council and business leaders.

- The government is today publishing a progress update - Fuelling Potential - on the implementation of skills accounts and the adult advancement and careers service. These services will play a key role in helping individuals make the best informed decisions about skills and careers drawing on labour market data.

Notes to Editors

1. The government will publish a one year update of New Industry, New Jobs on Thursday 25 March.

2. Government and Sheffield Forgemasters International Limited have reached a conditional agreement in principle whereby Government will provide a £80m loan to the company for the building of a 15,000 tonne press and finishing workshop. This will be combined with private finance, including support from Westinghouse. Completion of the deal will be subject to due diligence and to state aid clearance with the European Commission and satisfactory finalisation of funding arrangements with other third parties.

3. Existing National Skills Academies cover industries including Construction; Manufacturing; Nuclear; Enterprise; Retail; and IT.

4. For further information, see www.bis.gov.uk/skillsaudit.

5. The Department for Business, Innovation and Skills published Skills for Growth - the National Skills Strategy in November 2009, which sets out an ambitious vision for giving people and businesses the skills they need to help drive economic growth. The Government will create a modern class of technicians through a dramatic expansion of advanced apprenticeships, creating 35,000 new places over the next two years. For further information, see: http://www.bis.gov.uk/skillsforgrowth.

Contacts:

BIS Press Office
NDS.BIS@coi.gsi.gov.uk