Interview with Timothy de la Fuente, general Secretary of sectoral industrial policies
October 21, 2009
What does mean for the sector the holding of such a Conference?
For the Ministry of industry the benefit is not tangible to view two days. Our country is interested in much the celebration of this type of conferences international, first of all, because it allows us to learn that others are doing and, secondly, because overseas can see what we are capable of doing. For our industry what is internationalization of the Spanish economy is good and necessary. This Congress is a bit more on the internationalization: grain to grain becomes mountain.
In his speech he argued that specialization is key to the development of the Spanish product to not have to compete with emerging or developing.
What does the Ministry to support this specialization of our products?
We design ministerial orders and help lines to finance all those industrial activities that are characterized by these parameters, activities where research and development is present or where the necessary qualifications of the workers is greater.
A few months ago the Catalan metal sector starred in several acts of protest, some of which was made to go directly to the Ministry of industry. We would like to know how the Ministry received the complaints of the sector and what measures have been taken in this regard.
These acts are legitimate and the Ministry has done is to note, observe, and analyze why such situations occur. We are at a time difficult and this is important to stress that. We understand this reaction and we are not happy that the economic situation is the one that is, but far from it, which is ultimately the navel-gazing, we try to make policies that help to get out of this context. Now the slogan is to resist and that the market is stagnating and demand very contracted. Then, while that confidence is regenerated, while the credit and liquidity situation will alleviating, the Administration puts a bit.
In what way?
And for the sector of the metal in particular, that is being done?
We have developed a ministerial order with quite a few projects which have helped a large number of companies. Speak of the sector of the metal is somewhat difficult: as a whole accounts for more than 50% of industrial production. When we speak of the metal we speak also of activities such as the automobile, bionics and the naval. We know that this year there are problems of funding projects and investments. Investment means future and employment screening. For this reason, we have an order of 200 million euros in the case of certain strategic sectors, not only of the metal. There are another 800 million for the automotive industry. We also have programmes for reindustrialization. As far as possible we are trying to finance what the financial system is not able to finance. We try to inject that liquidity, but help the economy, in the case of the industrial sector, is to be done very carefully.
Do you think that it is appropriate with the rules governing the construction and metal sectors?
The Ministry of industry is committed to all the policies of European internal market. In this regard, I believe that we are pioneers. It is true that the product in Europe can move but I also have to say that then, to decide where you must install it, where you have to put it, involved other administrations: responsible for the fire, the local administration and the regional... I think that we should reduce all these unnecessary administrative burdens, in many cases, and as soon as possible. The Ministry could not support companies because Yes, to solve its income statement. When we help us to a very special vigilante who is the European Commission. Therefore, the aid should go to investments involving r & d, training and environmental improvements, because if it is not the case, we are distorting competition. We would not help if we affirmed to a company that does not put in such circumstances because it would force her to have to return the aid within a few years. For this voyage do not need these saddlebags.
Too many obstacles...
Yes, according to an analysis of the European Commission. According to the analysis of the Spanish Government, not. All that unnecessary administrative burden, so to speak, is very high percentages on GNP, and that, ultimately, slows the entrepreneurial activity. Who will undertake an investment or to create a company, if all this kinds of distortions, so think twice. From the Ministry of industry, we believe that legislation, should be simplified without that necessarily loses rigour, as the metal structure must be sturdy and safe. I believe that space for regulatory simplification there is.
And he does not believe that depends too on the steel of the building?
It is an inevitable pair. Indeed, for our Ministry and the Government of any country all through reduced dependence on the construction of housing and to create alternatives in other activities. Thus do not have all the eggs in the same basket. There are companies that have opted for renewable energies, for example the wind sector, and this requires very complex metal structures. All this is very welcome.
And what will happen with the building?
The construction is not going to stop, because Spain needs of the order of 300-400,000 dwellings per year. What happens is that we're still digesting the qualms that have taken place so far. It is likely that in the construction sector and in the of the services of the building, a home automation company, for example, have many more possibilities than before, that the market will require a construction of higher value added andof course, to the same or lower price.
This will lead to species more intelligent and hard-working will be those that survive and, in addition, with success. In Spain he has continued to build. For this reason, if the metal structure is moving into high value added, technical and technological phases, will always be there.
And we are in a position to adapt to this reality?
I think Yes. We are the number one but we have our space: we are competitive, both in construction and architecture. The Spanish construction is in the world.
According to the picture drawing, when are we leave this crisis?
Here we can confuse the wishes with the realities. There are times that talk about sectors is a little unreal. It should be talk about companies, because there are who have not suffered the crisis. The sector of aviation, an industry with a high added value, is giving many joys to the Ministry, and therefore the companies in this sector operate.
Anyway, I think that this is out collectively. We are very attached to the European economy, and already years ago Jordi Pujol said that if in Europe things are going well, in Spain, albeit by trawling, Iran well also. The most important thing is clarification of the financial system because, at least for the industry, which has resulted in more problems. Of course, has also influenced the fall of demand, but it does not require you to close; does, however, the lack of credit, which you have to pay a stock or fund a circulating and which do not have to. In this sense, it seems that there are already signs that the financial issue is resolved. Another remarkable issue is that now more than ever before saving. That is good to some extent, but if the money is in the Bank, is not circulating. We will leave when the market returns to have confidence. And, I repeat, we must provide more; We must give more content to export. In short, there to be more competitive.