TRADE and industry secretary Patricia Hewitt has hired entrepreneur and vacuum cleaner magnate James Dyson as a new innovation tsar.

He has been controversially appointed to a government think-tank charged with reviewing British manufacturing and innovation. It also includes other luminaries from the manufacturing industry who will seek to find ways of keeping British firms based in this country through a better product supply chain.

Ironically, last year Malmesbury-based Dyson announced production of its world famous vacuum cleaners would stop in Wiltshire when production moved to Malaysia.

Part of the reason, said Mr Dyson, was the difficulty and time wasted in waiting for components to arrive when in the Far East every component he required was available within a 25-mile radius.

However, production of washing machines, and research and development, remain in Malmesbury.

Australian-born Ms Hewitt, 53, who is also Minister for Women, does not want to lose more big name manufacturing overseas and has assembled a team that includes Terence Conran, Cressinda Granger of Mathmos and Kumar Bhattacharrya of Warwick Manufacturing.

Ms Hewitt told the British Chamber of Commerce yesterday: "Technology is changing so fast that one year's skill or new products may be out of date the next. Product life cycles are half what they were only a few years ago.

"Our manufacturers are facing intense competition in every market. And this has been compounded within the euro zone by the persistent weakness of that currency.

"No country can escape the downturn in the world economy, but our policies are helping British manufacturing firms improve and innovate.

"We cannot let our flagship firms be undermined by inefficiency in the UK supply chain failure to address this crucial issue will result in further losses in jobs and capacity. We will only develop the best solutions by asking the most difficult questions, something I am determined we address through our Innovation Review."

Around 800 people lost their jobs when Dyson implemented redundancies in November last year. The company has been able to boost profits by paying Malaysian workers less than workers at its Malmesbury plant.

The committee will report back later this summer with ways it thinks will stop British manufacturers moving their operations abroad.

But Jim D'Avila, regional officer for employment union Amicus, said: "There is no doubting Mr Dyson's creative abilities, his product was a world leader, although there has to be some concern at his commitment and loyalty to the UK and its workforce.

"It's an interesting appointment, but I hope he will play a role in revitalising the manufacturing industry in the UK."