First of all the overnight good news. The Brexit Party lost the Peterborough by-election, albeit very narrowly. Labour held on with a slightly increased majority although their vote went down by 17% - the Tories went down by 25%, this on a significantly reduced turnout of 48%. Importantly, it denied Farage a victory and a platform and we should celebrate that. Also, at 29% it was lower than the 32% they got a few days ago in the European elections. Full report HERE
Now, back to the economy and a few points about the Ford plant closure in Bridgend.
Simon Jack, the BBC's industrial correspondent, pointed out that while car companies around the world are scrambling to revamp plants towards battery and electric drives with unprecedented levels of investment, here in the UK last year investment in the car industry actually fell by 50%. Brexit uncertainty means Britain will miss out on the beginning of a revolution in electric and self driving cars. Who is going to pump millions even billions of pounds into plants here when the big market is across The Channel? I was going to say the workforce has been betrayed, but in truth the areas that voted leave betrayed themselves.
Simon Jack, the BBC's industrial correspondent, pointed out that while car companies around the world are scrambling to revamp plants towards battery and electric drives with unprecedented levels of investment, here in the UK last year investment in the car industry actually fell by 50%. Brexit uncertainty means Britain will miss out on the beginning of a revolution in electric and self driving cars. Who is going to pump millions even billions of pounds into plants here when the big market is across The Channel? I was going to say the workforce has been betrayed, but in truth the areas that voted leave betrayed themselves.
We will not get this opportunity again for years, if ever, thanks to Brexit.
Next, a few days ago Sky News reported on rumours about the Bridgend factory but unwittingly revealed one of our great national problem. In the accompanying picture showing assembly line workers at Bridgend, they are described as 'engineers'. I've heard people describe car mechanics as 'engineers' or technicians sent to fix your gas boiler as 'engineers'. This is how the press see engineers. It demonstrates the value we place on them and explains the long years of decline in manufacturing.
Next, a few days ago Sky News reported on rumours about the Bridgend factory but unwittingly revealed one of our great national problem. In the accompanying picture showing assembly line workers at Bridgend, they are described as 'engineers'. I've heard people describe car mechanics as 'engineers' or technicians sent to fix your gas boiler as 'engineers'. This is how the press see engineers. It demonstrates the value we place on them and explains the long years of decline in manufacturing.
In continental Europe a qualified engineer is treated almost reverentially and on about the same level as a medical doctor. They're respected because they command respect.
And although Ford UK, like Honda and Nissan before them, are not explicitly blaming Brexit, let's not forget they want to continue selling cars here to people who voted leave. They have to think about future sales. Steve Armstrong, the head of Ford in Europe, said a long time ago that a no deal Brexit would be catastrophic and after three years that is still a possibility, and even the government's default position. The Tory front runner thinks that we should f**k business.
Finally, Len McCluskey, Unite union general secretary (HERE), said Ford had treated its UK workers "abysmally" and went on:
"The fact remains that it is cheaper, easier and quicker to sack our workers than those in our competitor countries," he said, vowing to "resist this closure with all our might".
Yet he is in favour of Brexit and many Brexiteers are advocates of reducing regulations and employment protection which is likely to make it easier still to sack workers. Wake up and smell the coffee McCluskey, for heaven's sake!
And although Ford UK, like Honda and Nissan before them, are not explicitly blaming Brexit, let's not forget they want to continue selling cars here to people who voted leave. They have to think about future sales. Steve Armstrong, the head of Ford in Europe, said a long time ago that a no deal Brexit would be catastrophic and after three years that is still a possibility, and even the government's default position. The Tory front runner thinks that we should f**k business.
Finally, Len McCluskey, Unite union general secretary (HERE), said Ford had treated its UK workers "abysmally" and went on:
"The fact remains that it is cheaper, easier and quicker to sack our workers than those in our competitor countries," he said, vowing to "resist this closure with all our might".
Yet he is in favour of Brexit and many Brexiteers are advocates of reducing regulations and employment protection which is likely to make it easier still to sack workers. Wake up and smell the coffee McCluskey, for heaven's sake!
Sky are also reporting comments from the old Engineering Employers Federation (EEF) now called Make UK, suggesting companies in mainland Europe are 'abandoning' UK suppliers because of Brexit uncertainty. As we career crazily towards the drop, they are giving up on us and who can blame them? Make UK' CEO Stephen Phipson said:
"With this picture it would be the height of economic lunacy to take the
UK out of the EU with no deal in place. The race to the bottom in the
interests of party ideology has to stop otherwise there will be a heavy
price to pay."
Brexit is eroding what little is left of our once world-famous manufacturing base.
On another topic I note Karen Wheeler, the senior official responsible for delivering our post-Brexit 'frictionless' border plans has resigned. This may or may not be significant. She gave a presentation
in Belfast a few weeks ago which put the date when 'alternative
arrangements' might be available for the Irish border
at 2030. This didn't go down well with Brexiteers and there is
speculation that she may have been pushed.
The Guardian's report says:
"Her departure is being seen as a blow to the government and
increasing the risk that the UK will not be as prepared for a possible
no deal on 31 October.
" 'Nothing is happening in Whitehall now. Lots of people have been
stood down on Brexit no-deal preparations and there is a general risk
that people are just going to see this hiatus as an opportunity to clear
off and go into the private sector,' said a source who knows Wheeler".
There is apparently no work being done in Whitehall on preparations for a no deal Brexit so I assume the government has decided there's no point in it. All the more reason to believe it ain't going to happen. The new PM won't be in place until early August with just three months left and winding government back up to a state of complete readiness for no deal would have been difficult in 2017 but it looks impossible now.
At least whoever takes over from May will be able to lay the blame on her - and in this uncertain world we can be sure that they will.
