North East funding 'welcome'

Sep 9 2009 By The Journal

BUSINESS chiefs last night welcomed extra funding to support the development of the low-carbon economy in the region but urged ministers to do more.

The CBI said ministers must improve their research and development tax credit scheme to boost investment, use Government procurement to foster take-up of low carbon technology and accelerate national infrastructure projects in areas like energy generation.

Companies can get tax relief through the R&D scheme or in the case of some small or medium-sized firms get a cash sum.

Regional CBI director Sarah Green welcomed news the region is being included in an £11m project to develop a national network of charging points for electric vehicles.

But she added: "It cannot be just another set of announcements. Business needs certainty and we need to move to implementation very fast because these are very competitive markets."

She also said: "Britain has great expertise in low-carbon technology and research. This must be encouraged and supported by Government, but we also need policies that help to implement advances in technology in practical and commercially viable ways. It is encouraging that the UK is already home to the R&D centres of many international companies.

"What is more open to question is whether this can be sustained in the face of increased investment by our competitors, especially the United States. We need to turn brainpower into business success to keep Britain at the cutting-edge of low-carbon technology."