Archive for the ‘News’ Category

How Britain can make more ‘things’

Posted on: August 2nd, 2012 by Richard Raw No Comments

Now is not the time to panic, but for the private and public sector to invest long term in skills and – preferably green – technology

The finishing touches are added to a Bentley

The finishing touches are added to a Bentley, one of the UK manufacturing brands enjoying an uplift in volumes. Photograph: Christopher Furlong/Getty Images

Data published today has shown that the manufacturing sector shrank at its fastest rate in more than three years in July. Naturally, this is disappointing news, but it is essential we keep our perspective: in 2010 and 2011, manufacturing grew 1.9% faster than the whole economy and the present contraction is much lighter (actually 75% less in scale) than the “great recession” that began in Q4 of 2008.

That should not mean complacency – rebalancing the economy so we make more “things” in Britain is absolutely critical to achieving long-term and sustainable economic growth – but explains why we shouldn’t panic. We need to be aware that confidence is critical to avoid the downturn spiralling into a self-fulfilling prophecy. The worst thing that could happen at this point is that industry stops investing in the technology and skills needed to drive innovation and growth in the UK.

Let’s be clear: in order to rebalance the economy, this country would need to achieve the biggest restructuring in a generation. It will not happen quickly or automatically, and co-ordinated action from the private sector and government is absolutely vital.

So far, I am largely positive about the UK’s plans and activities. But it’s too early to see the real effects – manufacturing generally has stalled because of the pressures of the sovereign debt crisis in Europe, and the marked slowdown in China. The latter exacerbates the problems on the continent because China is a key importer of goods made in Europe. Fiscal policy in the UK is also playing its part reducing demand, and lack of liquidity is still a critical issue for the British supply chain.

But while these are significant headwinds, they are not permanent and there is plenty to be optimistic about in the UK. Domestic demand is surprisingly good, retail sales are up 1.6% year-on-year, and lower inflation is a boost for our sector – and employment is up, which in turn will help boost demand.

We should also be proud that we have some great UK manufacturing brands, for example in car making, Jaguar Land Rover and Bentley – the latter up 30% on volumes in the first six months this year compared with last.

There are also endless opportunities from greening the economy: the renewable technology market will be of immense benefit to UK businesses. The government needs to stay consistent and supportive with subsidies and regulation and must be actively engaged in this market so we reap the benefits in terms of skills, R&D and inward investment and ultimately a strong supply chain capable of exporting in large numbers.

We are encouraging investment in modern and sustainable production technologies which make an important contribution to energy savings and improved productivity, boosting competitiveness – all essential for the growth of our manufacturing supply chain. Our investment in advanced manufacturing catapults – centres of excellence that bridge the gap between business, academia, research and government – are already becoming a great vehicle to support this.

We are supporting technical apprenticeships in higher numbers, which is encouraging, though we should accept that results will take time. Germany, which has been on this journey for decades, invests almost a third more than the UK manufacturing sector in capital plant machinery and automation. Our skills system is not yet up to the challenge of providing the labour required to support enough manufacturing growth in the UK.

We must work harder with the government in programmes encouraging R&D and innovation, in upskilling young people, creating more apprenticeships – so that our sector can grow but also so that we can play our role in reducing the number of young people – currently one million – unemployed in the UK.

From government we need policy consistency and a clear strategy for growth areas, such as offshore wind energy. We need stable policies to support manufacturing that chime with a long-term vision of how we want the UK economy to look not just in five years but 25 years too. I’m pleased that exactly this project has been begun by the coalition and I hope this will be realised into more than just a glossy report.

Action needs to be taken now to make the most of the economic recovery when it arrives. As a country we must invest more in skills and in technology to make our manufacturing sector world beating in terms of knowledge, innovation and productivity – underpinned by a consistent industrial and energy policy from government.

A failure to stay consistent with this action over the next two decades will cost the UK an incalculable amount in lost growth, jobs and opportunities.

Source – The Guardian

Direct Line admit their mistake – a year after the accident and only with help of Daily Mail

Posted on: July 18th, 2012 by Richard Raw No Comments

D. B. of Woodford Green, Essex writes:

More than a year ago, a stolen vehicle crashed into my car while I was driving — I ended up in hospital.
The car hit two other vehicles before the thieves abandoned it and ran off.
The police report states I am not at fault.

Despite this, insurer Direct Line says I am.
It has increased the cost of my insurance and I have lost my no-claims bonus and been forced to pay a £250 excess.

The Traffic Criminal Justice Unit has a two-book report on the incident available to Direct Line.

Direct Line has chosen not to look at this, and has made its own conclusions.
It has even said the police are only giving their opinion and that it knows better, even though there are eyewitnesses.

At 76 years of age, being accused and threatened by my insurer has left me at my wits’ end.
It has even said that the thieves could make a claim against me for up to six years.
The Daily Mail’s This is Money column responds:

I’ve seen plenty of cases where insurers have tried to dodge a claim by relying on small print.
But this is one of the few I’ve ever come across where they have refused to accept solid facts and the word of the police.

To doubt the word of one of their customers is one thing.
But to ignore eyewitnesses and a Criminal Justice Unit report beggars belief.

Direct Line should be thoroughly ashamed of its behaviour. And it is.

It seems that rather than accepting the police version of events, it chose, instead, to rely on the report of a garage engineer, who was not even there!

An embarrassed Direct Line spokesman told me:

“Our investigation has concluded that the service provided to Mr B. was not up to the usual standard our customers have come to expect from us.

“Due to the unique circumstances of this claim, more should have been done for Mr B. to support him after such an incident.”

Direct Line has quite rightly apologised.
It is refunding your excess and amending your policy to show this was a no-fault claim.
It is reinstating your no-claims discount to the same level it was before the incident.
And it is sending you a cheque for £300 as a gesture of goodwill.