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U K Losing Out To France As Manufacturing Closes Down

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http://www.telegraph.co.uk/money/main.jhtm.../08/ixcity.html

UK in danger of losing top investment spot to France

By Edmund Conway (Filed: 08/06/2006)

Britain is perilously close to losing its prized position as top European destination for foreign investment to France, in a sign that multinationals are turning away from the UK when locating big new projects.
The UK was the only major country to lose ground in Ernst & Young's closely-watched European Investment Monitor, published today. The only reason Britain still topped the table was because of the strength of London, which was the number one city for foreign direct investment (FDI), the study showed.

Could it be that taxation and unaffordable housing is making the UK a no-go area for new industries? HPI should be seen as a disease rather than a economic miracle. After all, the world's central bankers are determined to stamp out "inflation" in which case house price inflation should be regarded as public enemy number 1.

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http://www.telegraph.co.uk/money/main.jhtm.../08/ixcity.html

UK in danger of losing top investment spot to France

By Edmund Conway (Filed: 08/06/2006)

Britain is perilously close to losing its prized position as top European destination for foreign investment to France, in a sign that multinationals are turning away from the UK when locating big new projects.
The UK was the only major country to lose ground in Ernst & Young's closely-watched European Investment Monitor, published today. The only reason Britain still topped the table was because of the strength of London, which was the number one city for foreign direct investment (FDI), the study showed.

Could it be that taxation and unaffordable housing is making the UK a no-go area for new industries? HPI should be seen as a disease rather than a economic miracle. After all, the world's central bankers are determined to stamp out "inflation" in which case house price inflation should be regarded as public enemy number 1.

A good point. If you think 'I'll have to pay my managers 60k in England for them to have a certain standard of living, but only 40k in France' .... given most businesses biggest cost is the cost of staff, we have clearly reached the point where it makes sense to locate your business elsewhere.

Surely the simplest solution would be for say Toyota or Nissan to build a new factory in France and import the labour from here. The lads here could sell up, buy a much nicer house in France and create a Little England around the factory.

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Interesting. So, the ease of hire and fire in the UK is not such a big salespoint after all -- IIRC the French have 35 hour week and are alsmost unsackable.

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Guest Guy_Montag

A good point. If you think 'I'll have to pay my managers 60k in England for them to have a certain standard of living, but only 40k in France' .... given most businesses biggest cost is the cost of staff, we have clearly reached the point where it makes sense to locate your business elsewhere.

Surely the simplest solution would be for say Toyota or Nissan to build a new factory in France and import the labour from here. The lads here could sell up, buy a much nicer house in France and create a Little England around the factory.

So often I have heard on phone-in's and similar that one of the main reasons public sector workers are demanding pay increases is that they cannot afford to buy a house & it is a fair point. Although, before we get into a public-private argument, I know that private sector workers are in the same position, it's just that their pay increases are not debated.

Anyway, my point is, on my salary I could buy a lovely place in many parts of France or Germany, so I am now looking for jobs in France or Germany (half-heartedly, I admit).

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I've pulled all my money out of the UK too.

Britain was an easy place to run a business in the 90s but now:

1. Wealth distribution to non-workers and public sector is making business uninviting.

2. Taxation is criminal and accounting too tedious.

3. This country no longer protects its service sector. Outsourcing is killing off technical jobs to provide fat-cats fat profits.

4. Government lacks direction.

5. Everyone and their dog is now a property developer.

Give it 20 years and the service sector might follow manufacturing.

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We have a government packed full of people who see business as a "problem", or a barely acceptable means to an end, if you put so many obstacles in their way it's no wonder companies look to more welcoming countries. If you look at the growth in direct foreign investment going into Eastern Europe you can see that the UK is well on its way to becoming a basket case.

All we have going for us is the City, which adds a staggering 2% of GDP *cough*, and specializes in selling the UK out from under itself.

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If you look at the growth in direct foreign investment going into Eastern Europe you can see that the UK is well on its way to becoming a basket case.

I really never though I'd see the UK go this way. It's such a shame. I used to think we needed strong manufacturing to buoy the economy but it seems I was wrong. Ok so the service sector came to the rescue; great. What the hell will rescue the service sector? It certainly isn't property auctions. Unless the UK starts to protect itself we are in serious trouble.

I love the way the BBC gave a couple of seconds air-time to the outsourcing of jobs to India. Even then they concentrated on programme-making, probably because it might affect their stealth-taxed existence.

If they find a way to outsource property development start to worry! Oh I nearly forgot we've got the Polish in specially to **** that over for us!

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Interesting. So, the ease of hire and fire in the UK is not such a big salespoint after all -- IIRC the French have 35 hour week and are alsmost unsackable.

I think you have an old fashioned view, you can visit many new facilities and the high degree of automation and absence of staff is notable. Many companies just want a select pool of highly skilled people whom they have no interest in sacking, the pack 'em in, pile 'em high, sell 'em cheap model is over.

Besides, the high cost of living in the UK more than offsets potential redundancy costs. The fact companies also have to compete against £40k non-jobs is a factor too, the finally insult is when companies are taxed and regulated above the norm in order to pay for the latter.

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The fact companies also have to compete against £40k non-jobs is a factor too, the finally insult is when companies are taxed and regulated above the norm in order to pay for the latter.

Absolutely spot on. We are being taxed and trying to compete against our own money in essence!

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Absolutely spot on. We are being taxed and trying to compete against our own money in essence!

Also, since Brown's fateful raid on private pensions, companies are now having to divert money once intended for investment. His intentions to raid over £6b a year were put out in a quiet press release ironically entitled "Companies and their shareholders: tax changes to promote investment by companies", notice that little passage about advanced corporation tax? It's surprising how a few short words can so undermine a once admired system. Did the sneaky ba$tard really think he could blatantly steal such sums without there being any longterm consequences?

Edited by BuyingBear

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Each new public sector job is a double loss, an employee goes from being a net contributor to the state to a net burden. This isn't so much of a problem if the private work force is growing faster than the public, but we have the direct opposite.

Also, purposefulness and productivity is huge factor, we're starting to see job loses in the NHS but amongst doctors, clinical staff, nurses and the disappearance of junior posts (the doctors of tomorrow), where's the slaughter of the countless administrators and target setters and target checkers? For every new nurse we had five new administrators, and the former may well have been sacked by now. We're left with an NHS where patient facilities are being closed but with offices still stuffed full of administrators.

If we had 500,000 new doctors, nurses, teachers and policemen people could tolerate this, but we don't have that, what we had of the former are increasingly being fired and we're sadly left with non-jobs and petty bureaucrats. You can't run a country like this once the credit runs dry.

Edited by BuyingBear

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Hi Guy, I'm also keeping an eye on my quality of life and France / Germany appear to offer good potential. Which regions are you looking at?

I agree with your points on the public sector BuyingBear - I once moved private-public and it was total hell - thankfully, I managed to escape.

G

Edited by gruffydd

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  • 339 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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