Home » post-Brexit

Category Archives: post-Brexit

Categories

Join 19,592 other followers

A Vision of Manufacturing in Post-Brexit Britain

by John Brian Shannon

post-Brexit British manufacturing model

McLaren celebrates their 5000th supercar on February 2, 2015. Image courtesy of compositestoday.com

Yes folks, it really does take that many people to build a McLaren supercar!

In fact, it takes many thousands of people combining forces to build any car, aircraft, or other modern and/or technologically advanced vehicle.

And the point of this blog post is to show that the UK can add one million manufacturing jobs in the automotive sector alone, just by adopting the right policies — policies that help foreign automakers become ‘part of the solution instead of part of the problem.’

So, please bear with me while I show you how the UK could emerge a winner in the post-Brexit timeframe, create millions of homegrown jobs, boost the economy like never before, and supercharge UK manufacturing exports.

If you like the sound of that, then you’re a British patriot and you want the best for your country. I salute you!

(If you’re a foreign car manufacturer, don’t panic, it’ll work out for you too in the post-Brexit era. Just keep reading ’til the end)


UK Slaps a £25,000 Tariff on any Car or Truck (New or Used) That’s Imported After Brexit

WOW! That got your attention, didn’t it?

It’s not as bad as it sounds, because every auto manufacturer would be invited to establish their headquarters for all Commonwealth of Nations countries (and this blogger suggests) that the UK government should provide brand-new, free-of-charge, turnkey factories to every auto manufacturer that wants to build cars and trucks in the UK and sell them to every Commonwealth of Nations country including the UK.

Remember, The Commonwealth comprises 53 countries with a combined population of 2.5 billion people by 2020 and a combined GDP that nearly matches the U.S.A.

The UK alone, is the 5th-largest economy in the world by GDP (6th by PPP) and India is the 6th-largest economy in the world by GDP (5th by PPP) and other countries in the Commonwealth include Canada (10th) Australia (13th) Nigeria (30th) South Africa (33rd) and Pakistan (40th) and many others whose economies are rocketing upwards in this young century.

Nigeria alone will have more citizens than the United States by 2060. Maybe sooner.

How many auto manufacturers want enhanced access to 2.5 billion consumers, most of whom live in rapidly growing economies with upward disposable income?

The Commonwealth consumers not living in those burgeoning economies live in developed nations with high per capita incomes like the UK, Canada, Australia, New Zealand and Singapore.

Brand-new, ‘build to suit’ factories, paid for and owned by the UK government, leased to each manufacturer for £1 per year — with the benefit of no UK or Commonwealth tariffs ever, and streamlined access to 2.5 billion Commonwealth of Nations consumers.

If you’re a global auto manufacturer, you can’t lose!


Why Would Commonwealth Nations Agree to This Plan?

The UK unemployment rate is low at present, and falling each year.

In 2019, the UK unemployment rate sits at 3.8% and you’ll remember from your economics class that 2.5% unemployment is functionally a 0% unemployment rate — as exactly that many people are in some kind of transitory employment state without being actually unemployed — such as workers who’ve quit one job and are taking 2-weeks off from any work before starting their new job, or workers who’ve retired recently and have yet to file the paperwork that indicates their new status to government statisticians.

Which means the UK is 1.3% away from zero functional unemployment even with all the Brexit uncertainty due to the overly-long negotiating period. (3.8% – 2.5% = 1.3%)

Q: In the immediate Post-Brexit era and assuming a (functional) 0% unemployment rate in the UK, who will the UK call-on to fill perhaps a million new manufacturing jobs?

A: The Commonwealth of Nations countries, that’s who.

And that’s the benefit of being a member of a large and diverse bloc such as the Commonwealth. For the UK, membership in that group means a huge pool of highly motivated workers ready to jump on a plane and begin working in the UK immediately.

For Commonwealth countries, it means hundreds of thousands of their young people will have good paying jobs waiting for them in the UK at the end of their schooling, and good kids will send some money home to Mom and Dad — who after all, probably paid for their child’s entire education and airfare to the UK.

