Tata calls on government to champion foundation industries
1 min read
The boss of Tata Steel's European operations has called for urgent action to nurture Britain's foundation industries with the appointment of a single minister to champion the sector in the government, and for the creation of a level playing field on key issues such as energy policy.
The call from Tata Steel Europe ceo Karl Koehler comes after a report highlighted the contribution the sector makes to the UK and the damaging effect the financial crisis had on this strategically important sector of the British economy.
The report by PricewaterhouseCoopers (PwC) said urgent action was now is needed to support recovery and help foundation industries capitalise on the economy's return to growth.
Mr Koehler said a single point of focus in government was needed to nurture and expand industries which include metals, chemicals, glass and cement.
He warned: "This report ['Understanding the economic contribution of the foundation industries'
] makes clear how important foundation industries are to the UK. Much of the cutting-edge innovation seen in parts of British manufacturing and construction in recent years wouldn't have been possible without home-grown foundation industries working hand-in-hand with them.
"If the government is serious about rebalancing the economy and creating sustainable jobs in the regions, it must recognise the importance of the UK's foundation industries. We're not asking for hand-outs but we deserve a level playing field and an equal seat at the table."
Business secretary Vince Cable, who was at the report's launch alongside Koehler, said: "Industries like metals, chemicals and glass make a significant economic contribution and help drive the success of high-performing sectors like the car industry.
"The government is investing in hundreds of projects to get our economy going from the National Infrastructure Plan to our £2.6 billion flagship economic plan to create jobs outside of London — the Regional Growth Fund.
"Many of these projects require high-quality steel and other materials. The government's industrial strategy is giving business the confidence to invest in delivering skilled jobs, driving growth and building a stronger economy."
Terry Scuoler, chief executive of EEF, the manufacturer's organisation, added: "I hope ministers will give careful consideration to this report because manufacturing and the wider economy is in many respects reliant on our foundation industries. If, as a result of high energy costs or other burdens, they become uncompetitive we will see more of them disappear from the UK as emerging economies thrive. It is not realistic to think we can exist without these industries which would be a disaster for the UK. The government must act to support this vital part of our infrastructure."
