Brexit, the economy and house prices part 5

Rough_Justice

ilovehouses wrote: »

Last year Toyota announced a £240 million investment in their Burnaston plant. The taxpayer is going to pony up £21m.

It's a [STRIKE]bribe[/STRIKE]/ incentive.

Well the EU are big on these [STRIKE]bribes[/STRIKE]/ incentives then, far more so than your lone UK example.

EU countries have also employed state aids extensively from the 1980s, like investment aids, export credits and insurance, corporate rescues, research and development contracts, and direct cash injections into public and private-sector firms. National governments also provide (overtly or covertly) discounted loans or (sometimes unlawful) subsidies to firms.

http://theconversation.com/factcheck-do-other-countries-subsidise-their-car-industry-more-than-we-do-16308

Herzlos

Rough_Justice wrote: »

What utter carp!
Cultural and time differences have not affected India's rise in IT, has it?
The time difference between China & India isn't exactly huge either.

India has just as profound cultural differences, less time zone difference and less restrictions on what data can be sent and handled there.

Having IT stuff moved to India is pretty miserable too but it is cheap.

buglawton

ilovehouses wrote: »

The lack of sunlight and warmth in the UK makes for high cost production - it's energy hungry and yields are lower. Those that make a go of it are producing 'premium' tomatoes and are located near places like British Sugar where there's waste heat to be used.

It's easy to blame to the EU but your mate probably went bust because he either ran out of cash or his customers couldn't be persuaded to pay the required price premium. Ask him - I suspect it's pretty mundane.

He was never competing with Italian tomato growers and, if he thought he was, he made an error of judgement.

Our climate also means that the UKs Northern coastal towns and villages can’t support much of a tourist industry. Totally in contrast to Italy, Portugal, Spain and Greece. Therefore the EU should long ago have granted special fishing rights to the UK to rescue the livelihoods of our coastal communities. With Brexit we might get those rights back but I fear it’ll be a long road to get there.

gfplux

buglawton wrote: »

In todays news: New blue UK passport to be made in France (due to EU outsourcing rules)
Seems my #7558 post had an inkling of this.

A saving of £50 million. Thank you EU.

gfplux

Lornapink wrote: »

May 2016 - (& plenty examples prior to this), German car maker chooses Poland for new engines;


Luxury carmaker Daimler is to build a €500m Mercedes engine factory in Poland, in the latest push by Europe’s car industry into eastern Europe, in search of lower costs.Daimler’s new factory, its first in Poland and only its second engine plant outside of Germany, follows moves by Volkswagen, Fiat and General Motors to invest in the EU’s sixth-largest economy. It also comes just six months after Jaguar Land Rover announced a new £1bn factory in Slovakia, which has become the world’s largest car producer per capita.



https://www.ft.com/content/6e3d4afc-11dc-11e6-bb40-c30e3bfcf63b

Sad news that those new factory’s are not in the UK. However it would be foolish to invest such huge amounts of money in a country leaving the EU.

buglawton

gfplux wrote: »

A saving of £50 million. Thank you EU.

The French government prohibits Frances passports being manufactured anywhere outside of France. That captive market enables its passport makers a great economy of scale so adding another country can be done very competitively.

Thanks EU, but especially the British government for caving in so easily to this sort of trade shenanigans.

vivatifosi

cogito wrote: »

So glad you mentioned British Sugar, a company that had 18 factories in 1980 but now has only four thanks to the EU reducing sugar quotas. It is easy to blame the EU, isn't it?

Some time ago, probably before the referendum, I watched an article on the news about the sugar industry. One company wanted to remain in the EU, I think that was British Sugar. They were worried about the impact of losing sales to the EU. This company made beet sugar.

The other company, I think it was Tate and Lyle, was quite happy to leave the EU. Their business model involved importing cane sugar from the former commonwealth. Their opportunity was far greater as a result of Brexit.

Which kind of highlights the complexities of Brexit. Even n a specific sector like sugar there could be winners and losers.

buglawton

gfplux wrote: »

Sad news that those new factory’s are not in the UK. However it would be foolish to invest such huge amounts of money in a country leaving the EU.

It does make me wonder though, about why Poland can still be a big net recipient of EU development funds and also why the EU allows Poland to employ up to 1.5m astonishingly cheap Ukrainian immigrants.

CKhalvashi

buglawton wrote: »

It does make me wonder though, about why Poland can still be a big net recipient of EU development funds and also why the EU allows Poland to employ up to 1.5m astonishingly cheap Ukrainian immigrants.

Because the EU doesn't control immigration policy, national governments do.

Why are you once again blaming the EU for something it doesn't control?

gfplux

cogito wrote: »

So glad you mentioned British Sugar, a company that had 18 factories in 1980 but now has only four thanks to the EU reducing sugar quotas. It is easy to blame the EU, isn't it?

If British Suger gets its way in new trade deals it will destroy the British suger beet farmers business.
Brexiters don!!!8217;t like protectionism by the EU but welcome it for the future. Unintended consequences is a phrase you will hear very often in the future.