Serious problems with student loans system

Shadow Universities and Skills Secretary, David Willetts, has today written to Lord Mandelson to seek assurances about reports that the student loans system is experiencing serious problems with processing applications.

Just weeks before the first payments are due to be made, many potential students have written to express their concern about inaccurate information, loss of documents and an unresponsive helpline.

These problems are reminiscent of recent Government fiascos over Educational Maintenance Allowance (EMA) payments and national curriculum tests.

The text of the letter is below:

"Dear Peter

I am concerned about the serious problems prospective students are facing in sorting out their financial support before starting university this month. I am receiving letters and emails on a daily basis from students and their parents who are finding it hard to obtain accurate information about their student support applications. The Government set up new arrangements for this year, including replacing Student Finance Direct with Student Finance England, and these do not appear to be working properly. There is a clear and substantial risk that new students will face serious financial problems at the start of the new university term.

Among the problems that people are experiencing are:

• a lack of useful information on basic facts like whether an application has started to be processed;
• insufficient information about the receipt and location of original personal documents;
• repeated website failures and no response from the helpline; and
• an absence of accurate information on their financial entitlement.

Because students need a financial settlement letter in order to start university, the problems look set to affect their ability to enrol at university as well as their financial situation. And those from less well-off households are affected worst of all, as they are entitled to income-related grants alongside the student loans.

Are you aware of these problems? What steps are you taking to tackle them? And are you able to reassure all young people starting university this autumn who applied before the deadline that they will receive their full loan and grant entitlement at the start of the new term?"

Rover report a sorry tale of greed and incompetence - Thurso

"The Government needs to take action to ensure that this type of cynical asset stripping can never happen again," said the Liberal Democrat Shadow Business Secretary. Commenting on today’s publication of the investigators’ report into the demise of MG Rover, John Thurso said:

“After four years of delay and an eye-watering £16m of taxpayers’ money, the lid had finally been lifted on the murky circumstances surrounding MG Rover’s demise.

“This report tells an all too familiar story of greed and incompetence. Former Rover employees throughout the Midlands will be shaking their heads in disbelief at the colossal sums that the Phoenix Four made off with in pay and pensions. The Government needs to take action to ensure that this type of cynical asset stripping can never happen again.

“The one ray of light for those who lost their jobs is that the report’s publication should now unlock access to a fund originally set up for the benefit of ex-employees. Lord Mandelson should immediately establish if this money can now be distributed among workers who lost their jobs.

“The Government’s press briefings at a sensitive time in takeover negotiations were ‘irresponsible’ in the eyes of the inspectors. This is a damning verdict on the pervasiveness of New Labour’s spin machine in the workings of Government.

“It shouldn’t be forgotten that the Government jumped at a £10 bid from an inexperienced consortium, having failed to do proper due diligence. This turned out to be a terrible decision for all involved.”

Ministers do not emerge with any credit from MG Rover report

Shadow Business Secretary Ken Clarke says that questions need to be asked about the Government's role in the MG Rover deal.

Responding to the publication of the report into the collapse of MG Rover, he said that the inspectors "quite rightly" criticise the Phoenix Four and their Chief Executive, "who seem to have enriched themselves at a time when MG Rover workers were losing their jobs".

But, he said, "it is a pity" that the inspectors did not think that the scope of the inquiry enabled them to go more precisely into the Government’s role in the selection of the Phoenix bid.

It is also "regrettable", Clarke said, that they didn't investigate the possible misuse of taxpayers' money seeing as "Ministers put in £6.5m in the middle of an election campaign, to keep the company going beyond polling day".

"Unfortunately this report does not shed enough light on the Government’s undoubted involvement in brokering the deal in the first place and failing to realise that the project was heading for disaster", he added.

"I can understand why Peter Mandelson was so reluctant for this report to come out because it reminds us of this whole sorry episode from which Government ministers do not emerge with any credit."

Government publishes report into collapse of MG Rover

The Government today published the results of an independent investigation into the collapse of the MG Rover Group (MGRG).

The inquiry was set up by the then Secretary of State for Trade and Industry after MGRG, the manufacturer of Rover and MG cars, went into administration on April 8, 2005 owing creditors nearly £1.3 billion.

Business Secretary Lord Mandelson today published the findings and announced that lawyers have already begun work compiling the underlying evidence required to bring proceedings against the relevant directors to prevent them holding company office in future. He also decided the report should be referred to the Financial Reporting Council, the regulatory body for auditors, accounting and corporate governance.

In addition he has today written to the Business and Enterprise Select Committee after the Inspectors found inaccurate and misleading explanations were given to MPs and others, including some evidence given by one of the directors to the Select Committee.

