Posted by: VM | 28 July 2009

Government has given Vestas bosses £6 million – but still won’t nationalise

28 July: The government annnounced yesterday that it has granted Vestas £6 million in cash. This is ‘old money’ though, already committed a while ago. It’s being re-announced now as the government tries to save face in the teeth of the campaign to keep jobs at Vestas.

Vestas bosses insist that the funding will not keep the Isle of Wight factories from closure. They say closure is “unavoidable” because the wind energy market is currently “in a decline”. Instead of handing out cash to job-cutters, the Government should take the factories over and use them to meet an increased wind-energy investment plan.


Responses

  1. It is ridiculous that a wind turbine producer is decreasing capacity. How can the government allow this to happen?

    I am not impressed with the bosses at Vesta who come across as those rather pathetic jumped up little Napoleons who so often lurk in middle management positions. How cowardly and malicious to put letters firing the protesters in with Pizzas?

    These bureaucrats shouldn’t be in charge of a pair of scissors, let alone a supposedly entrepreneurial green engineering firm.

  2. The Times thinks otherwise:

    From The Times
    July 29, 2009
    Wind farm boom flies in face of turbine factory shutdown
    New figures contradict figures by wind farm factory owners Vestas that demand is too low to justify continuing production
    Ben Webster, Environment Editor

    Britain’s countryside and coastline will be dotted with 2,700 new wind turbines by 2012 — more than double the existing total — according to an industry survey of approved wind farms.

    The figures contradict claims by Vestas, owner of the country’s only significant wind turbine factory, that demand is too low to justify continuing production…

    http://www.timesonline.co.uk/tol/news/environment/article6730988.ece

  3. Not so simple as it seems.

    It is a fact that lots of projects are stalled due to investors who cannot finance projects for launch. This means that production volume decreases rapidly with over capacity as result.

    I have myself no direct interest in wind mill business – only observing facts and listening to explanations from related industries.

    Orders are simply fading out, postponed or cancelled causing staff reductions or closure of factories. I guess the factories that can show efficiency and earnings to stockholders stay alive and grow stronger.

    Let us name it a “wake up call”.

  4. In Denmark we saw a crisis some years ago in wind mill industries where government suddenly came up with the brilliant idea of launching new projects.

    Only problem is that from planning to launch and actual installation is a time schedule of several months if not more than a year. Even if projects were launched at that time the danish market was at that time only 3 % of production volume. A joke to think investments would help.

    Wind mill industry is order producing industry, anybody who manufacture only for holding on stock is digging their own grave.

    No orders, no production, no jobs.

  5. Having spent 3 years developing wind farm projects in the UK and the rest of Europe I can only agree with some of the statements above. Although the UK has great wind resources and government support, it is incredibly difficult to get local planning approval and grid connection in the UK – much harder than elsewhere in Europe. Local planning authorities have the last word on what gets built or not in their areas and – sadly for the renewable energy business – most have a “not in my back yard” position. Consequently, these projects are simply not happening in the UK.

  6. Can someone explain why our Government continues to offer £6m to a company which is about to make 625 people redundant? Surely this should be withdrawn or only paid on the understanding that the jobs are protected? The costs of supporting another 600 people with benefits etc., must be a practical consideration in these cash strapped times.

  7. so the government have already paid-out a shed-load of money, and should now declare that the owners of Visteon have lost their ‘right’ to own it: the Home Secretary & ex-postie Alan Johnson should call off the cops that have tried to starve-out the occupiers and a democratic committee of Visteon workers should take over the running of the place which should resume production. The government can buy wind-turbines produced and pay the wages of the workers instead of Benefits!
    simple!


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