The EU debate - Part III

For non rexit reasons, a multinational company trading locally has built a factory in a part of Europe many of its workers are from. A few weeks back, they offered them first refusal and a package to go work there. They all declined preferring the UK.

 

They didn't want us to leave. They very much do now.

And that brings us back to the issue of trade and freedom of movement negotiations and the fact that they won't just bend over because Pete and Kustard want them to.

 

Genius!!

 

Yep. To start with they'll just scale down production over here, and end up just producing RHD cars for the UK market. As volume drops they'll then be left with the decision as to whether the infrastructure costs and build cost per car adds up to it being worthwhile to continue having facilities here at all in the longer term.

 

So do I but try buying anything bigger and the price rockets.
Are you suggesting that we will be able to offset the loss of mass car production by selling luxury cars?

 

Pete asked whoever it was to show the faults in his arguments where they exist. That's a solid example of someone doing just that and him blindly ignoring it and, as I said, ploughing on regardless.

 

Not sure I get your point?

 

Ford moved with the help of EU money
Cadburys move with help of EU money
same will happen with Toyota and Honda, so the UK gov will offer lower corp tax to offset any tariffs

 

And jaguar/ Land rover?
http://www.tata.com/company/reportsinside/BZfXyZC0Bo0=/TLYVr3YPkMU=

What makes you confident that Tata will continue production in the UK?

 

How can the Govt offer specific companies a potential 10% reduction in corporation tax?

 

They are expanding, new site in Coventry (old Peugeot site) new sites near Wolverhampton. and sweeteners from the Gov

 

There are several really, they're a non-EU company that opened the other factory after being encouraged by generous EU grants and subsidies. A bit like the long list of other companies enticed from the UK by the EU.

The workers have experience of other EU countries, and even with the potential brexit, far prefer this one.

Not all company moves from the UK to EU are brexit related.

 

Isn't a part of the issue with Tata the EU interfering with the market and then EU rules restricting what the UK can do.to help?

 

That doesn't fill me with any confidence that things won't change if market conditions change.

 

Gov (the old Chancellor) has said it will cut corp tax to 17% by 2020 to get companies to come to/invest in UK. The EU dont like it, so that is a UK bargaining chip

 

Where in Europe has the highest corporate tax rates? How Britain compares with EU members
http://www.express.co.uk/finance/ci...rporate-tax-rates-UK-compared-with-EU-members

 

Any company could move from any country to another to suit.

 

Also the EU want a standard corp rate

 

As Toyota and Honda are struggling to make any profit, less corporation tax won't be much of an enticement. If we we want to subsidise an industry steel would be a much better option than cars. When we do leave the EU the government won't be able to use the excuse that it is against the rules and will just have to admit that they don't give a ****.

 

Only if they think they will never make any profit. Companies can carry forward losses.