Workers who show up on-time and do a good job will of course be invited to stay on where the manufacturing continues year ’round, or find themselves invited to return to the UK by their company at the beginning of the next production cycle.

For the UK, this plan would reduce UK unemployment to zero, then allow any additional labour to be sourced from Commonwealth of Nations countries.

For foreign auto manufacturers, this plan would provide a specially-built for them factory at a cost of £1 per year, and guarantee them no automotive tariffs in the UK and other Commonwealth of Nations countries.


Saving Money, Streamlining Production, Centralizing Administration

Let’s pretend at present that Ford Motor Company builds the F-150 pickup truck in different Commonwealth nations and earns low profit per vehicle because the sales numbers in each country don’t quite support one factory per country. And all of its vehicles are subject to a plethora of different tariffs and fees depending upon where those F-150’s are built and where Ford is shipping them. Very inefficient!

But if Ford Motor Company decides to build all of its UK and Commonwealth-destined F-150’s in the UK, it means that one humongous factory in Britain could build all of them. There are economies of scale in that approach! And to have the land and building built and paid for by the UK government guarantees the economics work for Ford.

All Ford must decide is where in the UK it wants the factory, which car lines or trucks to build in the factory, and pay an annual £1 rent payment to the UK government.

And no tariffs in any Commonwealth nation, including the UK. Ever.


But This is An Expensive Plan!

No, not really. Especially when you factor-in some of the possible alternatives.

Such as the entire auto manufacturing sector in the UK dying completely. Which is happening in slow-motion anyway. (Rolls-Royce, Bentley, JLR, Mini, Lotus, Triumph, MG, Rover cars, BSA motorcycles, etc. are almost gone, or already gone)

There go a million existing UK jobs! (For just one example of it going wrong) And there go the additional one million UK jobs I’ve proposed.

But if UK unemployment hits 0% in the UK as I expect AND if one million new auto manufacturing jobs are created via this proposal, that means (on average) each of those additional one million auto workers will pay an average £20,000. income tax annually, and thousands of pounds in other taxes on their discretionary spending because almost every time you buy something in the UK you pay some kind of tax on it. New house, new car, new baby pram, you get the idea.

What is one million times £20,000. anyway? That’s £20 billion annually in income tax revenue HM government isn’t presently earning.

It’s even better if those one million additional workers spend every pound sterling they earn on taxable items in the UK. Maybe twice as good as the calculation above shows.

Check the math: 1,000,000 x £20,000. = £20,000,000,000. annual income tax revenue alone.
Over 10-years, that equals ‭£200,000,000,000‬. in tax revenue alone.


Remember: This is Just One Example of Why Britons Shouldn’t be Shrinking Back from Brexit!

Whether we’re talking Volkswagen Golf, BMW 5 Series, Audi A8, or whatever car you want to buy in the UK — if they don’t build them in the UK after Brexit — each vehicle would be subject to a £25,000 tariff.

Because at present, those cars are built in the EU, by EU companies, by EU workers, in EU-subsidized factories — and the UK is getting no benefit whatsoever — other than UK drivers are encouraged by slick advertising to hand over their hard earned money to EU car manufacturers.

However, if they build them in the UK — a no automobile tariff regime would apply anywhere in the Commonwealth of Nations, under this proposal.

I posit that vehicles destined for the UK and Commonwealth market could and should be built in Britain, and by adopting better policies, UK manufacturing will succeed as never before!

A Day in London: 2020

by John Brian Shannon

Welcome to London, 2020. You’re in the former Battersea Power Station where the British International Motor Show is being held this week!

Artist rendering of the renovated Battersea Power Station in London, UK that will be home to Apple Inc.

