 The next Prime Minister has been asked to give personal backing to business support. In a newly published report EEF, the manufacturing and engineering organisation, has called on the next Prime Minister to give a personal commitment to maintaining key business support functions in a single government department responsible for driving the productivity agenda and promoting economic growth. Commenting on the proposals and the future of the Department of Trade and Industry (DTI) Alan Hall, EEF northern director, said: "The issue of how best Government can support business and promote economic growth is far too important to be periodically kicked about from pillar to post. "Whilst the status quo is not sustainable, the increasing speculation is damaging both to business and to the DTI itself. "This year will see a major change in the UK's political landscape. "There is now a persuasive case to put in place a single government department within a modern Whitehall structure with the responsibility of promoting economic competitiveness." In the report EEF argues that it is too simplistic to abolish the DTI completely and split its functions into other departments. The DTI has four core functions which are interlinked and have clear synergies between them. The EEF describes those functions as trade promotion, fair markets (covering competition and business regulation), business support and science and innovation. They go on to claim that all of these will all have to be carried out somewhere in Government and say that economic analysis suggests they will be more effective when grouped together. However, EEF Northern also believes that the current system, where there is often overlap with the Treasury in promoting economic growth, is not sustainable. They say this causes confusion and leads to the DTI being seen as of marginal importance. In response, EEF is proposing three key priorities: 1. A single Government department responsible for the overall co-ordination of strategy and delivery of the productivity agenda which includes the current five core functions of the DTI. EEF say this could be the DTI, Treasury, or a new department which specifically focuses on economic growth and productivity and is distinct from the management of the nation's finances. They add that less important than the name of the department is the fact that it must be represented at senior level in the cabinet. 2. A single department for infrastructure which would include responsibility for energy, transport and planning. EEF claim that there are clear synergies between these functions which are a vital component of economic performance. They say they could be grouped together in a single department taking a strategic approach to infrastructure policy and that this would have a clear remit for promoting economic growth and engaging with business. 3. A commitment across government to the promotion of competitiveness. EEF says that this should be entrenched in the PSA targets or business plans of all government departments that take decisions which affect the competitiveness of business. To underpin this EEF believes that these departments should follow best-practice models employed elsewhere in government in terms of stakeholder engagement. Specifically EEF believes that each needs a dedicated interface for engaging with business. Mr Hall commented on the proposal to establish a new infrastructure department. He said: "Bringing these functions together, along with planning, into a single infrastructure department could provide much needed focus to addressing the crucial challenges of improving the UK's infrastructure." Mr Hall said this restructure should also play well on the regional stage. He added: "It should streamline and simplify the interface between regional agencies, such as the RDA, and their workings with central government." In the context of improving the local support to business Mr Hall welcomed the new Business Link North East, and the proposal to go for MAS Plus, an enhanced support service to the manufacturing sector in the region. In its review EEF also considered moving responsibility for skills to the DTI or its successor. However, it concluded that skills should stay in Department for Education and Skills given the importance of the relationship between skills and education, but say both must have a strong relationship with business. --------------------------------------------------------- About EEF * EEF Northern has more than 450 member companies in the North-East of England and provides the most cost effective legal, employment law, employee relations and HS&E advice and training in the UK. * EEF Northern employs teams of HR and employment specialists and has access to more than 60 lawyers and barristers to help its members understand the issues associated with ever-increasing legislation and regulation. * Membership of EEF Northern gives immediate unlimited access to the team of specialists - including the largest specialist employment law team in the UK, which provides professional no-nonsense advice and guidance either by telephone or in person. * In addition, EEF represents the interests of its members at UK government, European and international level, and can provide advice and support on issues and legislation that can affect almost every aspect of business. * Visit www.eef.org.uk/northern for further information. | 
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