By Ed Miliband MP
Dear Alex,
Thank you for your letter about the Vestas factory on the Isle of Wight. I want to take the opportunity to let LabourList readers know about what the Labour government has been doing in relation to Vestas and the wider renewable energy industry.
I have met with some of the workers from Vestas and I am very sorry for the people who are losing their jobs. When I met the Vestas management a few months ago, to see how we could help, and when I have spoken to them since then, I have wanted to do all I can to try to find a solution that could help the workforce.
Vestas have repeatedly told us that offers of government subsidy were not the issue for them. The factory makes a different sized blade to the ones used in Britain, so each one it makes is shipped to the US. They wanted to have their production in America to cut some of that journey.
For months, we have worked with the company to understand what would be required to convert the factory to making onshore blades for the UK.
Their biggest difficulty is with planning objections to onshore wind turbines, which have slowed down the growth in the UK market. That is why we are reforming the planning rules and are arguing strongly that people need to see climate change as a bigger threat to the countryside than the wind turbine.
We are unlikely to be a centre for onshore wind production if applications are consistently turned down. Analysis in the Guardian on Monday reported that Tory councils have blocked 70% of proposals for onshore wind schemes.
So we have to win a political argument. As Greenpeace director John Sauven said in the Guardian yesterday:
"One of the reasons Britain's green industrial revolution is yet to take off is the lack of domestic demand for wind turbines, and a key reason for that has been the attitude of many Conservative councils. They need to be offered incentives to stop blocking wind developments, while David Cameron could make a difference straight away by making a crystal-clear commitment that a Tory Britain would meet the target to generate 20% of our energy from renewables by 2020."
Vestas are keeping a prototype facility at the factory on the Isle of Wight. This week we have awarded Vestas more than six million pounds for their R+D facility, which will employ 150 people initially, and is expected to grow in the future.
This week we have also made available one billion pounds worth of loans for onshore windfarms that have been stalled by the credit crunch. The resources we are announcing back up our plans with clear actions to ensure we deliver.
Labour’s policy is having a positive effect. Next year alone, the renewable electricity industry will get £1 billion of support because of government action, and the amount of power from onshore wind grew by a third last year, and the amount of offshore wind power grew by 67% - so Britain now has more offshore wind power than any other country in the world.
It is to enhance the prospects for green jobs that we have made available 120 million pounds for offshore wind manufacture in the UK and 60 million pounds for marine development. Last week I visited a factory in Wales that employs 800 people and exports solar panels across Europe. The week before I saw a factory that is producing buses that produce fewer emissions, helping climate change and local air quality. Research suggest there could be half a million jobs in renewable energy by 2020.
I believe that to be ready to pursue these opportunities, we must invest in the skills, research, and the infrastructure to help clean energy companies grow – and we are making those investments.
In the end, making sure the transition happens as quickly as possible will need government action, it will need dynamic companies, and it will also need us to win arguments around the country that renewable power should have a bigger role in the country’s future. I hope LabourList readers will help us win that political argument.
Thank you again for writing to me.
Ed Miliband
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To be frank this is absolute crap. Much like how you diverted my question on Vestas on Monday at the Friends of the Earth meeting in Oxford on Monday into one about planning applications, you have done it again here!
I couldn't give a toss if Tory councils are blocking wind farm applications. They are bastards for doing it but then they always have been bastards - bloody well deal with it.
The main issue here is about whether or not you are going to let the UK's ONLY wind turbine manufacturing plant close or not. At the moment you aren't. You have repeatedly stated that bringing the plant into public ownership is not an option because it might prevent inward investment but I want to discuss this a little further....
You were democratically put into the government by the people of this country. Why then, are you taking the side of a unaccountable, unelected, anti-union Danish multinational over the side of the British public, over the side of our job prospects and over the side of our planet. You know when the people of the Isle of Wight are calling for nationalisation, that there must be a bloody good reason!
