Lord Jim wrote:Jesus, just tried to read the version Ron5 linked to, and I thought some of the Robo translations on You Tube were bad.
Regarding the contract, my view is the same, If Babcock and BAe can build the ships for the same price as an overseas builder, with support form the DTI if necessary then that is fine. But the Defence Budget is not there to support or create jobs so if they cannot then the contract should go to the best value company.
Doesn't that rather depend on how you calculate the price?
If you calculate it as the money paid by HMG via the MoD minus:
a) that part of the money returned to HMG via taxes to the Treasury
b) the money that would have to be paid by HMG via MoWP to the layed off workers in unemployment benefit
c) the money collected by HMG in taxes resulting from other sales of the product itself or any of the systems/parts developed for the ship
In other words, other countries like France, Italy, Spain, Korea & Russia, massively subsidize their naval shipbuilding because of the national benefits of spending their tax payer money in their own country.
The UK, quite rightly, doesn't believe in subsidizing UK ship building (well at least the conservatives don't) so it needs to develop a mechanism to award the work to UK enterprises to be performed in the UK, without unduly penalizing the MoD and it's very limited budget.
To me this is so blindingly obvious but the finest minds in the UK Treasury (and there are some very fine ones if their educational qualifications are to be believed) are quite unable/unwilling to find a solution.
I fear they cling to Gordon Brown's globalization fantasy where in a perfect world everything is performed wherever it can be done most efficiently. So labor intensive work in countries with low labor costs and highly skilled work (ike services) performed in highly developed countries like the UK.
Of course this is total bullshit because if only a handful of countries work this way, they will be exploited by those countries that put themselves first. Look at the barriers China has put in place to keep out US and UK high skilled businesses. Look at the way China flaunts IP ownership rights and steals ideas/designs.