Training, skills and transport challenges for politicians
21 April 2005

As the General Election looms, CBI Director-General Sir Digby Jones has urged party leaders to go public in recognising the contribution that business makes and do more to help with raising skill levels.

Sir Digby was guest speaker at the West Midlands Evolution Breakfast, held by Liquidity Limited, the Birmingham-based sales finance company.

"References to business are few and far between in this consumer facing election "he said.

"I challenge the politicians to embrace business and more openly recognise the role it plays in paying the bills; they need to say how they are going to improve education and training.

"Like the rest of the UK, the West Midlands benefits from an economy which is responding well to the opportunities and threats of globalisation.

"We have transformed our manufacturing sector to one where design and value added content, not price, are the vital factors. Despite the occasional setback or gloomy prediction, we continue to benefit financially and structurally.

"Dramatic rises in demand from China have pushed steel prices higher but we have been able to withstand this assault on our cost base.

Introducing Sir Digby, Liquidity's David Totney remarked on how smaller, dynamic businesses had taken centre stage in the wake of the shrinkage of industrial giants with plants in the region."

Sir Digby points out that the future will not be plain sailing. "In relation to improving skills, the West Midlands - and the UK generally - are behind the game. There are 3.5 million adults in this country who can't read properly and computer literacy is below par.

"In future, there will be few if any jobs for totally unskilled people. Globalisation takes no prisoners and if we do not have the right skill levels, we will fall back" he said.

Sir Digby, a member of the MG Rover taskforce and the chairman of the group set up to help the dealer network, points out that there is a bright spot amid the gloom that has descended on the West Midlands since the demise of MG Rover.

"Probably 4,000 of those who have lost their jobs at Longbridge have skills, and there are already signs that there are real demands for their expertise.

"That is not to belittle the scale of what has happened at Longbridge. Indeed, the fact that £40 million was taken by top management out of a business which was burning its way through £600 million of cash is appalling.

"The real problem was that MG Rover had suffered from a lack of investment and could not compete in productivity terms with the UK plants of global manufacturers.

"Nothing is gained by the government propping up ailing businesses. Where help is needed is in improving skill levels and stimulating investment - and as fast as possible."

Sir Digby cited the transport infrastructure of the West Midlands as being the other problem to be tackled urgently. "Money spent on transport in the West Midlands benefits the whole country, for geographical reasons" he said.

"If we can do something about skills levels and the transport network, Birmingham is in a fine position to reinvent itself, as it has done so many times. We need the politicians to be talking about these issues and putting them on the table now."

Ends

Issued by Quantum PR plc on behalf of Liquidity Limited

Further information:

Edward Carter/Claire Maule Quantum PR plc 0121 633 7775