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Save manufacturing: Steel yourself Gordon |
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Written by Austin Mitchell
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01 October 2000 |
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More Euro nonsense is talked about CORUS than it produces steel. For four years Corus has been warning that the pound is grossly over-valued. Government has done exactly nothing about it. Now the consequences have hit home with imports increasing and production being unprofitable and government suddenly blames Corus.
Total nonsense. At this exchange rate, manufacturing, like agriculture isn’t profitable enough to keep going. So production is being transferred overseas. It’s happening in textiles, cars, TV and radio production and now in steel. As for the manufacturing, contraction is inevitable. Unless we get the pound down, well down. Or pay huge subsidies!
Nor has this anything to do with the Euro as many asinine commentators infer. We couldn’t go in at this exchange rate. Or anything remotely like it.
The exchange rate translates our costs into foreign prices. To enter the EURO at this rate locks us in permanently at an uncompetitive level with costs too high and production unprofitable. We’re now in the third manufacturing melt down since 1979. It will go on and get worse unless we get REAL. Reduce interest rates. Intervene. Get the pound down. Simple jobs for Gordon. Unless he does them, he’ll get the stability of a graveyard. |