Furthermore, you came to the meeting on Monday asking for our support in you setting out an 'ambitious' agenda for Copenhagen, firstly if you cannot save one manufactuing plant, how exactly are you going to take the radical measures needed to achieve any possible targets made at Copenhagen. Secondly, and more importantly, how the hell do you expect us to follow you, to put our trust in you if you aren't on our side. You've taken the interests of international capital over the interests of the people of this country and even the people of the world.
On the issue of nationalisation itself, this is ONE plant. It is simply not plausible that bringing one plant into public ownership will dissuade companies from investing here. Also, how can you talk about dissuading investors when this is our last plant. You wouldn't let our last library close, you wouldn't let our last museum close, you wouldn't let our last army regiment be disbanded because they are important (and it would be electoral suicide!) - so don't let our last wind turbine plant close!
Please do the right thing and put in a compulsary purchase.
Ben Singleton
Ruskin College
Oxford East CLP
You highlight the incompatible interests of our politicians who are attempting to slot into the Global Economic framework whilst also claim to be representing us. This is the weakness of Global Economics, it was not chosen or selected by the people but brought to them and they are realising how little they matter in the context of it. Politicians need to be more honest about and proactive in showing the people the benefits rather than dodging the real issue as Ed has done here. Perhaps a little frank honesty rather than feeble prattle would go a long way.
Nothing useful, just spunking taxpayer money up the wall.
I didn't read the letter, but I'm guessing that's an accurate precis?
Why does the size of blade matter so much? Is there a reason why the 'US size' cannot be used in new installations in the UK? I can't see any reason why this should be an insurmountable problem.
------------
Press release from Vestas Wind Systems A/S
Randers, 28 July 2009
Update on the situation at Vestas’ blade factory on the Isle of Wight, UK
On 28 April 2009, Vestas announced it expected to lay off approximately 1,900 employees at the company’s production units in Northern Europe, primarily in Denmark and UK, as part of a wider capacity reduction strategy in Northern Europe.
The announcement was made in response to conditions in the Northern European markets not having met the company’s expectations. The current market conditions are caused by the credit crunch, weak currencies and a lack of local political action in certain markets. At the same time, Vestas is investing in a significant production base in the US. The expansion in the US has created substantial excess production capacity in Northern Europe, which has so far also manufactured turbines for the US market. Unfortunately, demand on the Northern European market cannot absorb the excess capacity.
This has had a serious impact on the company’s blade factory on the Isle of Wight, UK as in recent years all the blades for the V82 turbine produced here have been exported to the US.
Due to the company’s expansion in the US, Vestas announced plans in August 2008 to convert the production at the factory on the Isle of Wight from 40-metre blades for the V82 turbine to 44-metre blades for the V90 wind turbine, a turbine which is particularly well-suited for the UK onshore and offshore market. The decision followed the UK government’s announcement on 26 June 2008 of its plan for how to ensure the country would meet its obligation under the EU target of achieving 20% renewable energy by 2020.
Despite the UK government’s strong commitment to renewable energy – which was reconfirmed on 15 July 2009 by its Low Carbon Transition Plan – the local planning process for the construction of new onshore wind power plants in the UK remains an obstacle to the development of a more favourable market for onshore wind power. Since offshore wind power is still on a project basis, a large and stable market for onshore wind power is vital to secure a stable production flow.
As a result of the current market conditions in Northern Europe and the planning process in the UK, Vestas has decided not to move forward with its plans to convert the factory into the production of 44-metre blades. The company initiated consultation with employee representatives at the blade factory on the Isle of Wight on 30 April 2009 about the future of the factory.
Vestas is now conducting the final consultations with its employees. However, the occupation currently taking place at the company’s blade factory, constituting industrial action on the part of employees participating in it, continues to cause difficulties for Vestas in conducting these consultations in an orderly manner. Since the occupation began on Monday 20 July, Vestas has made several attempts to encourage the employees participating in the occupation to discontinue their participation. Vestas has also explained to the employees concerned the potential consequences of their actions if they were to refuse to discontinue their participation. Today, Vestas therefore, unfortunately, saw no other choice than to dismiss the 11 employees, who the company has positively identified as the employees currently participating in the occupation of the factory.