Gervase MacGregor FCA and Guy Newey QC were instructed to investigate the affairs of MGRG, its parent company Phoenix Venture Holdings (PVH) and MGR Capital Limited between the purchase of MGRG from BMW in May 2000 and the date of it entering administration.

The inspectors investigated the actions of the directors of PVH throughout their 5 year ownership - particularly Peter Beale, John Edwards, Nick Stephenson and John Towers, known as the Phoenix Consortium or Phoenix Four.

They also investigated restructuring changes within the Group which led to the creation of 33 separate companies throughout that period; the scale of financial rewards made to the directors and the events which led to administration itself. This included the role of Government to secure bridge finance while take-over discussions took place with Chinese car manufacturers Shanghai Automotive (SAIC).

The inquiry studies the role played by professional advisors including auditors and corporate finance advisers Deloittes and lawyers Eversheds; aspects of corporate governance; and financial statements and audit arrangements including the transfer of assets.

The inspectors also investigated the purchase, installation and operation of computer software to eliminate evidence held by one of the directors, Peter Beale, the day after the inquiry was announced.

The inspectors also looked at explanations the directors had given to MPs and found that Peter Beale gave inaccurate and misleading explanations to the Trade and Industry Select Committee on 30 March 2004 about why the Phoenix Partnership was involved in the MGR Capital joint venture.

Business Secretary Lord Mandelson today said:

“This has been a painstaking enquiry by independent inspectors. It was important to get all the facts into the open so that workers who lost their jobs and creditors who were not paid know the truth.

“Action is being taken. Based on this report, work has been commissioned to start legal proceedings to seek to declare relevant directors unfit to hold office and to disqualify them from management of any company in future.

“I have today written to the Business and Enterprise Select Committee to ask them to look into the serious findings in the report that one of the MG Rover directors, Mr Beale, misled their Committee about the reasons for setting up a joint venture with MGR Capital. It will be for the Committee Chair to decide whether any action should be taken.

“We are also determined to learn any lessons we can to ensure greater transparency about the impact of decisions which directors are making and the state of the companies they are running. To this end, I am asking the Financial Reporting Council to review the report to see whether changes to audit or accounting standards or guidance should be considered.”

The Secretary of State has received advice from independent Queen’s Counsel that the findings made by the inspectors, if supported by the underlying documents, are such that a Court is likely to find that at least some of the Directors are unfit to be concerned in the management of a company. If successful this would lead to these Directors being disqualified from being directors or otherwise involved in the management of the company. Work has already begun on considering the underlying documents and compiling the evidence that would be needed to commence director disqualification proceedings. Thereafter, the usual procedures will be followed.

• The report has been sent to the Accounting and Actuarial Discipline Board (part of the Financial Reporting Council) which is currently investigating the work done by Deloitte’s for the Rover Group. The AADB will review the Inspectors’ report to see whether there are issues which need to be followed up.

• The Inspectors suggested that improvements could be made to auditing and reporting standards that would increase transparency in financial statements. The FRC issued guidance earlier this year to companies and auditors on Going Concern issues in the light of current economic conditions and is currently consulting on updated core guidance on Going Concern. The FRC will now be asked to look at lessons from the Rover case and to consider whether any further guidance should be issued to auditors.

• The Inspectors suggest that although the transfer of assets and tax losses between companies with the Rover Group was in accordance with accounting standards, readers of the financial statements would have been better informed had the “true or potential value of these assets been explained”. They suggest that making such disclosures mandatory would improve understanding of a company’s financial performance. The UK Accounting Standards Board (also part of the Financial Reporting Council) will now be asked to consider the issues raised by the Report.

The report is available at: www.bis.gov.uk/mgrover-report

Lord Mandelson & China’s Premier Advance Business, Climate Agenda

Business Secretary Lord Mandelson, was received by Chinese Premier Wen Jiabao for an hour-long meeting in Beijing today (CST).

Premier Wen praised "the tremendous contribution made by Lord Mandelson in strengthening and deepening EU-China and UK-China relations over many years."

The meeting was very friendly and warm and focused on a number of areas including strengthening co-ordination between the UK and China ahead of the forthcoming G20 Summit in Pittsburgh.

Both sides agreed on the need to keep markets open and resist any temptation to erect barriers to free trade. They were very clear that protectionism was not in the world's interest and agreed on the enormous importance of concluding the Doha world trade talks as soon as possible.

Lord Mandelson, who was accompanied to the meeting by a British business delegation which has been with him throughout his visit to China, also stressed the importance of further work to allow companies to list and invest on each other's Stock Exchanges.

