This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/commentisfree/2018/jul/25/the-guardian-view-on-jeremy-corbyn-and-industry-what-the-state-can-do
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| The Guardian view on Jeremy Corbyn and industry: what the state can do | The Guardian view on Jeremy Corbyn and industry: what the state can do |
| (4 months later) | |
| Few politicians would want to quibble with the patriotic title of Jeremy Corbyn’s speech on reviving industry this week: Build it in Britain. Successive governments have obediently sung the virtues and value of UK manufacturing. Yet they have had little discernible effect in halting or even slowing its decline. Brexit casts a forbidding light over this already gloomy landscape. Assessments show that manufacturing and other sectors would be worse off under every scenario for leaving. Manufacturers are already holding back on product development and training because of their concerns. | Few politicians would want to quibble with the patriotic title of Jeremy Corbyn’s speech on reviving industry this week: Build it in Britain. Successive governments have obediently sung the virtues and value of UK manufacturing. Yet they have had little discernible effect in halting or even slowing its decline. Brexit casts a forbidding light over this already gloomy landscape. Assessments show that manufacturing and other sectors would be worse off under every scenario for leaving. Manufacturers are already holding back on product development and training because of their concerns. |
| The shift in approach is real this time, and necessarily so. While the Institute of Directors dismissed the Labour leader’s call for government contracts to go to British firms as Trump-style protectionism, there is growing appetite for state support. The distinction between beggar-my-neighbour economic nationalism and the prudent nurturing of domestic industry is not a hard line, but it is one of degree and nature as well as perception. Theresa May’s government has itself recognised the need for a greater state role. | The shift in approach is real this time, and necessarily so. While the Institute of Directors dismissed the Labour leader’s call for government contracts to go to British firms as Trump-style protectionism, there is growing appetite for state support. The distinction between beggar-my-neighbour economic nationalism and the prudent nurturing of domestic industry is not a hard line, but it is one of degree and nature as well as perception. Theresa May’s government has itself recognised the need for a greater state role. |
| The last few decades are littered with broken promises, missed opportunities and a commitment to unfettered markets, with contracts awarded to the lowest bidder and foreign investment welcomed as an unalloyed good at almost any cost. Manufacturing now accounts for 11% of the UK’s GDP, compared with 23% of Germany’s, according to the World Bank. When Margaret Thatcher came to power, almost 7 million people worked in manufacturing; now fewer than 3 million do, with 600,000 jobs lost in the last decade. It is true that plenty of people have enjoyed the benefits of cheap clothes and DVD players, and that inward investment has created much-needed jobs. But the gains of globalisation were never universal and the pains have been cruelly uneven in distribution. Not all of Mr Corbyn’s speech rang true, but he is right to address this. | The last few decades are littered with broken promises, missed opportunities and a commitment to unfettered markets, with contracts awarded to the lowest bidder and foreign investment welcomed as an unalloyed good at almost any cost. Manufacturing now accounts for 11% of the UK’s GDP, compared with 23% of Germany’s, according to the World Bank. When Margaret Thatcher came to power, almost 7 million people worked in manufacturing; now fewer than 3 million do, with 600,000 jobs lost in the last decade. It is true that plenty of people have enjoyed the benefits of cheap clothes and DVD players, and that inward investment has created much-needed jobs. But the gains of globalisation were never universal and the pains have been cruelly uneven in distribution. Not all of Mr Corbyn’s speech rang true, but he is right to address this. |
| In an age of automation, no policy can restore the jobs that vanished; and only a full-bore activist approach could move precarious gig economy workers into stable, well-paid manufacturing work. Nor do British employers always show as much care for their workers and for long-term investment as for pleasing shareholders. But industry can still provide decent jobs, boosting tax receipts; and along with the initial sales often come servicing contracts which are much more lucrative. When the manufacturer is British, the profits remain here and the ownership of intellectual property brings still wider benefits. | In an age of automation, no policy can restore the jobs that vanished; and only a full-bore activist approach could move precarious gig economy workers into stable, well-paid manufacturing work. Nor do British employers always show as much care for their workers and for long-term investment as for pleasing shareholders. But industry can still provide decent jobs, boosting tax receipts; and along with the initial sales often come servicing contracts which are much more lucrative. When the manufacturer is British, the profits remain here and the ownership of intellectual property brings still wider benefits. |
| Since the state spends £200bn a year in the private sector, it is only sensible that it gets a good return for its money, as Mr Corbyn suggests in proposing that new procurement rules should support jobs and industry. Taxpayers do not want their money wasted, but “cheap” and “good value” are far from synonymous. This week, a public accounts committee report on contracting out public services has warned that it has too often meant a focus on the price tag and neglect of quality of service and the knock-on costs of poor service. | Since the state spends £200bn a year in the private sector, it is only sensible that it gets a good return for its money, as Mr Corbyn suggests in proposing that new procurement rules should support jobs and industry. Taxpayers do not want their money wasted, but “cheap” and “good value” are far from synonymous. This week, a public accounts committee report on contracting out public services has warned that it has too often meant a focus on the price tag and neglect of quality of service and the knock-on costs of poor service. |
| As Mr Corbyn pointed out, Brexiters were wrong to claim that EU membership prevented support for British industry. Exemptions for state aid exist and have been used more assiduously by others, notably Germany. Nonetheless Brexit, already hitting foreign investment, makes state support much more urgent. | As Mr Corbyn pointed out, Brexiters were wrong to claim that EU membership prevented support for British industry. Exemptions for state aid exist and have been used more assiduously by others, notably Germany. Nonetheless Brexit, already hitting foreign investment, makes state support much more urgent. |
| The UK is still the eighth largest manufacturer in the world. The government said at least some of the right things in last year’s white paper, but implementation of the third industrial strategy in 15 years has been slow. Carrying through on promises is critical. Policy shifts and personnel changes wasted precious opportunities to boost green tech. Apprenticeships were hailed as key to boosting skills, yet the number of people starting a scheme fell by a third over the last nine months. Committing to a role for the state is in part about giving private companies the degree of certainty they need as they consider investments. That is all the more critical given the profound uncertainty now facing British companies and others who manufacture here. | The UK is still the eighth largest manufacturer in the world. The government said at least some of the right things in last year’s white paper, but implementation of the third industrial strategy in 15 years has been slow. Carrying through on promises is critical. Policy shifts and personnel changes wasted precious opportunities to boost green tech. Apprenticeships were hailed as key to boosting skills, yet the number of people starting a scheme fell by a third over the last nine months. Committing to a role for the state is in part about giving private companies the degree of certainty they need as they consider investments. That is all the more critical given the profound uncertainty now facing British companies and others who manufacture here. |
| Industrial policy | Industrial policy |
| Opinion | Opinion |
| Manufacturing sector | Manufacturing sector |
| Jeremy Corbyn | Jeremy Corbyn |
| Labour | Labour |
| Brexit | Brexit |
| Article 50 | Article 50 |
| European Union | |
| editorials | editorials |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |