Government cancels Forgemasters' nuclear press loan
Share
The coalition government announced today it will be axing £2bn worth of projects, including a loan that would have helped a British engineering firm build steel components for next generation nuclear reactors.
Chief Secretary to the Treasury Danny Alexander told parliament that Sheffield Forgemasters would no longer be granted a £80m loan that was promised by the Labour government in March this year to help buy and install a 15,000-tonne forging press for developing large steel components for next generation nuclear reactors.
The capability to make such components on an industrial level is only available at Japan Steel Works.
Graham Honeyman, chief executive of Sheffield Forgemasters, said the announcement was a disappointment.
‘Today’s government announcement to overturn the loan offered to Sheffield Forgemasters’ plans to install a 15,000 tonne press is a huge disappointment to all at the company,’ he said in a statement.
‘While the press would have placed the company at the forefront of civil nuclear manufacture, it is important for us now to focus on other elements of the company’s development.
‘The government clearly has a remit to reduce spending and cut the economic deficit and it is for them to decide how best to do that. Sheffield Forgemasters will continue to develop its significant involvement into civil nuclear, thermal and hydro power generation markets and seek other ways to develop the business.’ Read our article about the project here.
The coalition government’s decision to cancel the loan for Sheffield Forgemasters comes a day after energy minister Charles Hendry told energy companies at the Nuclear Industry Forum that future nuclear power stations would be built with only private sector funding.
Unions have today accused the government of taking a position that will harm the UK’s future low-carbon economy.
‘This is terrible news for the region, as well for the wider prospects of new nuclear build in the UK,’ stated Mike Graham, national secretary for nuclear union Prospect. ‘It’s ironic that this government should move so fast to attack a measure so important to progressing Britain’s move to a low-carbon ecomomy.’
Unite, Britain’s biggest union, has called the move ‘a colossal error of judgement’.
Derek Simpson, Unite joint general secretary, said: ‘This is an appalling decision because it denies UK manufacturing the opportunity to become a supplier on a global scale. Every other country in Europe sees the value in supporting its industries and jobs.’
Business secretary Vince Cable confirmed that several key programmes supporting innovation and low carbon technology would go ahead.
These programmes include the £2.6m Bristol and Bath Science Park, £12m for the International Space Innovation Centre in Harwell, £75m for the Discovery Research Ship, £11.5m for the National Renewable Energy Centre (NaREC) Offshore Wind Blade Test Site in Blyth, £18.5m for the NaREC Offshore Wind Turbine Test Site, £12.4m for Offshore Wind Demonstration and Development and £30m for Offshore Wind, Mitsubishi Collaborative R&D.
Most popular
-
Magnetic recording method could speed up hard drives
-
Retrofit improves valve actuation efficiency at Dutch water treatment plant
-
Plessey acquires Cambridge University spin-out CamGaN
-
System uses photosynthesis to produce efficient solar energy
-
Wind farms, female engineers and Thameslink under the spotlight
Readers' comments (8)
N. Washington | 17 Jun 2010 7:29 pm
I saw this coming ...
Here is correspondence I sent to your colleague Mr Excell, earlier.
Dear Mr Excell,
The article above, written by yourself titled, Sheffield Forgemasters' nuclear ambition was indeed a potential light at the end of the tunnel for british engineering and manufacturing.
Unfortunately, after reading the headlines on today's bbc news website (June 17, 2010) .. it would now appear that 'The light at the end of the tunnel has been switched off ...for economic reasons'.
Sheffield Forgemasters anticipated £80m loan to help expand it's capability has been axed by the government.
Does anyone have any suggestions as to how british industry will survive?
.. nuff said.
Unsuitable or offensive? Report this comment
Iain M | 17 Jun 2010 8:57 pm
The Sheffield Forgemasters decision is so short sighted it is unbelievable.
When the next generation of nuclear power stations has not been built, and the lights are going out in the UK, we will know who to blame.
So much for rebalancing the economy away from banks...
Shameful.
Unsuitable or offensive? Report this comment
Dave T | 18 Jun 2010 1:23 pm
Well what else would we expect from a Conservative-led coalition? I can remember the 1980's when Thatcher ripped the guts out of our industries to allow banks and supermarkets take up some of the slack. This is a world leading company that has been dumped on from a great height. I just hope thay can maintain their skill base. What's the next thing to fall foul?
Unsuitable or offensive? Report this comment
Douglas Hynd | 18 Jun 2010 2:59 pm
Lack of engineers, lack of designers, lack of apprenticeships, lack of jobs in general so what does our new goverment do, yes thats right knock the heart out of a potential world leading manufacturer. Lets go back in time to Thatcher's vision of Britian.
Look out Scotland and the North
Unsuitable or offensive? Report this comment
John KENNEDY | 18 Jun 2010 4:15 pm
The government can't afford a loan to Forgemasters to keep Britain in front with technology? A LOAN, paid back with interest, creating jobs for taxpaying workers to boost the failing economy. We can't compete with the third world economies when it comes to mass manufacturing so where do we go from here? Oh yes lets go red, sorry it's now green, spending millions buying unproven wind farm technology and then still have to buy our nuclear power stations from overseas suppliers at extortionate prices and 'dubious' quality/safety.
P.S. Let's not confuse Thatcher's refusal to support old subsidised failing industries with the current 'naive' cabinets' refusal to suport new profitable growth industries, they are not the same, don't let the argument be swayed that way.
Finally( tongue in cheek) can we pass a law that says politicians must have spent a minimum of 10 years after 'Uni' working in industry and learning the real world prior to entering politics!! (maybe not so tongue in cheek?)
Unsuitable or offensive? Report this comment
| 18 Jun 2010 4:32 pm
Why take a 80m debt now when we can have an 800bn debt with Japan in a few years time.Sorry for the sarcasm. Perhaps the "Bank's' we 'sort of own' should invite an interest free loan based on a 0.5% return of sales fee, I think that may be the sort of long term investment in these high tech area's that most would understand and show that a British 'Bank' and this British government does believe in this country and it's "customers"
Unsuitable or offensive? Report this comment
Gus Luna | 19 Jun 2010 6:36 am
The government would rather ïnvest" in additional entitlement programs - no upgrading of capabilities and high tech skills required. Feed the serfs, and buy from foreign vendors with long term technical objectives, not to mention great profits in this "high-end" manufacturing. The U.S. is "copying" the UK's social agenda priority and not the high end jobs - as the OBAMA socialists want to "make the rich pay" the little people - with "hand out programs" and not professional career employment.
Unsuitable or offensive? Report this comment
Peter Lovegrove | 21 Jun 2010 11:12 am
I wonder if it up to central government to loan money to private companies. The last government bailed out numerous banks with taxpayers money whilst failing to extract any commitment from them to lend money to businesses.
I believe the chancellor should exert considerable pressure on these,(government-owned), banks to get them to raise loans at sensible rates, in order to resolve this, and many similar employment creating businesses
Unsuitable or offensive? Report this comment