Can Whet & Ashie explain this?

Discussion in 'Current Affairs, News and Analysis' started by Semper_Flexibilis, Dec 3, 2009.

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  1. Maybe Labour should change it's name to the City Slickers Party? :wink:

    Manufacturing fades under Labour

    By Chris Giles, Economics Editor
    Published: December 2 2009 23:01 | Last updated: December 2 2009 23:01

    The importance of manufacturing to the economy declined more rapidly under Labour administrations since 1997 than it did during the Margaret Thatcher era, according to a Financial Times study.

    The big winners in the same period were bankers, estate agents and public sector workers, whose sectors’ share of output increased under the Labour governments of Tony Blair, the former prime minister, and Gordon Brown, his successor. The findings about the state of the economy were uncovered during a study of data held by the Office for National Statistics.

    Manufacturing accounted for more than 20 per cent of the economy in 1997, when Labour came to power critical of the country having too narrow an industrial base. But by 2007, that share had declined to 12.4 per cent.

    Although the recession of the early 1980s dealt a permanent blow to the industrial heartlands, the relative devastation of manufacturing during the past 12 years has been almost three times faster.

    Manufacturing also bore the brunt of output losses in the most recent recession, sending its share of the economy lower, to a little over 11 per cent.

    The near halving of the importance of manufacturing to the economy over 12 years is in stark contrast to the reduction from 25.8 per cent to 22.5 per cent of output that occurred under the Conservative governments of the now Lady Thatcher.

    Labour ministers still cite the 1980s as the period when the economy changed.

    Lord Mandelson, the business secretary, told the FT last week: “In the 1980s and 1990s, we as a country did not do enough to encourage manufacturing and this approach led to colossal economic damage”.

    As manufacturing has declined, other sectors have been on the rise. Under Labour, real estate has risen from 12.6 per cent of the economy to an estimated 16.2 per cent now. Banks, building societies and other financial services have seen their share of output rise from 6.6 per cent to 9.1 per cent.

    Health and education have gained importance as the government devoted greater resources to the sectors since 2000.

    Healthcare has increased its share of value added from 6.2 per cent to an estimated 7.9 per cent this year, while education has risen from 5.3 per cent to 6.2 per cent

    While the recession has dealt a heavy blow to manufacturing, it has also hit the poorest regions hardest.

    A report by the Joseph Rowntree Foundation on Thursday suggests that poverty is rising across the country. Dr Peter Kenway, director of the New Policy Institute and the co-author of the report, said: “On the core subjects of low income and employment, the picture is bleak.

    “In particular, it is not just a question of ‘recovering from the recession’ since things started going seriously wrong as long ago as 2004.”

    London, Leeds and Edinburgh have seen business and financial services dominate growth, while in many more deprived areas, the rising output of public services has taken over as the engine of expansion.
  2. Of course they can, It all stems from Margerat Thatchers years in power.
  3. maninblack

    maninblack LE Book Reviewer

    Don't be so naieve, it is all the fault of Churchill for not overturning the policies of Arthur Wellseley; Those damned fascists and their 200 year grip on authority. Had Karl Marx had the balls to be born 100 years earlier the workers would have united and seized control of the power of manufacture....sorry, I am suddenly in breach of copyright of The Socialist Worker. Amagazine written and sold by those who have never had a job outside of the public sector (local council)
  4. So Oil_Slick, you think the labour governemnt should have spent our taxes propping up unprofitable manufacturing industries
  5. "So Oil_Slick, you think the labour governemnt should have spent our taxes propping up unprofitable manufacturing industries"

    Err like MG Rover and the management team that Byers managed to cobble together, or the builders (eventually) of the 2 Aircraft Carriers for the Navy? Or the Billions "invested" in schools and education where the standards have slipped lower than ever with 1 in 4 11 year olds unable reach the standards in reading and writing and mathematics.

    What hope for our country's future if the generation that leaves school now is poorly educated.

  6. You think that's an accident bob?

    One thing Labour wants is a large docile client class that lacks the intellectual capacity to think objectively or ask questions and will always take what the government spoon feeds them as 'truth'. They know they can't change our generation, so they took a page straight out of the Hitler Jugend Book of Schooling.

    All hail the X Factor generation.
  7. So Oil_Slick, you think the labour governemnt should have spent our taxes propping up unprofitable manufacturing industries
  8. maguire

    maguire LE Book Reviewer

    be fair - it was either that or prop up unprofitable banks, after all.

    oh, and why are we STILL in recession despite every protestation of the monocular nose picker to the contrary?
  9. Can't really ignore the influence of the manufacturing boom in China over the same time period. Obviously not the prime cause, but I'd still wager it has made a significant portion of the loss.

    Anyway we've just become more of a tertiary sector economy, its where the majority of our skillbase lies, I don't know why you would expect it to go any other way. We have more graduates now, so we have more graduate based employment and industry... It's not exactly Labours fault that we have a greater majority of skilled rather than unskilled workers.
  10. Without a manufacturing base, sooner or later it'll all end in tears.....

