#226 – PLANNING, UK GOVERNMENT INITIATIVES, & INDOLENCE, THE I’S HAVE IT! – MALCOLM PEART

Planning has been said to be more important the plan.  This is at all levels from planning a dinner party and finding out if a guest has an allergy to changing the way in which a country can deal with its industry in an ever changing world and considering its position in a global market. 

Recently, after several decades of negotiating their way into a marriage with Europe and in a spectacular overnight vote in June 2016, with a paucity of planning and forethought or awareness, the UK decided to get a divorce – no marriage guidance counsellors for us Brits!

The move from Europe was one thing but the recent attitude of the Government to its support of British industry, at least those elements that are not in foreign hands, must worry those soon-to-be divorcees.  Will British industry struggle in a more open market competing with countries with benevolent Governments who outwardly support their industries both at home and abroad?

In January 2018 a major British contractor, Carillion, collapsed financially and prompted a UK Parliamentary enquiry.  The former CEO received no sympathy from MPs regarding Carillion’s efforts in the Middle East.  The MPs apparently demanded to know why Carillion would enter such a risky project in the first place…not enough work in UK perchance and too many foreign companies now invading UK?

Are UK politicians merely self proclaimed leaders and popularity seeking despots who find sitting on the fence the most comfortable position to take.  Does this allow them to judge British businessmen who dare to take risks; and are those politicians really interested in this island nation of Britain that was once ‘Great Britain’ or themselves?

MPs of the British Government are also embarking on a world-wide campaign of promoting British industry, British products and British companies as they resurrect the old battle cries of “Buy British” and “British is Best”.  Necessity is the mother of invention and BREXIT, the divorce from Europe, will leave this soon-to-be single Britannia to be self-reliant (again).

Politicians were once people’s representatives but are now referred to as ‘leaders’ and more grandiosely, ‘law makers’ of the 21st century as opposed to simply “Members of Parliament” of yesteryear.  They are increasingly involved in, apparently, being seen to lead industry, promote trade while feathering their own political party’s reputation and possibly creating their own future lecture circuits.  But are they prepared for the downside and harsh reality of working in the international arena?

Perhaps they should try living overseas and contact a British Embassy as a ‘normal British citizen’ and seek some assistance.  They may then experience being fobbed off with a link to a website or advised to make an appointment in a few weeks time.  Similarly, British companies are supported in a similar offhand manner which is contrary to our European competitors whose governments seem to be far more interested.

UK Government ministers have declared that it’s not the state’s job to bail out a listed company.  But the State awarded projects worth £1.6bn to that company in the first place despite an obvious faux pas on the Government’s side.  Is the current bluster and posturing just a case of one party in trouble getting in with their version of the truth first and hoping to divert blame somewhere else?

There was a third party to this parliamentary enquiry but they, in true political style, have not been included or given an opportunity to speak.  This third party, as it were, is that silent majority that includes the tax payers in the supply chain affected by this business collapse.  The direct parties to the collapse defend themselves and blame others.  However, both contributed to a collapse that has affected the tax payers who rely on, and pay for the State to make informed decisions and, we are lead to believe, look after the people’s best interests.

So, the UK Government won’t bail out a single British company.  MPs can’t understand some foreign government not paying; welcome to the real world.  In this uncertain environment of BREXIT with a government hell bent on garnering international trade and hoping for another term in power, is the ‘advertising’ by these MPs coming from a position of strength or one of desperation?  A drowning man will clutch at a straw, but the owner of that straw knows that a desperate man will do anything.  Are our politicians really skilled in international trade talks and making a deal, or are they just voice pieces?

Is the British trade drive coming from a position of strength or does the economic world know that without Europe and the ‘common market’ Britain has now become a ‘new entrant’ based on changed circumstances. Porters Five Forces tells us that new entrants can find it tough and the bargaining power of the supplier and buyer are paramount to competitiveness and survival.

Is the Government, just like a slick-talking salesman, only around to open business doors, broker trade and then walk away with the promise of sales and an order or two which makes turnover look good?  On the back of the promise of turnover for the UK is a speculation of profit and enthusiasm abounds.  However, just as a salesman who sells and then ‘earns’ a bonus on turnover, the politicians who appear to be winning trade are merely garnering votes based on popularity and sentiment.

But, in the real world of economics it’s only at the end of any sale that profit, or loss, is calculated.  No matter what budget forecasts tell us and cash flows predict it’s only when your bank statement shows cash in hand that one can rest easy and pay bills.

When the proverbial sh*t hits the fan and there is a realisation that there is no cash in the coffers we hear cries from the salesman of ‘caveat emptor‘ while the British Government cries ‘caveat venditor‘.  Based on the views of some MPs the government is divorced from industry, and even more so when that industry participant is in difficulty.  The British Government are the sales division for a ‘company’ that used to be called “Great Britain” and should be a responsible and accountable as part of Britain United with a responsibility for all who sale [sic] in her.

This nation and its assets are potentially up for grabs as a consequence of this illegal 21st Century initiative to leave Europe.  The politicians who promoted BREXIT had no apparent plans for this ‘initiative’.  Some proponents even ran away after ‘winning’ which is most perplexing given that some characters are still waiting in the political aisles for an opportunity to keep power; what short memories we have.

The uninformed British public cast a dubious vote to allow politicians to go ahead with the divorce and, as they say, “we are where we are“.  Our politicians are going through the divorce proceedings but are they able to negotiate?  What bargaining power do they really have for this island nation that has perhaps never really seen itself as ‘European’?

And then there are the foreign rivals beyond Europe who own some of Britain’s businesses.  These were acquired on the back of Britain being part of Europe; will these foreign owners now leave and go to the greener pastures…Britain has a green party but Europe’s is larger.

Will the Government learn that Britain, once Great Britain and now the United Kingdom on scroll-down menus, may require the Government to support British industry.  It’s about planning and not just ad hoc, gung ho, jingoistic promoting and flag waving.  And when the going gets tough it should not include hanging our industries out to dry or selling them…only time and economics will tell.

Bio:

UK Chartered Engineer & Chartered Geologist with over thirty-five years’ international experience in multicultural environments on large multidisciplinary infrastructure projects including rail, metro, hydro, airports, tunnels, roads and bridges. Skills include project management, contract administration & procurement, and design & construction management skills as Client, Consultant, and Contractor.