Lord Mandelson and Premier Wen were united on deepening and strengthening co-operation between their two countries, Premier Wen recognising that China now invested more in the UK than in any other European economy and that Britain invested more in China than any other European country.

On climate change Lord Mandelson urged greater co-operation given the importance of December's Copenhagen Climate Change Summit and the business opportunities which flow from the production of green technologies and goods. He also urged China to agree a carbon emissions target. Premier Wen said China would work hard for success at Copenhagen.

In the context of EU-China relations both regretted the lack of progress in relation to Market Economy Status (MES).

Government Invests £340million In Next Generation Aircraft Design And Manufacture

Lord Mandelson today announced that the Government has agreed to support Airbus with up to £340 million repayable launch investment for the development of the A350 XWB

Building on the New Industry, New Jobs agenda as well as our latest advanced manufacturing initiatives announced on 29 July, the support further demonstrates the government’s commitment to the our advanced manufacturing sector, as part of a balanced economy helping to build Britain’s future.

The support, drawn partially from the Government’s £750m Strategic Investment Fund, will enable Airbus in the UK to strengthen its position as a world leader in wing, landing gear and fuel integration systems technologies and ensure the UK plays a leading role in the development of the A350 XWB, as it has done on previous Airbus programmes. This support will create and sustain more than 1,200 jobs within Airbus across Filton and Broughton sites as well over 5,000 within the supply chain across the UK.

Through increased use of advanced composite materials in the construction of the wing and other parts of the aircraft, the A350XWB will be lighter – delivering significant environmental benefits, including around 15% reductions in CO2 emissions - essential to delivering on our low carbon agenda.

Today’s announcement of £340m of support follows on from our commitment to provide £60m of support for GKN to design and develop the rear spar and trailing edge of the A350 XWB.

Business Secretary Lord Mandelson said:

“This agreement is excellent news for the UK aerospace sector and for the thousands of British workers within Airbus and its UK-based supply chain”.

“The UK’s aerospace industry is world-class and capable of competing successfully with companies across the world. We recognise the vital role Airbus, and its supply chain, play in the UK.

“Aerospace is a sector that we are rightly proud of in the UK. It stimulates innovation across industry, demonstrates our capability to work with the most advanced technologies, and provides high-quality, highly skilled employment. It is a sector at the heart of our advanced manufacturing strategy.

“This agreement is further evidence of this government’s long-term commitment to the UK aerospace industry and its future success. Aerospace is one of the UK manufacturing’s crown jewels, and manufacturing is one of the UK economy’s crown jewels.”

Tom Enders, Airbus president and CEO, said

"We welcome the UK government's decision to invest in the A350 XWB, the most advanced, innovative, and eco-efficient aircraft in its market segment. This partnership with the UK government means that the UK taxpayer can expect a sound return on their investment, and ensure the aviation industry continues to thrive in Europe and around the world."

SNP SEEK ASSURANCES OVER ELECTION TV DEBATES

The SNP is seeking guarantees that the party will have a place in any UK-wide TV debate between party leaders ahead of the next General Election. The party’s election campaign co-ordinator Stewart Hosie MP today (Sunday) confirmed that he would be writing to broadcasters to make sure that the party would be part of any UK-wide broadcast.

Mr Hosie said:

“Scotland has a long tradition of party leader debates, and it is high time that we had them at UK level for the next General Election.

“Peter Mandelson has raised the issue again, and although it might have made Gordon Brown choke on his cornflakes when he heard it, the political parties and broadcasters should seize the initiative.

“And the broadcasters must meet their obligations to audiences across the UK – and so that would have to include Alex Salmond’s participation in any election debates involving Gordon Brown, David Cameron and Nick Clegg.

“We are obviously prepared to be flexible about options for the format, but the broadcasters’ public service obligations require them to be fair to their audiences in Scotland, and indeed Wales.

“Both the SNP and Plaid Cymru are now parties of government, the polls indicate we are aiming for substantial success at the General Election, and our voice must be heard. We will certainly be writing to the broadcasters at an early stage about this issue, so that they can be in no doubt about the position.”

Universities Are Central To Economy And Social Mobility - Lord Mandelson Says In Keynote Speech

In his first major speech on higher education since taking responsibility for it under the Department for Business, Innovation and Skills (BIS), Lord Mandelson today outlined his views on the essential issues facing universities ahead of an HE Framework on the future shape of the sector that he will publish later this year.

To an audience of university vice chancellors and representatives from across the HE sector, he emphasised the crucial role universities play in building a stronger UK economy and responded to some of the key challenges of social mobility raised in Alan Milburn’s report ‘Unleashing Aspiration’ on access to the professions published last week.

