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Aerospace Industry
Mr. Collins: To ask the Secretary of State for Trade and Industry what meetings he had to discuss the aerospace industry during his recent visit to the United States. [56477]
Mr. Battle [holding answer 26 October 1998]: My right hon. Friend the Secretary of State for Trade and Industry takes a close interest in the aerospace industry. His recent visit to the United States however focused on computing, information technology and new media, emerging technologies, and biotechnology and pharmaceuticals. He also discussed inward investment issues. Aerospace issues were not discussed on this occasion.
Mr. Collins: To ask the Secretary of State for Trade and Industry what assessment he has made of the strategic and industrial implications of a merger between British Aerospace and DASA of Germany; and if he will make a statement. [56474]
Mr. Battle: As my right hon. Friend the Prime Minister has made clear since his statement with the German and French Heads of Government on 9 December last year, there is an urgent need to restructure the aerospace and defence industries in Europe.
It would be for companies themselves to come forward with any specific merger proposals, which would be subject to consideration by the appropriate competition authorities in the usual way.
Mr. Collins:
To ask the Secretary of State for Trade and Industry what assessment his Department has made of the scale of US Government support for the research and technology efforts of US aerospace companies; if he will take measures to match this proportionately; and if he will make a statement. [56467]
Mr. Battle
[holding answer 26 October 1998]: The most recent information available from NASA indicated that its office of aeronautics had a budget of over $940 million for civil aeronautical research and technology. In addition, other US Government bodies provide significant support to the research and technology efforts of US aerospace companies. My Department examines these figures and, with our European partners, has regular discussions with the US Government about levels of such support.
No decisions have yet been made about detailed DTI budget allocations in future years.
Mr. Dalyell:
To ask the Secretary of State for Trade and Industry what steps his Department has taken to ensure that trade unions are fully consulted in
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compensation negotiations for Scottish miners for (a) occupational respiratory diseases and (b) vibration white finger. [57577]
Mr. Battle:
We have been keen at every stage to consult with all appropriate bodies and their agents, including the relevant trade unions, in negotiations relating to claims for compensation by miners throughout the United Kingdom, including Scotland, in respect of occupational respiratory diseases and vibration white finger. The solicitors acting on behalf of the National Union of Mineworkers (Scotland Area) have had regular communications from our claims handling agents, IRISC. This is in addition to the information which we understand those solicitors have received from plaintiff's organisations and Steering Groups in England and Wales who are meeting direct with my officials and IRISC on a regular basis.
Mr. Dalyell:
To ask the Secretary of State for Trade and Industry what steps his Department has taken to (a) supervise, (b) monitor and (c) facilitate negotiations relating to compensation for Scottish miners for (i) occupational respiratory disease and (ii) vibration white finger. [57576]
Mr. Battle:
We have, following the recent test case litigation, in England and Wales, in relation to both occupational respiratory disease and vibration white finger, been closely and continuously involved with our claims handling agents, IRISC, in respect of a broad range of complex medical and legal issues arising out of the respective judgments, in relation to claims submitted on behalf of not just English and Welsh claimants but also Scottish claimants. We have instructed our Scottish solicitors to represent our interests in relation to Scottish claims. They and IRISC have been instructed to keep the National Union of Mineworkers (Scotland Area) fully informed of the progress of the negotiations in England and Wales. The intention is to secure as quickly as possible efficient handling arrangements for the prompt, consistent and fair resolution of claims submitted on behalf of all miners in Scotland, England and Wales.
Mr. Jenkins:
To ask the Secretary of State for Trade and Industry how many people are employed in the car industry in the West Midlands. [57131]
Mr. Battle
[holding answer 29 October 1998]: According to the 1996 Census of Production, some 80,000 people in the West Midlands are directly employed in the automotive industry. This figure includes those directly employed by vehicle manufactures and those in the supply chains.
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Mr. Jenkins:
To ask the Secretary of State for Trade and Industry if he will make a statement on the prospects for the motor industry (a) nationally and (b) in the West Midlands. [57132]
Mr. Battle
[holding answer 29 October 1998]: Overall prospects for the industry remain buoyant. New car sales in 1998 are expected to total 2.2 million, the highest figure this decade. New investments announced so far this year total £1,550 million with 4,000 new jobs created in the last 6 months alone.
