I don't think he's saying that we aren't capable. Just that we aren't capable yet in enough numbers. I work with some skilled engineers. I'm currently in the process of trying to recruit another one. It's almost impossible without paying over £40k plus (in the NW).
If you're a decent Engineer at the moment then you can pick and choose your workplace. We simply haven't invested in the training because we've had cheaper options abroad. It'll be 10 years before that imbalance will be even close to being addressed.
Immigration is the answer. Every time immigration has been discussed its been about targeted immigration. A qualified engineer with Seat in Spain is on €26k-€28k. That's £23.5k. Offer them £30k = €33.5k.