I’ve often debated with others and myself about foreign ownership of UK manufacturing and I’ve come to conclusion that it’s better to have manufacturing and workforce in the UK than the corporation tax the government is missing out on
For a number of reasons
Jobs means PAYE tax revenues
Jobs means local economies thriving
Jobs means local supply chains
Jobs means training and knowledge
Whereas a wholly owned UK company doesn’t guarantee any profit or any income from corporation tax or any shareholder wealth
Just about all the large UK sited manufacturers owned abroad will make sure that the profit from everything they do here will go back to the country of domicile. usually in car manufacturing it’s through buying an expensive part or parts artificially inflated from that country
With Honda in the 80’s it was the gearbox which came from Japan
One of the governments major problems these days is the relative decline in company tax revenuse as companies are sold or domicile in cheap countries like Eire. The result under this government is tighter spending. Under Corby it will mean higher taxes on the middle classes - like you!
Yes ownership nationality matters a lot. Every time Nissan contemplate a new model they have to be bribed by the government to build here rather than elsewhere, and the same with every other car builder. The component manufacturing industry is decimated by foreign assemblers - over 60 % of the components used by the motor industry are now imported and it rioses every year. Thats a loss of jobs and profits and skills. The jobs created in the screwdriver assembly plants are lower skilled - Honda UK cars arent designed here for example. Management skills are weakened because of the senior foreign management involved. Corp[oration tax receipts go elsewhere. And finally there is no loyalty to the UK at all - no way would Renault move out of France but every single UK assembler could move out and likely will post brexit.
All theese are the reasons that the French have national champions. Our policy is to sell off everything