Ahead of an independent review on university tuition fees due later this year, Lord Mandelson said the central questions around how higher education is funded cannot be separated from the issue of access to a university education for those from poorer backgrounds.

Speaking at Birkbeck College, London, he said:

“Over the last decade we as a country have invested hugely in our universities. We have actively pursued a policy of widening access. We have put knowledge and science at the centre of our vision of our economic future, and protected its funding at unprecedented levels.

“We have instituted a fees system that has, in my view, been a radical and signal success in strengthening the resources available to universities without sacrificing accessibility to students.

“But we are obviously facing an incredibly difficult decade of rebuilding growth and future strengths in Britain. There are tough decisions ahead. Our graduates face the toughest job market for years. And ultimately those big twentieth-century higher education questions are still with us. For what end? For whom? Paid for how?”

Outlining the key role of universities on the economy, Lord Mandelson said: :

“It seems to me that in defining the economic role of universities we come up with a set of linked challenges all of which are tied to the critical role of universities at the heart of a knowledge economy.

“Equipping people as rounded intellectual beings but also giving them the skills they will need in a global economy.

“Turning more of the knowledge that is generated in UK universities into jobs and growth, especially by bringing businesses and universities together to collaborate.

“These are management challenges for individual universities; but they are a strategic challenge for the UK as a whole. The diversity of mission statements and the autonomy of universities in defining precisely how they serve their students and customers is clearly vital. But there is also a need for a collective strategic vision for the sector and its role in our national economic life. That is the balance we will aim to strike in the Higher Education Framework.”

On social mobility and Alan Milburn’s report, Lord Mandelson said:

“A university education remains the gateway to the professions and a ticket to higher lifetime earnings on average. So I think we have to ask: why, for all the work in the sector and all the seriousness with which it has tackled this question are we still making only limited progress in widening access to Higher Education to young people from poorer backgrounds – especially at our most selective universities?

“We clearly need to look again at how, and how early we identify and engage potential candidates for university. I am attracted to the idea of stronger links between the professions, universities and schools - work experience, early mentoring, clearer lines of communication about what preparing for university and a career in the professions means at every stage of secondary education.

“I agree with Alan Milburn that as well as the usual criteria of standardized testing, there is a strong case for using other more contextual benchmarks for talent spotting that look at the way candidates have exploited the opportunities open to them in their lives. Some universities in the UK are using these approaches. There is good evidence that they work. And any Vice Chancellor that takes a broad and innovative approach to identifying talent will have the firm backing of the government.”

Lord Mandelson made it clear that he would not pre-empt the independent review of fees planned for launch in the autumn. He added:

“I do not believe that we can separate the issues of fees, access and student support. Any institution that wants to use greater costs to the student to fund excellence must face an equal expectation to ensure that its services remain accessible to more than just those with the ability to pay.

“Whatever funding mix for higher education we develop, there must always be a link between what an institution charges and its performance in widening access and supporting those without the ability to pay.”

Brown must come clean about cost of rail electrification

Theresa Villiers has welcomed the news that the Great Western Main Line and part of the West Coast Main Line will be electrified - but she said that Gordon Brown is “living in a fantasy land” if he thinks it can come at no cost to the taxpayer.

The Shadow Transport Secretary stressed further electrification of our railways is “an important way to improve efficiency and reduce carbon emissions from transport”.

But she asked, “After Lord Mandelson announced cuts to the transport budget, how can we believe that Labour can announce £1.1 billion of new spending without impacting on existing transport commitments or putting further strain on public finances already stretched to breaking point?”

And she called on Gordon Brown to “come clean about what current transport schemes could now face cuts to pay for today's announcement.”

10,000 extra higher education places to help more students go to university this year

An extra 10,000 places are being made available to universities to support more students going into higher education this year, Lord Mandelson announced today.

The Government will pay the student support costs for full time undergraduate entrants to science, technology, engineering and maths subjects - areas which will equip young people with the skills they need for the jobs of the future.

The Government is taking this action to invest through the downturn and build a stronger Britain at a time when applications to universities are at their highest ever.

Today’s announcement builds on the record numbers of students currently at university and the record number of places on offer.

Business Secretary Lord Mandelson said:

“By making available 10,000 extra places in science, technology and maths we are not only helping more individuals with the ambition and ability to go to university but also investing in this country’s future.

“Our expansion of higher education is more important now than ever as we continue to invest in a highly skilled workforce to win the jobs of the future and lead the way in building Britain’s future.”

The Government will fund financial support for the extra students over the duration of their higher education course. For full time students this includes maintenance grants and loans to cover tuition fees. Today’s funding is in addition to more than £5 billion the Government is already spending on student support this year.