Artist rendering of the renovated Battersea Power Station in London, UK — Apple’s UK & Commonwealth HQ. Business Insider

Apple Inc’s new UK & Commonwealth HQ is full of Alan Turing-esqe brilliant people glad to be hosting the show in their auric new building — and for the first time anywhere, iDrive (Apple’s shiny new hydrogen powered car) is on public display.

Aside from its obviously stunning design, the best thing about this car is that it can’t be stolen because unless the owner of the car is within a few feet of the car with his/her iPhone on and logged-in to the iDrive app, it is just a piece of aluminum, glass and plastic that can’t go anywhere. There’s no computer or operating system to allow the car do anything at all, save for the iDrive app in your iPhone or iPad.

apple icar concept car in london, uk

Early Apple iCar concept.

No iPhone or iPad? Then you’re not the owner of the car. Because a matching serial number iPhone & iPad is provided with each Apple Car, with thumbprint security and as many passwords or login captchas as you want. It’s up to you.

Even if someone steals your iPhone and manages to locate your car, you can always “Log out of all devices and apps” remotely from any computer or smart phone on the planet — including the app that drives your beautiful new Apple Car. (Stolen car coasts to side of road, wholly inactive)

Now, that’s what I call a user-friendly car ownership experience.


And Brexit, You Ask? Pshaw!

Brexit came and went a long time ago. Neither Project Fear or the extreme Brexiteers were right; The UK coasted through 2019, Brexiting on March 29 as scheduled and other than a temporary blip in the markets things continued as normal. Yes, even the Sun rose in the sky the next day. Astonishing!

But not really. For all the hype, compared to other events taking place in the world Brexit turned out to be a sideshow. Only hyperventilating European politicians on both sides of the English Channel noticed Brexit.

After dipping to 1.2% GDP growth in 2019, the UK recovered and is now looking at 2% growth for 2021 — not due to Brexit — but due to the fact that Remainers are no longer sabotaging the UK economy hoping for it to fail so they could get their way.

Since the summer of 2019, the UK joined the USMCA (the new NAFTA agreement) and the CPTPP, and the new Commonwealth of Nations Free Trade Accord (CNFTA). In 2020, the UK has signed trade agreements with countries that have a combined population of 5 billion+ people.

A free trade deal with the EU (based on the excellent CETA agreement the EU has with Canada) is expected to be signed by the end of 2020 and go into effect on January 1, 2021.

Food shortages, rioting, family strife, civil war? Not a bit of it.

Every politician who tried to make a career out of Brexit is gone. Whether extreme Brexiteer, extreme Remainer, whether continental European or Briton; Every politician who held an extreme Brexit position was invited by their respective parties (and voters, hehehe) to leave politics.

Enjoy the day Britons, legal migrants to the UK, and visitors! You’ve earned it.

Oh, and the UK and the EU signed a modified Withdrawal Agreement on the 11th-hour of March 28th, 2019. But you knew that.

Immigration in the Post-Brexit World

by John Brian Shannon

The days of a foreign power deciding how many people can live in the UK are rapidly closing. On any date past March 29, 2019 the UK government could decide to radically alter the future of Great Britain. And that’s a very good thing.


The Days of Unrestricted Immigration to the UK Are Soon Over

Until now, the UK has been forced to accept both new residents and transients who easily pass through the EU’s porous border control system called the Schengen Area (visit here to see a list of Schengen countries) where anyone from anywhere can simply walk across the border and are rarely challenged or identified by authorities.

Which is one thing if your country is on the outer rim of the Schengen Area and those undocumented people are walking through your country to get to another country; It’s quite another if your country is their destination.


8-Million Immigrants Later; UK Police & Security Services Know Surprisingly Little About Who Those Immigrants Are

And that’s the reason the UK has 8-million (mostly unknown) refugees and economic migrants. It’s a wonder there hasn’t been 10-times as many terrorist acts! A million thanks to the overworked police and to the security services who surely have more pressing matters to attend to, for keeping 99.999% of Britons safe from harm.


