Homepage  |   E-mail this article  |   Print

---

Business secretary Peter Mandelson

---

Advertisement

7:52 am, March 12, 2010
Mandelson to propose state infrastructure bank in Manchester speech

Business secretary Peter Mandelson will announce plans for a new infrastructure bank to finance major public projects, in a speech at the University of Manchester today.

The state-owned bank could issue bonds to pension funds, backed by assets such as the UK's motorway network, as a way of raising capital to pay for new nuclear power stations or high speed rail lines.

Lord Mandelson is expected to tell an audience of regional business leaders: “Britain is a comparatively expensive place to build infrastructure. We need to look for innovative ways of lowering capital costs, mitigating the initial risks and uncertainty and guaranteeing that users will pay a fair price, either as taxpayers or customers, for infrastructure over time. We need to make sure local workers have the right skills to do the jobs.

“We need to mobilise private investors on a totally new scale. That has to include examining the case for public-sector backed financial institutions to achieve this mobilisation. That is a key part of Infrastructure UK's remit.”

‘Infrastructure UK was set up last year to advise government on management and planning of major projects.

Also today, the business secretary officially opening one of the UK’s most advanced welding schools at equipment distribution company Wilkinson Star in Salford.

The company, owned by Salford City Reds chairman John Wilkinson, will train more than 1,000 people every year.

Lord Mandelson said: “We expanded apprenticeships in this country precisely because we know how important it is to keep investing in skills, especially during a downturn.

“Over 35,000 new apprentices were hired in the North West last year, making a real difference to lives across the region. Wilkinson Star’s advanced welding school is an important example of just the sort of investment we want to see, and I am delighted to be here in Salford to open it.”

Comments?manchesternews@crain.com