This is a fiscally neutral change - the costs of supporting the extra students will be met through reprioritising existing budgets and reducing the optional five year holiday on repayment of student loans to two years.

This additional funding for student support, which will be reprioritised from within existing BIS budgets, comes after discussions between the Government and the HE sector on managing increased demand with institutions having said they are able to recruit more students without compromising the quality of their offer.

Higher Education Minister David Lammy said:

“In tougher times it is right that we continue to invest which is why we are providing funding today to help meet some of the unprecedented demand to study at university.

“This Government has hugely expanded higher education with 300,000 more students at university than in 1997 supported by a 25 per cent increase in funding over the same period.

“We want to support people with the ability and talent to go to university because it is good for those individuals and the future of our economy.”

Toyota to manufacture full hybrid Auris in the United Kingdom

Toyota Motor Europe (TME) today announced plans to manufacture a full hybrid version of its C-segment hatchback, Auris, at its UK-based facility in Burnaston, Derbyshire.

Production of Toyota’s first European-built full hybrid will kick-off at Toyota Motor Manufacturing (UK) Ltd (TMUK) in mid-2010. Engines will be produced at TMUK's facility in Deeside, North Wales.

The announcement, which coincided with a site visit by UK First Secretary of State and Secretary of State for Business, Innovation & Skills Rt. Hon. Lord Mandelson, underlines Toyota’s commitment to expand its offering of low-emission hybrid vehicles to customers in Europe.

‘With today’s announcement, Toyota has taken a significant step forward in ensuring that full hybrids become more accessible to a wider range of customers. Such efforts are crucial if we are to see more low-carbon vehicles on European roads,’ said Tadashi Arashima, CEO and President, TME.

‘Our decision to produce a full hybrid in the UK reflects both our confidence in the quality and commitment of the TMUK workforce and the strength of our long-standing partnership with the UK Government. Today’s announcement is positive for Toyota, our UK suppliers and the local communities here,’ he added.

Business Secretary Lord Mandelson said: ‘This is a welcome and forward-looking investment in Britain from a world class manufacturer. As part of our low carbon industrial strategy we set out to make Britain the best place in the world to develop low carbon vehicles. These commitments, backed by the formidable skills of the UK automotive workers enable companies like Toyota to invest with confidence in low carbon car production in the UK. It demonstrates that the UK's car industry is already making the low carbon transition.’

The Toyota Auris hit the European market place in spring 2007. Since then, it has sold over 370,000 vehicles. Under the new Toyota Optimal Drive technology, Auris now comes equipped with a 1.33-litre dual VVT-I engine and Toyota’s Start&Stop technology, reducing CO2 emissions by 17% (135 g/km) and improving fuel consumption by 19% (48.7 mpg combined cycle).

TMUK started production in 1992 as Toyota’s first manufacturing company in Europe and today employs around 4,100 workers. The plant has produced over 2.5 million vehicles to-date, including the Carina E, Corolla, Avensis and Auris, for sale in Europe and export overseas. TMUK represents a total investment of over £1.85 billion and is one of nine Toyota manufacturing companies in Greater Europe.

PM BRANDED INCONSISTENT ON NUCLEAR NON-PROLIFERATION

The Prime Minister has been branded inconsistent on nuclear non-proliferation after publishing a written statement today (Thursday) on countering proliferation and reducing weapons arsenals while simultaneously preparing to sign-off £2bn in design contracts for Trident replacement in September.

SNP Westminster leader and Defence spokesperson Angus Robertson MP urged Gordon Brown to rule-out imminent commitments on the renewal of the Trident nuclear weapons system expected to be signed-off during the parliamentary recess.

Mr Robertson said:

“Gordon Brown is totally inconsistent on nuclear arms limitation – he is lecturing the world on non-proliferation while simultaneously planning to pay a two billion deposit on Trident.

“The Prime Minister has even excluded Trident from the Strategic Defence Review as some sacred cow – it is just not credible to exclude a debate on Trident replacement from either that audit or wider international talks on disarmament.

“Any way you look at it - on moral, economic or political grounds - renewal of this nuclear system is untenable.

“Lord Mandelson has admitted Labour plan a decade of public spending cuts, and people will struggle to understand, at a time when budgets are tight across the armed forces and Scotland faces a £500 million budget cut from London , why the UK Government is ploughing billions of pounds into a new generation of unwanted and unnecessary nuclear weapons.

“As we go into the parliamentary recess the Prime Minister must rule out further decisions and spending commitments on the renewal of Trident due to be signed off in the coming months.

