Memorandum by EEF—The Manufacturers'
Association—North of England (DRA 23)
BACKGROUND
EEF—the manufacturers' organisation—is
the representative body for engineering, manufacturing and technology-based
business in the UK. EEF has four associations with around 2,000
members in the North of England.[26]
There have been fundamental and substantial changes to the UK
manufacturing sector in recent years but its importance remains
central to the future prosperity of the North of England. Manufacturing
drives research and innovation throughout the economy of the regions
with productivity that is typically 25% higher than other sectors.
Manufacturing is the regions' key wealth creator.
While each of the three regions of the North
East, North West and Yorkshire and the Humber have specialisations
and concentrations of business sectors, the contribution to regional
GDP is consistently above the national average at around 25%.
EEF estimates indicate that employment in the sector is over 1
million.
EEF POLICY ON
ELECTED ASSEMBLIES
IN NORTHERN
ENGLAND
Across the region, EEF associations have a long
history of engagement and dialogue with the public bodies that
affect the environment for the business of their members. The
evolving debate around regional constitutional issues has been
of concern and remains one to which EEF is keen to contribute—indeed
we feel we have a key role to play in a number of areas.
EEF has seen this debate reflect the desire
of people within regions to advance their wishes for a greater
degree of autonomy. We have made comprehensive and evidence-based
responses to the process of consultation on elected regional assemblies—however,
these have had an all England basis to date. With the decision
now in place to allow the three Northern regions of England to
undertake a referendum on assemblies later in 2004, this paper
sets out to review and update our position through and with the
members and representatives of EEF in those regions.
Our key objective is to articulate the concerns
of our members and to highlight the main issues of concern for
manufacturers. We do not have a political or dogmatic objection
to the proposals for elected assemblies. However, following substantial
research and surveying among our membership on this issue we remain
sceptical but not dismissive of the benefits for business. We
are therefore keen to remain engaged with the key bodies and processes
as they develop from policy proposals through to implementation.
THE KEY
ISSUES
There are a number of key issues with which
we feel regional assemblies may potentially add value in terms
of promoting manufacturing in the North of England. These are
outlined below but are not prioritised—following discussion
and research with a large number of our member companies we feel
that priorities will differ across regions.
A business-led approach
We believe that it is essential that assemblies
strive at all times to be business-focused in their approaches
to policy, to decision making and to operational matters. The
focus must be absolutely clear and in our view this should be
directed to improving regional economic development. As such business
people and representative bodies must play a key role in management
at a strategic level. A business approach should be evidenced
by management that is lean and cost effective in all areas as
well as speedy in decision making. Replication of effort and initiatives
must be avoided and proactively addressed—as another layer
of bureaucracy, any assembly could be quickly dismissed and ignored
by business people.
EEF has been a consistent supporter of the Regional
Development Agencies. In each of the three Northern regions we
have been engaged with the RDAs to support their programmes and
results are beginning to show. Whilst we understand the arguments
for scrutiny and accountability at regional level, any structures
put in place must allow the RDAs to retain their business-driven
agenda and approach.
A voice for the region—and the North of
England
EEF believes that regional assemblies have a
potentially key role to play in terms of lobbying and advocacy
for the region—both within each region and more broadly
in external terms. Within the three regions there remains a confusing
proliferation of business support programmes and schemes with
replication not only common but costly. Assemblies have the potential
to rationalise this support—in some cases drawing key players
together, in others banging heads together. At regional and sub-regional
level, partnerships and alliances of the public and private sector
can deliver results and should be given better support.
EEF also feels that the establishment of regional
assemblies gives external relations a better focus. There must
be a case for reviewing where a "Northern consensus"
that can be reached will better articulate calls for support—in
inward investment and relations with European and International
bodies.
Innovation and universities
The universities and other academic establishments
of the North of England must be central to regional economic development.
Their roles in facilitating technology transfer, encouraging research
and development and innovation, producing graduates and spinning
out businesses make them a crucial component in manufacturing
success. Too frequently, however, there is a fault line between
a region's manufacturers and a region's universities, with each
scouring the world for partners when they could well have just
what they need on their doorstep. Action is needed at regional
level to bring people together. The recommendations of the Lambert
review form a useful starting point for this.
Joining up the skills agenda
Huge sums of money are spent in each northern
region on skills but manufacturers consistently put genuine skills
gaps as a top concern. There are too many bodies with responsibility
for dispensing or overseeing skills funding, and their priorities
are dictated from the centre rather than the region. There is
no single developed regional driver of the skills agenda and real
engagement from the business community remains poor at best. Manufacturing
skills policy should be regionally led within a national framework.
It is important to review initiatives in this area and to seek
to replicate the best of practices that are around in the UK and
internationally.
Transport—regional autonomy
After skills, the barrier to success most frequently
cited by northern manufacturers is the transport infrastructure.
EEF supports the fact that the current unelected regional assemblies
are responsible for producing a regional transport strategy. However,
the realisation of each strategy is largely dependent on decisions
made at national level. EEF sees a strong case for trusting regions
to make their own decisions on transport infrastructure where
appropriate.
Planning—a better business focus
If manufacturers are to grow, and new manufacturers
are to be attracted to a region, an adequate supply of the right
land and property at the right price is vital. This will be in
place only if the planning system allows it. EEF is currently
playing a full part in development of the new Regional Spatial
Strategies by the unelected regional assemblies, and supports
their continued preparation in the regions. However, the business
voice in this work is small compared to that of local authorities.
Priority should be given to finding ways of enhancing business
influence on this key area of work.
26 EEF North West, EEF Northern, EEF Sheffield and
EEF Yorkshire and Humberside-details on regional responsibilities
may be found at www.eef.org.uk
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