The recent launch of the new S-type Jaguar involves a £400 million investment in the West Midlands with 1,300 new jobs. Two other new models also launched at the Motor Show last week, and manufactured in the West Midlands, are Peugeot's new 206 model and the R75 from Rover. These new models will be key to the future of the motor industry in the region; all have been well-received.
Mr. Jenkins:
To ask the Secretary of State for Trade and Industry what new measures he proposes to assist the motor car industry (a) nationally and (b) in the West Midlands. [57133]
Mr. Battle:
With £1.55 billion of new investment and over 4,000 new jobs created so far this year, the car industry in the UK remains strong. It is not this Government's intention to single out any specific sector for special measures. Instead we are putting in place policies to build a stable economy capable of sustaining steady growth with particular emphasis on raising productivity and controlling inflation. This will benefit all sectors.
However, maintaining and enhancing productivity are a constant challenge for the industry. Companies have been working to put in place competitive practices and to deliver models which customers want to buy. Rover in particular is looking at these issues again in an effort which involves close and ongoing discussions between the management and workforce in the West Midlands. We will maintain a close interest in their progress.
Mr. Opik:
To ask the Secretary of State for Trade and Industry (1) what plans his Department has to change the current bidding system for gaining a non fossil fuel obligation contract; and if he will make a statement; [57977]
Mr. Battle:
This Government propose to undertake a new and strong drive to develop renewable energy sources in line with their manifesto commitment. To this end, I have commissioned a review of policy including considerations of what would be necessary and practicable to achieve 10 per cent. of UK electricity needs from renewables by the year 2010 and how renewables can make an effective contribution to meeting requirements for future greenhouse gas reduction commitments.
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That review is considering both support mechanisms for renewable energy, such as NFFO--and including the current bidding system--and the development of the green electricity market in the UK as well as the links between Government support and market development.
My Department has also recently issued a public consultation paper on the future of gas and electricity regulation, entitled "A Fair Deal for Consumers--Modernising the Framework for Utility Regulation", which is considering a number of wider issues affecting the electricity industry, including proposals on the separate licensing of supply and distribution. My Department will be consulting on how the NFFO might be adapted to such new circumstances.
A number of companies operating in the green electricity market now developing outside the NFFO arrangements already offer a green premium to small renewable power producers generating from a number of renewable energy sources.
Mr. Opik:
To ask the Secretary of State for Trade and Industry (1) what measures his Department has taken since 1 May 1997 to encourage the generation of power using (a) onshore and (b) offshore wind turbines; and if he will make a statement; [57975]
Mr. Battle:
As a first step in the Government's new and strong drive for renewables, I announced the fifth and largest Non-Fossil Fuel Obligation (NFFO-5) Order on 24 September 1998 of 1177 MW. This includes 36 projects, comprising 28 MW of contracted capacity from the special band for small wind turbines which is of particular interest to individuals or communities.
My current review of renewable energy is considering the contribution each renewable energy source could make, including onshore and offshore wind energy, the barriers to deployment and the measures which may be necessary to overcome them, and the need for research, development, demonstration and dissemination. I expect to make an announcement about the Review later this year.
In the meantime, my Department's New and Renewable Energy Programme continues to support a wide range of research projects related to wind energy and geared mainly towards onshore deployment, stimulated by successive Orders under the Non-Fossil Fuel Obligation. The Programme has also funded a series of studies related to community involvement in and development of renewable energy schemes and has produced a useful guide entitled "Community involvement in renewable energy projects--A guide for community groups". My Department has also worked with Triodos Bank towards the successful launch of the Wind Fund.
Also in September this year, I took a major step towards generating electricity from offshore wind by launching a consultation document on arrangements for incorporating the development of offshore wind energy into the Non-Fossil Fuel Obligation Order (NFFO) process. Current work on offshore wind, includes monitoring the development of the first offshore wind
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NFFO project, at Blythe, and assessing the commercial opportunities for UK manufacturing industry within the offshore wind arena.
(2) if his Department will introduce measures to allow the payment of green electricity subsidy payments to small wind power producers outside the non fossil fuel obligation scheme; and if he will make a statement; [57978]
(2) what plans his Department has to provide financial assistance to individuals and communities for the erecting and running of wind turbines; and if he will make a statement. [57976]
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