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News Release from: Manufacturing Technologies Association
Edited by the Engineeringtalk Editorial
Team on 30 January 2004
Developing confidence requires action -
now
Paul Maynard, President of the Manufacturing Technologies Association delivered this message at MTA's Annual Dinner last week at Grosvenor House in London.
Paul Maynard, President of the Manufacturing Technologies Association delivered this message at MTA's Annual Dinner last week at Grosvenor House in London Speaking to an audience of guests from industry, Government, press and academia, as well as member companies from the manufacturing technology sector and their customers, Maynard reflected the feelings of all those in manufacturing saying: "Gordon Brown may have been bullish in his pre-budget speech, but it is hard for business people to have the same confidence when the orders do not seem to be there
Sometimes, listening to the Chancellor, you feel like you are a character in Alice in Wonderland with nothing as it really seems and the world you are living in being absolutely nothing like the economy he is talking about".
The President spoke of the main background to the current decline in manufacturing: "This lack of investment in manufacturing is due to the lack of confidence and MTA has provided the Treasury with charts and figures, which conclusively show that the UK's performance is lagging well behind our major international competitors, and not just for the last few years but for the last 40 years.
This slow decline means that every time we have a major recession we never get back to the peaks that we have previously enjoyed".
However, his address was by no means downbeat: "Confidence is the key to a recovery in the manufacturing sector and MTA, together with other manufacturing groups, consistently call on the Government to help create this vital ingredient - confidence".
"We are working with our colleagues in other Associations, such as EEF and the CBI, to persuade the Treasury about these points; we recognise we still have a long way to go, but, it was encouraging in the pre budget report that there were some small signs that the Chancellor was addressing our concerns.
However, we would still prefer capital allowances to be extended to 100% in the first year for plant and machinery for SMEs, rather than just extending the current 40% definition.
This would be the sort of positive message to manufacturing to boost confidence at this critical time".
Maynard also spoke of the closer relationship with the DTI and its efforts to help manufacturing companies through bodies such as the MAS, and RDAs: "MTA has recognised that although we may not have agreed initially with the delivery of business support in the regions - it is here to stay.
We must try to understand it and work with it".
He continued: "We have been pleased that in various documents, starting with the 'Manufacturing strategy', and including the recent 'Innovation review', the DTI's analysis of the problems facing UK manufacturing is not so different from our own, or other colleagues in the manufacturing sector".
The President then concluded: "We have looked at the problems, we have looked at what the Government is doing and we have looked at what is required, but please remember that words are easy, but developing confidence requires action - now".
The guest speaker at the dinner was the Rt Hon Sir Malcolm Rifkind KCMG QC, who delivered an entertaining account of his experiences in Government.
Sir Malcolm spoke of the relationship between government and industry - how manufacturing can, to a degree, help itself, but how too much government intervention can stifle competitiveness.
However, he went on to suggest ways in which the government could help using fiscal intervention - using the tax system to help manufacturing.
He gained the audience's approval by asking if there was a way in which the Government could provide more encouragement for students from all backgrounds to go into engineering and applied sciences.
He also spoke of the burden of increasing regulations on manufacturing industry and of the importance of the defence industry to the manufacturing capability of the UK, which is dependent on government and public spending.
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