Isra-Mart srl : GE warns ports revamp is "critical" to British wind turbine factory

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Isra-Mart SRL news:

GE, Siemens and Vestas sign letter urging government to retain plans for £60m port upgrade programme.

The UK president of General Electric (GE) has hinted the company may abandon plans for a British offshore wind turbine factory if the Treasury scraps a £60m investment programme intended to upgrade ports.

The warning came as industry trade body RenewableUK yesterday released an open letter signed by a coalition of senior business leaders, unions, MPs and environmental campaigners, calling on the government to retain the funding for port upgrades.

Addressed to Treasury chief secretary Danny Alexander, the letter urges the government to clarify its plans for the funding after reports last week suggested the programme will be scrapped in the comprehensive spending review due to be announced next week.

"We... call on the Government to retain this funding following the Spending Review, in order that UK ports can do their part in creating a new green industry and the thousands of jobs that will follow," the letter states.

"Cutting the funding would play into the hands of more far-sighted competitors and condemn the UK to becoming an importer of one of the fastest-growing low-carbon technologies."

In comments released alongside the letter, Mark Elborne, GE UK chief executive and president, offered a thinly veiled warning that the engineering giant may not continue with plans for a UK factory that could employ up to 2,000 people if the funding is cut.

"Government funding and the development of a suitable port infrastructure are critical if we are to locate our offshore wind manufacturing operations here in the UK," he said in a statement. "We believe that offshore wind offers the UK market a significant opportunity to create jobs for UK employees and to contribute to future economic growth in what will be a highly competitive global marketplace."

TUC general secretary Brendan Barber similarly warned that jobs would be put at risk if the investment is not protected.

"Upgrading our port facilities is a vital piece in the jigsaw of investments for the North East to build and ship massive wind turbines out to the North Sea, " he said. "Our competitors across the North Sea are watching this decision and know that huge employment opportunities may come their way if the UK Government makes the wrong move."

The letter was backed by a number of leading renewable energy firms, such as GE, Siemens and Vestas, as well as several British port authorities, environmental groups and MPs Charles Kennedy, Alan Whitehead, and Tim Yeo.

In a parlimentary debate on ports funding yesterday, energy minister Charles Hendry refused to reveal a final decision on the programme ahead of the spending review, but insisted the government was committed to capitalising on the huge growth opportunities presented by offshore wind.

"Ministers will decide major infrastructure projects within one year, in accordance with the clear policy framework provided by national policy statements," he told ministers in the House of Commons. "That will help to secure the confidence of investors by removing concerns about delay. There has been progress, and we are determined to move forward quickly."