“Civil society, trade unions, religious organisations and the Scottish Government are working together to keep a new generation of Trident missiles out of our waters – even military leaders openly question the affordability and rationale of these weapons, and as recent polling shows, the tide has well and truly turned on Trident.”

Strategy For Low Carbon Businesses to Benefit British Jobs

The Low Carbon Industrial Strategy, launched today, sets out the action the Government is taking to ensure that British businesses and workers are equipped to maximise the economic opportunities and minimise the costs of the transition to a low carbon economy.

The strategy follows from Building Britain’s Future: New Industry, New Jobs, and sets out how the Government aims to ensure that the transition to low carbon is a source of quality jobs and business savings in Britain: from our rapidly developing civil nuclear industry and renewable energy sector, to energy saving in our smallest SMEs.

The strategy identifies a range of low carbon sectors with potential for job creation and growth. These include: wave and tidal power; civil nuclear power; offshore wind; and ultra-low carbon vehicles. It also sets out the Government’s strategy for removing barriers that are blocking the development of Britain’s full potential in these areas.

The strategy recognises that local and regional strengths offer a good foundation to realise future economic benefits for Britain. The first Low Carbon Economic Area in the South West of England will create a business and skills focus on marine energy demonstration, servicing and manufacture.

The strategy also sets out the first investments from the £405 million for low carbon industries and advanced green manufacturing announced at Budget 2009. Key investments include:

• Up to £60 million to capitalise on Britain’s wave and tidal sector strengths, including investment in Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast – and other funding to make the South West Britain’s first Low Carbon Economic Area.

• Up to £15 million capital investment in order to establish a Nuclear Advanced Manufacturing Research Centre consisting of a consortium of manufacturers from the UK nuclear supply chain and universities.

• A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities, including support for suppliers for the civil nuclear industry.

• Up to £10 million for the accelerated deployment of electric vehicle charging infrastructure.

• Up to £120 million to support the development of a British based offshore wind industry.

The strategy also recognises that there are challenges for the workforce particularly for those in high carbon industries. The Government will create a new Forum for a Just Transition to advise on how to address the issues, with representatives from Central Government, national, local and regional bodies, Trade Unions, business organisations, and third sector bodies.

Announcing the strategy Business Secretary Peter Mandelson said:

“There is no high carbon future. But if the transition to low carbon is inevitable, what is not inevitable is that we use the transition as a chance to develop new jobs, new industries here in Britain. This strategy builds on the New Industry New Jobs approach, outlining the strategic role the government will play alongside the private sector, to make the most of the potential benefits for innovation, growth and job creation in the UK.

“Low carbon and environmental goods and services are already worth £3 trillion to the global economy, and in the UK employ nearly 900,000 directly and through the supply chain. With the sector set to grow by over 4% per annum over the next six years we must do all we can to support British businesses and workers in benefitting. Today we are announcing the first investments under the £405M funding allocated in the budget. We must ensure that we equip businesses and the workforce with the capabilities and skills to take advantage of the potential benefits as the world moves towards a low carbon future.”

Clarke warns Mandelson has left Royal Mail to "slide into decline"

Ken Clarke has attacked Lord Mandelson’s decision not to go ahead with the planned part-privatisation of Royal Mail.

The Shadow Business Secretary said the Government was “in a state of paralysed indecision on every difficult issue” following Lord Mandelson's announcement of the U-turn.

Ken attacked Lord Mandelson’s handling of the issue, stressing:

“Peter Mandelson said recently that the Government was committed to the policy of part-privatisation and that the Royal Mail was in a crisis.”

“He has frequently said that the status quo is not an option. He is now leaving the Royal Mail to slide into more rapid decline.”

Ken added, “The first reason given for delay was lack of Parliamentary time, which is plainly nonsense. It is now said that market conditions are difficult for a sale. The real reason for delay is that Peter Mandelson cannot persuade his colleagues to back the flagship Bill of his Department.”

SNP COMMENT ON ROYAL MAIL ANNOUNCEMENT

Commenting on confirmation that the UK Government has ditched immediate plans to part-privatise Royal Mail, SNP Postal Affairs spokesperson Mike Weir MP said the proposals should be permanently abandoned.

Mr Weir said:

“Privatisation of Royal Mail should not just be put off for another day, it should be ruled out once and for all.

“By threatening to resuscitate privatisation plans later Lord Mandelson is creating continued uncertainty for Royal Mail workers and customers. The government should focus on ensuring a long term successful future for a public Royal Mail service.

“This humiliating climb-down, hard on the heels of a u-turn on ID cards, shows the UK government is in complete chaos.

