Tunnel vision: the French entrepreneurs cashing in on the English side of the tunnel

http://www.theguardian.com/world/2014/sep/09/french-companies-ashford-economy-draw

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For the past seven years Fabien Henissart, 40, has switched countries twice a day, crossing the sea and resetting his watch, back and forth. “You get used to it, you know,” says this resident of Boulogne in northern France.

Every morning he drives his car to the Eurotunnel shuttle terminal, picking up several workmates on the way. After a 35-minute journey they emerge in southern England and carry on to Ashford, the first large town after the tunnel exit.

Ashford is home to SBE-UK, an after-sales services company specialising in electronics, where they work. “Door-to-door, it takes an hour and a half, no more than if I worked in the Paris area,” Henissart explains.

He gains an hour on the outward journey, but loses it again on the way back, so he is rarely home before 8pm. But he would not change for anything. “The atmosphere in the UK is much more cosmopolitan and cheerful than in France,” he adds. “Above all there are more jobs.”

According to official figures published by the French ministry of labour, the number of unemployed rose by 0.8% in July, reaching 3.42 million, with unemployment affecting 10.2% of the active population, compared with 7.5% before the financial crisis. Across the channel, unemployment fell to 6.6% in June.

The contrast between the Nord-Pas de Calais region and Kent is more striking, despite only being separated by about 30km of sea. South of the water, unemployment stands at 13%, rising to 17% in Calais and Lens. In Ashford it barely exceeds 5%. In the first quarter of 2014 the growth rate was higher in Kent (3.3%) than the national average (3.2%), whereas in France it was below 0.5% for the same period.

With no reliable figures it is hard to say how many people from northern France commute through the channel tunnel to take advantage of Ashford’s booming economy. “Fewer than people say and certainly less than the economic gap between the two areas might suggest,” says Jo James, head of Kent Invicta chamber of commerce. For one thing travel is expensive: a one-way trip on the shuttle costs at least $38 and the ferry is at least as much.

But above all, although Eurostar operates a regular train service through the tunnel, not many trains stop at both Calais-Fréthun and Ashford International. “So many people from Pas de Calais could work there if only there were daily shuttles,” says Thaddée Segard, head of Opale Link, an organisation that campaigns for closer ties between Kent and the Opale coastline.

Segard would like to see a cross-channel Metro, using the Eurotunnel infrastructure but charging much lower prices. He claims this approach could substantially reduce unemployment in his area.

“It looks good on paper,” says the human resources manager of a Kent firm. “But it wouldn’t solve the structural problems in Pas de Calais, such as lack of training.”

Ashford boasts a thriving French community. Its presence is immediately noticeable in local shops, cafes and pubs. Most of the newcomers are executives, who have moved from the Paris area or Rhône-Alpes. They live in the town itself or in neighbouring villages. For example Bruno Gosset recently settled in Hythe, on the coast, about 15 minutes from Ashford.

“The quality of life here would be inconceivable in Paris or London,” says Gosset, head of R&D at Santé Verte, a food supplements specialist. His firm, started in 1998, is one of the many ventures French entrepreneurs have launched in Ashford.

“Twenty years ago, after the Channel tunnel opened, a stream of business people arrived from the continent, determined to take advantage of the lower taxes,” James says. One can see their point. Corporation tax ranges from 22% to 28%, compared with 33.3% in France. Social charges paid by employers on wages stand at almost 14% compared with nearly 50% across the channel. And the labour market is much more flexible in the UK.

“That’s what convinced me to move my company to Ashford in 1996,” says Olivier Cadic. At the time he was running Info Elec, an electronics firm. He is also a representative of the centrist Union of Democrats and Independents (UDI) at the Assembly of French Citizens Abroad. Extremely critical of the bureaucracy and heavy taxation in France, Cadic is all in favour of the British model. “The excessive tax burden saps the competitive edge of French firms,” he claims.

Few people still maintain that French entrepreneurs move here only to pay less tax. “The ones who only moved to Ashford for that reason have come unstuck,” James says. “It makes no sense without a solid business model,” says Olivier Morel, a partner at the Cripps law firm. “Ashford is only the promised land for people who make it a strategic asset.”

Though French employers appreciate its fiscal advantages, they confirm that Ashford’s main advantage is its position, less than two hours by train from Paris and 38 minutes from London.

“We can deliver all over France in 48 hours; we couldn’t do any better based in Lyon or Marseille,” Gosset explains. Every morning two lorries leave the warehouse for the shuttle. “The main thing is that we were able to break into the British market, not an easy task; it would have been impossible from the continent,” says Delphine Vernhes, export manager at Santé Verte.

The example of SBE confirms this. Originally based in Boulogne, the firm launched a UK subsidiary in 1998 to keep up with Motorola, one of its customers.

“We learned how to be inventive and responsive like the Anglo-Saxons, which enabled us to find new customers here, then abroad,” says Hervé Besème, head of SBE Ltd. The firm now operates in Poland, Belgium and Canada, and works for HTC, Sony, LG and Samsung.

Two years ago Julien Thierry, 28, launched Eclypsia, a web TV channel specialising in online video games and associated services. The company employs 50 people and its revenues are expected to grow. The decisive factor for this location was Ashford’s proximity to both London and Paris. The company has offices on the 10th floor of International House, overlooking the railway station. “It’s handy in every possible way,” says Thierry. “In France everything would have taken longer.”

Thierry’s medium-term aim is to develop an all-English version of his web TV. To do so he will be looking for backers in Paris and London.

Another argument in favour of Ashford is the price of business premises, with average rent more than 70% lower than central London. “It’s no coincidence if we can attract the head offices of international firms,” says Kate North, economic development officer at Ashford borough council. The names she cites include Givaudan (perfume), Verifone (secure payment) and Premier Foods.

Residential rents are lower than London or Paris too, a further advantage for Thierry, who brought most of his workforce over from France. With help from the chamber of commerce he was able to find them accommodation.

“We even had photos [of property] to choose from before we arrived,” says Boris Vyle, who joined the company in 2013, heading the development team. Every weekend he drives back to his family in Lille, taking the shuttle, bien sur.

Calais hospital dreams of more English patients

Any mention of the channel tunnel sets Martin Trelcat, head of Calais hospital, dreaming. “Hundreds of British people arrive here every day, by train or ferry, and go shopping to take advantage of the lower prices,” he says. “What’s to stop them coming here for treatment too?”

In practice, about 10 Kent residents are treated at the hospital in Calais every month. Thanks to an EU directive, issued in 2011 and put on the statute books in the United Kingdom two years later, this is permitted – for about 140 categories of treatment – provided a patient’s general practitioner agrees and signs the relevant form.

The cost is covered by the NHS, in the UK, or private insurance schemes. “We could treat up to 300 British patients a year,” Trelcat says, pointing out that hospital staff are having English lessons.

He reckons everyone would benefit, with shorter waiting lists in Kent and a chance for his recently refurbished establishment to operate at full capacity. “Calais hospital is afraid of being slightly too big for the local population,” says a doctor.

In partnership with local trade and business Trelcat has even considered creating all-in packages for patients and their family, with hotel accommodation and guided tours. “It would enable us to develop a real cross-border medical service, similar to the links between Hirson [France] and Chimay [Belgium],” he explains.

To attract patients, Calais hospital would like to appear on the NHS “map” to raise awareness of this option among GPs in Kent. But this would require the approval of the British authorities. Marie Charrel

These articles appeared in Guardian Weekly, which incorporates material from Le Monde