Business and Energy Minister Michael Fallon has announced the creation of an Offshore Wind Investment Organisation (OWIO) to boost levels of inward investment and to further stimulate jobs in the UK offshore wind industry.
The OWIO is expected to boost the UK offshore wind industry alongside Government support for three offshore wind innovation projects as well as pave the way for new employment opportunities in the trades.
Energy Minister, Michael Fallon said: “Offshore wind is a major success story for the UK, and we want to boost levels of inward investment. This will be an important part of our industrial strategy for the sector later this year, and we are creating the Offshore Wind Investment Organisation to drive that activity.
“We already have more installed offshore wind than anywhere else in the world, and this brings enormous economic benefit to our shores, supporting thousands of skilled jobs.
“Through the formation of this industry-led partnership and through our support for innovation projects, we will boost the positive benefits that the offshore wind sector can bring to the UK economy.”
The OWIO is one of the recommendations of the forthcoming industrial strategy and will be headed by a senior industry figure. The organisation will be a partnership between industry and Government, established by UK Trade & Investment, that will complement the work of DECC and BIS in delivering the Government-wide offshore investment objectives.
Michael Fallon also announced three innovation projects that Government will support as part of Offshore Wind Components Technologies Scheme:
- Power Cable Services Limited, based in Kent, have been awarded a £540,000 grant towards their high voltage subsea cable jointing technology project
- Aquasium Technology Ltd with partners Burntisland Fabrications Ltd and TWI have been awarded a grant of £769,600 towards their cost-effective fabrication project.
- Wind Technologies Ltd (Cambridge) have been awarded a £728,355 grant to design, manufacture and test an innovative 5MW medium speed drive train concept.
The Minister announced the support during his keynote speech to Renewable UK’s Offshore Wind 2013 conference in Manchester today.
Industry delegates at the conference are also able to attend the first ‘Share Fair’ session enabling them to hear about investment opportunities from major players in the market. This addresses one of the priorities identified by the offshore wind industrial strategy partnership between Government and industry.
What is your reaction to the Government plans to boost levels of inward investment and create new jobs in the UK offshore wind industry? Share your thoughts by commenting here or raise your voice on our Facebook and Twitter pages.
The pilot scheme will help small and sole trader construction businesses to secure credit from B&Q and Screwfix stores that will allow them to bid for bigger construction projects in the future.
Customers of B&Q TradePoint and Screwfix, part of the Kingfisher Group, can now apply for a credit account of up to £25,000, where previously they may have struggled to secure credit due to a lack of security or adequate credit history. Existing trade customers will be able to apply to extend their accounts for credit of up to £50,000.
Previously, these viable businesses would only have been eligible for credit of up to £3,000 from Screwfix or B&Q, making it harder for them to take on projects due to being unable to afford the upfront costs of the materials. Kingfisher is able to support the additional lending as a result of it being backed by a government guarantee.
The pilot is the result of work between the government and Kingfisher to adapt the existing Enterprise Finance Guarantee scheme to widen access to funding and provide alternatives to bank lending. Business Minister Michael Fallon will now be writing to other companies offering them an opportunity to take part in the pilot scheme and offer their customers access to this new source of finance.
Business Minister Michael Fallon said: “Builders and tradesmen are experiencing a real bottleneck when it comes to accessing credit, and projects are being held up unnecessarily. This pilot is an innovative attempt to make a real difference for the sector.
“Britain’s builders have a vital role to play in delivering growth in this country and we’re determined to get behind them.”
Ian Cheshire, Group Chief Executive of Kingfisher, said: “By piloting this new scheme we are backing Britain and backing the country’s professional tradesmen.
“Access to credit and control of cashflow is vital for smaller tradesmen, so we are pleased that Screwfix and B&Q will be able to make it easier for more of their trade customers to get credit through this innovative new scheme. By backing Britain’s tradesmen we can boost spending on the home and help get the economy moving again.”
The pilot allows Kingfisher to give credit to trade businesses it would normally have to turn away, by sharing the risk through providing government guarantees of 75 per cent on its lending. As well as allowing Kingfisher to lend to viable businesses outside its present risk profile, the scheme also allows it to lend more to existing businesses.
The pilot has been designed so there is no new administrative burden to Kingfisher. All credit decisions will be made by Kingfisher based on existing processes, and customers and frontline staff will see no difference to the trade credit application.
Deputy Prime Minister Nick Cleg has announced an investment of £1 billion under the Regional Growth Fund which will kick-start 130 projects across England.
The Government has estimated that today’s latest round of spending could create 240,000 jobs, many of those in the building construction industry.
The fund will help manufacturing firms, small businesses and local partnerships to expand their operations, create new jobs and stimulate economic growth.
Deputy prime minister Nick Clegg said: “This £1 billion boost for growth in towns and cities across England is creating jobs that will last in the parts of the country that need it most.
“In tough economic times the Regional Growth Fund is good value for taxpayers’ money – this £1 billion round of the fund is pulling in £6 billion of private sector investment.”
CBI chief policy director Katja Hall said: “The Regional Growth Fund is helping to meet businesses’ needs for growth capital up and down the country, enabling the successful companies to get projects off the ground.”
Commenting on the new initiative, business minister Michael Fallon, said that this is a significant investment which will help different sectors and provide strong economic boost for businesses across the country.
Mr Fallon said: “The selection process has been very fast – from companies applying to allocating funds in only five months.
“So we are keen to get a move on which is why this time, those selected have now only three months to agree final offers, and three months to complete due diligence. We want to ensure good value for the taxpayer and to get these projects started as soon as possible.”