Nice idea but

To achieve a revival of manufacturing the Government needs urgently to establish an industry bank charged with making investment decisions on commercial grounds.

How are you going to achieve this? How are you going to take the political meddling out of who gets a loan?

Quite, you can\’t can you?

5 comments on “Nice idea but

  1. To achieve a revival in manufacturing you first need:

    A product that someone wants to buy. They go by the name of customers and that dreaded word, consumers.

    And,

    The ability to produce that product at a price and quality those customers are willing to pay whilst making enough to repay any loans and share capital.

    Only then is it worth talking to banks about said loans.

    Anything else is politicians picking winners.

    Even if you accept that politicians can pick winners, or that they are no worse than anyone else, the problems come when those businesses fail to deliver their forecast returns. This happens and when it does someone has to make the tough decision to shut it down and that’s where history shows that politicians fail.

  2. How about just removing pointless and expensive regulations that make manufaturers lives difficult? Sorry that would mean leaving the EU.

  3. If investment decisions are made on commercial grounds, then the existing banks would make the loans already. The whole point of a new “industrial” bank is that it should make loans which are not available on commercial grounds.

  4. “KfW lent record sums: €30bn in 2010 alone, creating 66,000 jobs.”

    So, 500,000 euros per job? Williams F1 is valued at €165m and has 520 staff, or 317,000 euros per job.

    Why is the government paying more for jobs than the higher end of the private sector does?

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