Vestas proceeds with its already announced plans to expand its existing research and development activities on the Isle of Wight by making significant investments in a new blade technology centre on the island. The centre will be capable of designing, manufacturing prototypes and testing the world’s largest wind turbine blades and is scheduled to open in 2011. Today, the centre employs a staff of 110 which is expected to grow to about 150 by the end of the year. Vestas is grateful to the UK government for its intended grant support to Vestas Technology UK Ltd.’s research and development centre on the Isle of Wight which is crucial for facilitating this expansion.
The UK market has very favourable wind conditions. If this market develops into a strong and stable market, Vestas will consider investing in new manufacturing capacity in the UK as stated in Vestas’ announcement of 28 April 2009.
In addition to its research and development activities, Vestas has sales and service activities in the UK. Vestas has installed almost 900 turbines with a total installed capacity of about 1,080 megawatts in the UK (as of 31 December 2008).
Contact details:
Vestas Wind Systems A/S, Denmark
Peter W Kruse, Senior Vice President, Group Communications
Contact through Linda Nuber-Baron
Telephone +45 2512 2453
Why must environment be mixed with politics? It is confusing the issue, not solving it.
With regards to your discussions with Vesta Ed, I'll seek some proof of that under FoI. I suspect that you're spinning a line, but we'll wait and see. Any documentation between yourself and Vesta should be available under the act, so it shouldn't be too hard to check up on.
I'd repeat what I've written in other debates about onshore wind farms, but I suspect it will fall on deaf ears. They are a bad idea, they are unproven and dangerous to those located within close proximity and ultimately they are not the most efficient source of natural power available for the amount of money being thrown at them. But this is already known as is the location of the onshore wind farms; slap bang in the middle of Conservative-held constituencies. How did that happen Ed?
You will not win hearts and minds by bashing the Conservatives. There are certain Conservative MPs that still make me want to puke when I see them interviewed on the television, but name calling and throwing about 'the Conservatives will do...' isn't going to get the Labour Party anywhere. Why do the Labour Party persist with this line again and again? Can GB not give you a new line or something?
The patronising simpletons just can't resist it can they? I'm surprised he didn't also blame Harold McMillan and Ted Heath.
If you want a successful wind turbine business, you need a demand for wind turbines. If demand is being stifled by Conservatives blocking four out of five wind farm applications, then it's entirely political.
All this 'why bring politics into it?' attitude - politics isn't being 'brought into it', it's always in it. Politics affects everything. If demand is being stifled because of Tories why should Ed Miliband take the flak for that.
When Greenpeace are siding with the Government you know something must be up!
Who knew? I always thought that the government in power would have some er...power. Legislation on inshore windfarms is overdue and thats your fault. I also note that Labours crap offshore efforts have been hampered by your governments dithering and lack of commitment when it mattered (see also nuclear and wave power)
You and your useless government is in no position to talk about green issues. You have totally squandered the last decade and instead of doing something you just bleat more commitments and the tractor production figures to go with them.
Labour have failed so although I congratulate you for getting one of your many lackeys to draft this crap "letter" I wish you would just leave the politicking out and give the country a break by calling an election so that we can see how committed the next lot will truly be to the green agenda
"while David Cameron could make a difference straight away by making a crystal-clear commitment that a Tory Britain would meet the target to generate 20% of our energy from renewables by 2020."
Miliband has made it crystal-clear that he believes that Labour will lose the next General Election.
Gordon will be angry! (Buy shares in Nokia).
(BTW: Mandelson also didn't categorically deny the possibility of his becoming PM, saying only that this possibility may be a "comeback too many".)