    .....or poverty.....

    ......or both. :cry:
  11. My friend's son just graduated from Imperial Collage London.
    I am assured that over 2/3rds of the graduates where from East Asian counties mainly Chinese.
    Britain must learn to turn out Homegrown Engineers.
  12. It truly is a sad commentary about the decline of British manufacturing. It is a similar situation here in the US.

    When I was a boy (and dinosaurs roamed the earth) British manufacture was a hallmark of quality. British made woolens and clothing were outstanding but pricy in the US. My dad's work took him to Canada fairly frequently and he would bring back duffel coats and tweed jackets for me and skirts for my mother. (British goods were cheaper in Canada then) In 1957 he brought back a tartan skirt for my mom. She later passed it on to my wife and my (now former) wife still wears the skirt 52 years later. In 1972 I bought a Harris Tweed jacket in Scotland and I could still wear it but for the fact that it is now too snug across the stomach. (I wish I could say the jacket shrank but that is not the problem).

    Britain was a world leader in mechanical and engineering manufacture: Triumph cars and motorcycles, BSA mototcycles, Raleigh bikes etc. When I was a boy Raleigh was the most desired bike and was a prestige possession for a 10 or 12 year old. Much nicer than a Schwinn or a Huffy. In 1959 my gran gave me a new Raleigh 3 speed with a Sturmey Archer gear and a Brooks saddle. Lovely bike with nuts in bolts in odd British sizes called Whitworth. My dad bought me a little set of wrenches/spanners that would fit all of the bolts. The wrenches were made in the UK by a British company (perhaps now defunct) with the improbable name of "King Dick" and "King Dick" was stamped on each wrench, providing amusement to my friends. Now all Raleighs, at least those sold here, are made in Asia, Sturmey Archer is now a Taiwan company. That 1959 bike is still in my shed and I use it to pedal down the street to the beach (being a lazy fecker). It still works fine if I give it an occasional squirt of oil and has had no repairs other than tires and brake pads. Quality craftsmanship.

    Things are much the same here in the US. Many quality US brands have become US in name only. The brand name is American but the fine print on the label says China, Taiwan, Malaysia, Korea .... There no longer is a single TV made in the US. When Obama took over there were a few changes in the "Cash for clunkers" program designed to increase auto sales. supposedly for environmental reasons. A recent report on the program that was supposed to help our auto industry shows that over half the cars purchased under the program are Japanese. I wonder why we can't let the Japs use their own tax money to stimulate their industry.

    If it makes my British friends feel better, the electicity company that lights my house, cooks my food and provides how water to wash and shave is called National Grid and is from the UK and my local supermarket is part of Sainsbury, owned by your Lord Sainsbury. (at least the last time I looked, maybe that has been bought by the Chinese or the Indians)

    I think both of our governments should focus on keeping jobs at home. I drive an American made car and I promise you that if I ever get an import it will be British.
  13. The manufacturing side of UK Plc was always going to be doomed when the unions had too much power. This ultimately forced the manufacturing companies to move from the UK to a cheaper base. Successive governments (of both main parties) have failed to support the maufacuring base of the country and hence other industries have been forced to downgrade the skills of the UK to what we have now.

    The existing companies are forced to comply with stupid costly rules and regulations foisted upon them by the EU and this is forcing them to spend valuable time and money filling in forms rather than making things.

    Start up and running costs will not IMO, make anyone start a company involved in the manufacturing base of the UK. So the only other option is to use the downgraded skillbase of UK plc and run call centres, government sector jobs, estate agents etc.
  14. One of the problems we face is that in the days of the Empire massive amounts of manufacturing was done here in UK. Raw materials had to be shipped from the commonwealth to the mother land to be turned into finished goods and this continued, albeit in gentle decline, until just after the second world war. The problem we seem to have is that the Empire is no more and there is no reason for us to have the huge manufacturing base that we did have. However Liebour and others do not see it that way and still harp on about the 'good old days' of British manufacturing. They do not seem to be able to grasp that manufacturing requires a) the raw materials, b) a cost effective manufacturing process and c) a market to sell your products. If you cannot deliver the products to the market place at a competitive price you have no industry.

    Unfortunately the current providers of manufactured goods are able to undercut our goods by a considerable margin so instead of sitting back and whinging we need to compete but we cannot do that when we are hamstrung by unrealistic views from government and the unions.

    Wow, this is a bit heavy for this time of day.
  15. You are kidding me right, you sure this isn't a WAH. What Government has said that ALL pupils should have the right to go to uni, what government has spent millions on extra Uni places while ignoring the artisan trades. While we have to import the basic skilled workers we have an "educated" class who can make or do fuckall because there are only so many jobs you can get with a media studies degree.

    And what the fcuk IS media studies anyway??