“Lord Mandelson can’t even get his story straight on why privatisation was abandoned – first it was because the plans were jostling for space in the legislative agenda, and now it is because the economic conditions are not right.

“The truth is that it was the political conditions that were not right – Lord Mandelson was on a collision course with Labour MPs and unions.

“Royal Mail must remain in public hands and the SNP will continue to fight for the retention of publicly-owned postal services.”

Cameron attacks "relaunch without a price tag"

David Cameron has criticised Gordon Brown’s attempted relaunch for its “lack of honesty on spending” and “lack of real reform of our public services”.

David pointed to Peter Mandelson’s statement that there will not be a Government spending review before the next election, and stressed that it was a “relaunch without a price tag”.

He said that many of the initiatives announced by the Prime Minister - including the Constitutional Renewal Bill and the simplification of immigration rules – were “rehashed”, and others - including the future fund - were taken from us.

David warned that other proposals amounted to “timid and bureaucratic top-down tinkering” rather than real reform, and stressed:

"The truth about today's statement is it only serves to highlight the decline of this Government. Their money has run out. Their political capital has run out. And now their time is running out."

David also attacked Gordon Brown for delaying the second reading of the Royal Mail bill, and offered to give up the Conservatives' Opposition Day Debate to allow it to be heard.

Ken Clarke, the Shadow Business Secretary, stressed the delay to this “urgent” bill showed that Britain has “a dying government, past its sell-by date and needing to be replaced.”

He said, “I do not believe that this delay is anything to do with a lack of parliamentary time, but if it is we would gladly give up an Opposition Day to make way for the second reading of the bill.”

Plaid MP: reversal of Government plans for Royal Mail is a welcome climb down

Plaid Cymru’s Westminster leader, Elfyn Llwyd MP, has responded to Lord Mandelson’s admission that the UK Government will not proceed with legislation to part-privatise the Royal Mail in the near future.

Plaid Cymru MPs have consistently campaigned against privatisation of the Royal Mail as this would threaten the universal service obligation (USO) which ensures that customers in rural areas are not disadvantaged.

Mr Llwyd commented:

“I am very pleased that this plan has stalled. I hope that the Government will now reflect on it and finally dismiss this very bad idea.

“However it has been dressed up, this would have effectively marked the beginning of the end of the Post Office as a public service.

“It was hugely unpopular and unworkable as well. No doubt if it reappears in some other guise, there will be huge opposition again.

“The plan has been shelved because the reality is it would have had a huge amount of difficulty getting through. Failing to get the bill would be an embarrassment for the Government although this is a welcome climb down.

“What it means for Wales is protecting the all important universal service obligation.

This means that people are given the same level of service whether they live ten miles up a mountain or in the middle of a city. Privatisation would have meant the end of that obligation and this would have been exceptionally bad in Wales .”

Mandelson urges New European Commission to be "Europe's Economic Conscience"

Lord Mandelson has argued today that the new European Parliament and next European Commission must be "Europe's economic conscience", pushing European member states to work together to rebuild Europe's economic strength. Mandelson argued that reforming financial markets and rebuilding sustainable economic growth demanded an even greater recognition of the European dimension of economic policy from European states .

Lord Mandelson, who was European Trade Commissioner 2004-2008 and is now UK Business Secretary said: "No matter how badly a downturn might tempt us to think and act in national silos, the next five years will in fact demand an even greater Europeanism from us".

In particular Mandelson said EU state must guard against using the recession as an excuse to "renationalise" parts of the single market, which he said would be "a huge mistake for innovation, enterprise and growth in Europe...Measures that push the state back into running parts of the economy or put the openness of the single market into reverse are a mistake. This crisis should not become a pretext for resurrecting the protectionist and state interventionist arguments that decades of experience has discredited in Europe".

However Mandelson argued that globalisation required that European states be active in equipping people and the European economy with the resources to compete in a global economy . He argued that the next European Commission should lead a debate on how best to do this by benchmarking best practice in education, training, research and development, infrastructure and the social security systems allowing workers to move easily between jobs and adapt to rapid economic change.

Mandelson described a European competitiveness policy "that looks at individual people, rather than individual jobs, the business environment rather than individual businesses and high levels of productivity rather than individual products".

Mandelson proposed that the next Commission should set a targeted agenda of single market liberalization for the goods and services that will be key to Europe's comparative advantages in the years ahead: low carbon goods and services, business and commercial services, network services like broadband and digital communications. He also said that alongside ending the emergency flexibilities in European state aid rules in 2010, the Commission should take an increasingly tough line in enforcing single market rules.

