Memorandum submitted by Semta
SUMMARY
— We believe there are many innovative
companies who are excluded from the programme due to the turnover
criteria. Automotive companies involved on low carbon investment
projects, including component and supply chains, are to be found
at every level of size and turnover.
— Those companies which are excluded have
expressed concerns regarding issues such as the propagation of
traditional funding streams, the sometimes chequered record of
large companies in terms of support for lower emissions vehicles,
and the potential "deadweight" of the funding going
to projects which were not at risk, even in the downturn.
— We make some recommendations for further
development of the programme to form part the holistic approach
to a low carbon economy. The recent Budget provides the opportunity
to link such programmes into a coherent whole, with traditional
companies and those in new areas working together.
SEMTA SUBMISSION
INTRODUCTION
1. Industry owned and led, Semta aims to
increase the impact of skilled people throughout the science,
engineering and manufacturing technologies sectors. We work with
employers to determine their current and future skills needs and
to provide short and long term skills solutions, whether that
be training and skills development, or campaigning with government
and other organisations to change things for the better. Through
our labour market intelligence and insights from employers across
our sectors, we identify change needed in education and skills
policy and practice, and engage with key industry partners and
partners in the education and training sector, to help increase
productivity at all levels in the workforce. The sectors we represent
are: Aerospace; Automotive; Bioscience; Electrical; Electronics;
Maintenance; Marine; Mathematics; Mechanical; Metals and Engineered
Metal Products. Semta is part of the UK-wide network of 25 employer-led
Sector Skills Councils.
2. Our submission to this inquiry is drawn
from those companies in our footprint which are in the automotive
sector, and their views on how the AAP is being administered.
THE EFFECTIVENESS
OF THE
PROGRAMME
3. Companies which are accessing the funding
are glad of the opportunity it offers to enable them to continue
their low carbon programmes. They are committed to developing
the next generation of vehicles, which will safeguard their commercial
future, as well as contributing to the low carbon aspirations
of the government and population. Companies across the sector
(both benefiting and non-benefiting) welcome the speed of the
response to help them safeguard this key area of research for
the industry as a whole.
4. There is however a view among non-benefiting
companies that some of this research was well established in the
large companies, and that the additional funding is not actually
safeguarding or preserving much activity which was at risk.
COMPANY ELIGIBILITY
5. Those companies not eligible for the
funding, due to their size, have expressed some concern that those
who are benefiting are companies which traditionally receive government
support. Given the focus on innovative low carbon investment,
they are disappointed that smaller companies, which are developing
exciting new technology in this area, are not able to access the
funding.
6. The benefiting companies are also perceived
to have a chequered record in terms of low carbon products. Smaller
companies, set up specifically to investigate and develop green
alternatives to traditional engine manufacture, are excluded from
the programme, and feel the large companies are benefiting from
support to compete with their research.
OTHER SCHEMES
IN PRACTICE
7. Semta is currently working directly with
79 automotive companies through its Compact activity in England.
The enthusiasm of the sector for the "offer" now available
through Compact has already led to automotive companies accessing
training which will lead to 16,000+ Level 2 qualifications and
2,500 qualifications at Level 3. They were delighted with the
announcement of additional funding for training which was made.
It is imperative that this funding is fully available going forward.
Automotive companies wish to upgrade the skills of their workforce
in order to meet the challenges of manufacturing the vehicles
which low carbon projects will develop.
RECOMMENDATIONS FOR
THE FUTURE
8. We strongly recommend that effective
measures are put in place to establish the "additionality"
of the projects in the scheme. This should not only look at how
the project has achieved its aims, but how/if it can be sustained.
It will mean establishing the sustainability of outcomes, feeding
into the wider activities to be funded under the latest Budget,
for example.
9. Placing the programme in proper context,
with other initiatives such as the Technology Strategy Board funding
for projects, and Knowledge Transfer activities, will maximise
the benefits across the economy. Encouraging collaborative ongoing
research, linked into further and higher education, will provide
a sound technological basis for the next generation of vehicles.
It will also ensure the next generation of scientists and engineers
are ready for the technological challenges of a truly low carbon
economy.
May 2009
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