INTERVIEW: industry may lose support with Brown

10 May 2007 16:09  [Source: ICIS news]

By John Baker

 

LONDON (ICIS news)--Industry could lose support and its voice within government when Gordon Brown takes over from Tony Blair as prime minister, the UK’s Chemical Industries Association (CIA) said.

 

Brown is widely expected to take the leadership role by the beginning of July after Blair on Thursday announced he would leave Downing Street on 27 June.

 

The current chancellor is tipped to make an early mark - recent press reports suggest he and ministers are already considering moving responsibility for energy from the Department of Trade and Industry (DTI) to the Department for Environment, Food and Rural Affairs (Defra).

 

This would seriously weaken the DTI or possibly even presage its demise.

 

“It does not matter if the DTI name continues [or not] but at cabinet level we need someone shouting up for business,” said Steve Elliott, chief executive of the CIA.

 

“We would not like to see the DTI energy arm merged into Defra.”

 

The association and other industry bodies have already lodged their concerns with the cabinet office, pointing out that industry would be best served going forward with a champion within the cabinet.

 

They need someone, he argued, to support policies on skills, science and innovation, and energy, which are key concerns for the competitiveness of the UK chemicals industry.

 

Elliott said he particularly felt there needed to be a healthy tension between energy and the environment in terms of government policy and ministerial oversight to ensure that industry, a large energy consumer, did not lose out to the government’s strong green lobby.

 

This was especially so in the development of carbon trading and emissions reduction, where previously the DTI had argued industry’s case on allowances and implementation of the EU’s Emissions Trading Scheme (ETS).

 

The CIA was also keen to ensure industry was listened to on the need for adequate new nuclear electricity generation capacity and natural gas storage capacity in the UK, to safeguard energy security in the future.

 

Elliott said he had lesser concerns on skills and innovation, however, as initiatives were already underway, such as the new Skills Academy, which will be in place by the end of this year.

 

This will support skills development in the chemicals, pharma and plastics sectors, largely at blue collar level.

 

Also, Elliot added, funding for science and education has had strong support from Blair and former science minister Lord Sainsbury.

 

A review of science policy is now underway and findings will be reported to Brown. But Elliott said the signs were supportive and the funding budget was not expected to be squeezed.

 

By: John Baker
+44 20 8652 3214

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