The long threatened reorganisation of ‘manufacturing’s ministry’ finally came to pass on June 28 as new Prime Minister Gordon Brown abolished the Department of Trade and Industry and put in its place the Department for Business, Enterprise and Regulatory Reform (DBERR).
The new department's primary role will be “to lead work to create the conditions for business success, through competitive and flexible markets that create value for business, consumers and employees; and working across Government and the regions to raise levels of productivity,” said a statement.
EEF the manufacturers' organisation gave a strong welcome to the re-organisation and welcomed John Hutton as the new Secretary of State.
EEF had argued that the DTI could not simply be disbanded with its functions spread around other government departments. It supports the retention of the majority of its core functions with the addition of Better Regulation which, it says, is key to successful enterprise.
Retention of responsibility for energy was particularly welcome, it said.
Director General, Martin Temple, said: "The simple abolition of the DTI was always a non-starter without something better in its place. We now have a beefed up department which retains essential elements of the old with the key addition of Better Regulation."
The CBI also welcomed the structural changes with its Director-General Richard Lambert saying it was “an imaginative re-shaping of the structure of government”. The new Department’s brief would ensure that it was able to champion the competitiveness agenda in critical areas of policy including energy, employment and regulation, he went on.
John Hutton would provide the strong voice in the new Brown Cabinet that business was seeking, added Lambert.
The DBERR takes over policy responsibilities for productivity, business relations, energy, competition and consumer policy, corporate law and employment regulation and will have joint responsibility with the Department for International Development on trade policy, and with the Foreign and Commonwealth Office on trade promotion.