Mandelson's proposals for the next Commission included:

* Setting an ambitious new European target for apprenticeships;

* A radical refocus of the European budget towards investment in research into green innovation;

* A Commission-led audit of Europe's skills needs and a focusing of the European Social Fund spending on training people with the skills of the future;

* Creating a single European patent system with a fast track for green technologies;

* Drawing up a European action plan for ensuring that every home and business in the EU has access to broadband within a few years.

Lord Mandelson strongly endorsed Jose Manuel Barroso for a second term as European Commission President saying that he had spent his first term as President "pushing us to see the reality of our collective European economic future".

(DFID) World Trade Week UK - defending open trade

An early-warning system to help guard against nations turning to protectionist policies during the global recession is launched today as part of the UK Government's ongoing commitment to open trade.

Speaking at an international conference to mark the start of the first-ever World Trade Week UK, Business Secretary Lord Mandelson and International Development Secretary Douglas Alexander said that defending open trade remained the most powerful means of rebuilding global prosperity and fighting global poverty.

Lord Mandelson underlined the UK's commitment to keep global trade flowing as he announced that the UK is co-financing a new independent anti-protectionism watchdog. Global Trade Alert will unite a worldwide network of think tanks to provide governments with independent analysis of trade-distorting policies. It will produce evidence of the damage protectionist policies are doing and advise on the least protectionist ways to provide support and stability to economies through the downturn.

Douglas Alexander demonstrated the UK Government's determination that the poorest countries should be assisted in the global economic downturn as he announced that funding for Aid for Trade has increased to £800 million - an increase of 60 per cent since 2005.

Aid for Trade funding has been spent delivering a range of new projects, such as the North South Corridor which is helping to improve transport and trading links across eight African countries by upgrading roads and improving border crossings.

Lord Mandelson said:

"Calls for protection from imports are always made most loudly during times of recession.

"New barriers to global trade are a sure-fire way to make the global recession longer and more painful that it might otherwise be. Now more than ever, we need to stand firm and defend open trade.

"The Global Trade Alert will complement the work of the World Trade Organisation and others on behalf of the G20, as well as advocating the importance of free trade."

Secretary of State for International Development Douglas Alexander said:

"An economic downturn hits the world's poorest people the hardest and it's therefore more important than ever that we keep international trade flowing at this time.

"World Trade Week UK is an important opportunity to demonstrate how vital trade is in helping people in developing countries to earn their way out of poverty.

"Aid for Trade means that we can help many more people across Africa to have a better opportunity to make a living through trade by improving access to markets, upgrading transport and infrastructure and making borders more efficient."

The Global Trade Alert will complement the World Trade Organisation's G20 commitment to monitor protectionism by providing real-time alerts. The website will monitor not just tariff barriers - which are heavily constrained by WTO rules - but non-tariff barriers and national crisis measures adopted by countries in response to the downturn.

(BERR) Postal Services Bill clears Lords

The Government's Postal Services Bill successfully cleared its third reading in the House of Lords today and will now pass to the House of Commons.

Business Secretary Lord Mandelson said:

"This is an important landmark in the Bill's passage through Parliament. The legislation has emerged stronger following the numerous debates in the Lords and the constructive and helpful input from Peers.

"The Government remains convinced that the huge challenges facing Royal Mail must be addressed by a comprehensive package of reform. Letter volumes are expected to fall by as much as 10% every year as people turn to email and other forms of communication, with each 1% fall costing the company around £70m. The company is also technically insolvent due to its volatile multi-billion pound pension deficit.

"Royal Mail is facing decline and it would be a dereliction of duty if we did not take action to secure the company's future."

The Postal Services Bill has been strengthened by a number of amendments which the Government made in response to the constructive debate in the Lords. These include:

* Clarity that the legislation allows an employee share scheme to be created, provided that Royal Mail remains publicly owned. The Government believes it is important that employees have a serious stake in Royal Mail's success. It wants to discuss this issue with any partner before deciding how best to incentivise performance and deliver value for money.

* A new requirement for the Post Office to produce an annual report on the breadth and accessibility of the Post Office network. This will ensure that transparent information about how accessible the network is, in particular to small businesses, rural communities, the elderly, people with disabilities and other vulnerable groups, is published every year.

* The Secretary of State must report to Parliament on any sale of shares in Royal Mail. The report would be made after any agreement had been signed and set out the objectives and criteria for any sale and if they have been achieved, and the principal terms.

* A new requirement for Ofcom to report on the cost of fulfilling the universal service obligation (collecting and delivering mail six days per week at a uniform price). Ofcom will also have powers to ensure that the price other postal operators are charged by Royal Mail to access its network, including delivery over the final mile, properly reflect those costs.

The Bill now passes to the House of Commons, where it will be debated by MPs in early June.