8 A competitive and sustainable electrical
engineering industry
| (31111)
15461/09
COM(09) 594
| Commission Communication: For a competitive and sustainable electrical engineering industry in the European Union
|
| Legal base | — |
| Document originated | 29 October 2009
|
| Deposited in Parliament | 11 November 2009
|
| Department | Business, Innovation and Skills
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| Basis of consideration | EM of 27 November 2009
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| Previous Committee Report | None
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| To be discussed in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
|
Background
8.1 In May 2009, the Competitiveness Council identified the electrical
engineering industry as one of the keys to a strong industrial
base within the Community, and the Commission has now produced
this Communication suggesting how the sector's potential can be
realised. In doing so, it has taken into account a report[24]
produced in 2008 by Electra (a high level group involving industry,
trade unions and the Commission), as well as the European Economic
Recovery Plan.
The current document
8.2 The Commission notes that electrical engineering is one of
the biggest industries in the world, with products ranging from
simple consumer goods to highly sophisticated industrial equipment,
and that there are some 200,000 companies involved within the
Community, mostly small and medium-sized enterprises (SMEs), employing
around 2.8 million people, and with a total production of €411
billion (accounting for 10% of Community exports). It also points
out that the Community ranks second in world production after
China, and is second in terms of value added after the United
States.
8.3 The Commission says that the European industry's
future depends upon exploiting the high growth potential of particular
markets in areas such as energy supply infrastructure, energy-efficient
buildings, transport networks, industrial production and the development
of smart technologies, and it has sought under the following headings
to identify how this might be achieved, whilst at the same time
contributing to the Community's climate change objectives for
2020.
Research development and innovation
8.4 The Commission says that, because financial institutions
tend to be cautious about investing in projects involving SMEs,
the industry lacks access to research funding, and that, although
there are a number of Community schemes supporting research and
innovation, these need to be better coordinated in order to increase
cooperation between SMEs and research institutions in areas such
as promoting intellectual property rights and technology transfer.
It notes in particular the potential role in this sector of the
European Enterprise Network, the European Technology Platforms,
and the Strategic Energy Technology (SET) Plan.
Supplying and maintaining skills
8.5 The Commission notes that the sector's development
is hindered by a shortage of engineers and other highly skilled
personnel designing and producing advanced technologies. It suggests
that in the short term Member States need to set up or intensify
training schemes to retain and upgrade the necessary skills in
anticipation of economic recovery, whilst in the longer term the
challenge is to secure a supply of highly qualified and well educated
workers with the right combination of skills. It notes that, with
this in mind, the Community is promoting new policies, including
the New Skills for New Jobs initiative, flexicurity, lifelong
learning, and e-skills, and that it is currently exploring the
feasibility of setting up Europe- and sector-wide skills and employment
councils to encourage information sharing and exchanges of good
practice. It also points to the importance of involving the social
partners in developing a highly educated workforce, and the need
through the newly launched European Partnership for Researchers
to reduce the barriers to the mobility within the Community of
researchers and other highly skilled people.
Tackling climate change and energy efficiency
8.6 The Commission notes that the industry is a key
producer of efficient and environmentally friendly technologies
which, in contributing to meeting the 2020 climate change targets,
can also boost its future competitiveness and worldwide technological
leadership. It suggests that the best approach is to target energy
efficiency across all market segments, but it identifies four
main areas where it can already make an impact —
power supply, industrial applications, transport, and buildings.
It says that it is mainly for the industry to develop and improve
products in order to trigger market take-up, but that public authorities
need to provide the appropriate framework by removing regulatory
obstacles, raising awareness, mobilising financial assets and
instruments, activating market forces, and fostering technology
development. It adds that, despite the current economic crisis,
the public and private sector investment needed will need to be
given a high priority, and that the Emissions Trading Scheme can
help to boost the sector's competitiveness as a producer of technologies
limiting emissions of carbon dioxide. In particular, it suggests
that state revenues from that Scheme might be a major source of
co-financing after 2013.
Coping with societal needs
8.7 The Commission says that the industry has wide
scope to develop the innovative technologies needed to cope with
societal needs arising from an ageing society, such as the development
of reliable and quick healthcare systems, building infrastructures
for ambient assisted living, and a greater emphasis on security.
Internal market and standardisation
8.8 The Commission says that the internal market
greatly facilitates the movement of electrical appliances, and
that recent measures to create a new legislative framework for
the harmonisation of legislation relating to products should make
it easier for the electrical engineering industry to market its
products. It adds that it intends to draft by the end of 2010
a proposal on the obligations of economic operators and the role
of notified bodies. It also notes that standardisation is a prerequisite
for workable Community rules, and that voluntary standards and
technical specifications supplement the requirements of Community
law: in particular, it suggests European standards organisations
can help to spread new technologies, and should continue to produce
the standards necessary to facilitate market take-up of energy-efficient
and environmentally friendly systems and products.
8.9 The Commission concludes by suggesting a number
of specific actions. These include the need for industry
to step up its R & D efforts, to invest in automation and
ICT, to adopt voluntary agreements on energy performance where
this will deliver policy objectives faster, and to develop harmonisation
in intelligent home control systems; for utilities to proactively
upgrade electricity grids allowing the integration of a varied
portfolio of generation and equipment to reduce energy demand
and carbon dioxide emissions; for Member States to facilitate
new trans-national energy connections, including underground power
cable systems, to foster solutions which boost consumer take-up
of energy saving technologies, and to ensure that products put
on the market comply with the applicable legislation; and for
the Commission itself to assess the need for standardisation
work to help implement other legislation[25]
on energy efficiency, to continue to support the International
Standards Organisation (ISO) energy management model to provide
a recognised framework for building energy efficiency into management
practices, and to launch an assessment of how to improve the safety
of electrical installations in building, whilst increasing their
energy efficiency.
The Government's view
8.10 In his Explanatory Memorandum of 27 November
2009, the Minister for Competitiveness at the Department for Business,
Innovation and Skills (Mr Stephen Timms) says that, subject to
their not cutting across the current approach to the provision
of smart metering, the Government supports the planned actions
from the Commission, and welcomes the fact that the overall approach
takes account of the relative responsibilities for industry, Member
States and the Commission, its main objective being to ensure
that the UK industry benefits from the Community's policies and
financial programmes.
8.11 That said, he comments that there are no direct
policy actions which need to be taken as a result of this Communication,
because the UK is already working closely with the Community in
a drive to implement environmental policies in the sectors concerned,
and that his Department has introduced policies which complement
those set out. These include the New Industries, New Jobs Strategy
(to ensure that businesses are equipped to compete successfully
in the global economy following the economic downturn), a Low
Carbon Strategy (targeting investment to provide help for businesses
and households), an Advanced Manufacturing Strategy (providing
£150m to help manufacturers seize opportunities provided
by emerging technologies), Skills for Growth (ensuring that the
UK has the skills required for industries in high technology,
low carbon and more high-value added sectors), and Higher Ambitions
(a higher education blueprint for providing the nation with the
high level skills needed to remain competitive). He also lists
a number of other policies being pursued across Government addressing
the specific actions which the Communication recommends Member
States should take.
Conclusion
8.12 Although this Communication relates to an
important industrial sector within the Community, the measures
proposed by the Commission have a familiar ring, and appear to
be very much in line with the approach being adopted within the
UK. Consequently, whilst we are drawing the document to the attention
of the House, we see no need to withhold clearance.
24 Twenty solutions for growth and investment to 2020
and beyond. Back
25
Such as the Eco-Design Directive, the Energy Labelling Directive,
and the Eco-Label Regulation. Back
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