The Hidden Cost of Unregulated Immigration

Regardless, there is still a cost to all this additional policing and security work — whether that cost is under-serving other police and security files, or devoting more of their police and security service budgets to identifying and tracking imported (potential) problem people.

Yet the majority of refugees and economic migrants are decent people who want nothing more than to find a better life (in our UK that our forefathers built and fought for) and are prepared to work hard to accomplish that goal. But many aren’t.

And we don’t know who is who in that opaque world and we may never know as few have been vetted to a standard where we even know their names, their criminal background (if any) and other important information about them like their level of education, history of exposure to communicable diseases, extreme religious views, etc.


Getting Selective with UK Immigration

Once the UK regains control of its borders, the country can be very selective of who it allows into the country, but if a person lacks important inoculations like Chickenpox (varicella), Diphtheria, Haemophilus influenzae type b (Hib), Hepatitis B, Influenza, Measles, Meningococcal meningitis, Mumps, etc., (it’s a much longer list than that, FYI) those inoculations could be administered at any UK port of entry to protect that person and simultaneously protect all Britons from some nasty foreign diseases.

It’s far less costly in lives and in pounds sterling to provide those inoculations in advance than to allow the next contagious virus to infect 100,000 people because someone didn’t get £40 worth of vaccine at the border.

Each UK port of entry should have enough Doctors and Nurses to administer such vaccines to Britons at no cost (as infected people may unknowingly carry viruses into the UK population when returning from countries where the Zika Virus etc., are prevalent) and for the very same reasons, such injections should be free (and required) to refugees and economic migrants at every UK port of entry.


Proper Police Screening post-Brexit

With proper vetting procedures in place, the UK will never again import another terrorist or criminal entity if every refugee and economic migrant is required to produce a paper copy of a criminal records check from their country of origin as they enter the UK.

To speed throughput times at UK ports of entry, the Border Force should create a secure section on their website to accept digital copies of such documents to be submitted in advance of travel to the UK.

Such documentation should be viewed online by Border Force officers prior to each plane landing or each ship docking at any UK port of entry — then that person can hand the official paper copy to the border guard as they pass through the border control turnstiles.


Choosing the ‘Right’ Immigrants

In some years, the UK may find it has a shortage of History professors, while other years it may have a shortage of farm labourers (for two examples) but when the UK government regains control of immigration it can decide in advance how many of each to let into the country.

In other years it may be the case that the UK requires more engineers, General Physicians or construction workers; But when you’re in full control of your immigration you can allow exactly the number of people into the country every year that you need. And none that you don’t.


Seasonal Foreign Workers Should be Pre-approved by the Border Force and Should Always Originate From Commonwealth Nations

Which is why the UK government should create a special category for seasonal farm workers so they can be efficiently notified by the Border Force website as soon as they are required for the season. (‘It’s time to pack your bags for your flight to Britain!’)

Such seasonal workers should be required to pay an annual £100 application fee and provide a digital copy of their criminal records check to the Border Force in advance via a secure website set up for that purpose.

If they don’t get hired, their deposit would be returned to them at the end of the year. If they are hired by their UK employer permanently, they would pay £100 per year thenceforth.

Once the Border Force has been notified by the relevant UK government department to allow (for example) 58,750 pre-approved seasonal workers into the country, they can easily accomplish this task by consulting the Commonwealth master list.

Large farm operators may decide to pay the £100 application fee on behalf of each person they hire from abroad and may also assist them in other ways such as picking them up at the airport and transporting them directly to their accommodations on the farm, etc.

This sort of ‘sponsor’ relationship between workers and their UK employers should be strongly encouraged by the government as it will dramatically minimize false applicants — those who never report to the farm and then go on to (unknown) activities in the UK.


All Other Foreign Workers Should be Pre-approved by the Border Force and Should Always Originate from The Commonwealth and the U.S.A.

To assist the UK economy during periods of peak manufacturing, or when the service sector requires more workers than are available in the UK, Britain’s businesses could draw from a pre-approved Border Force list of up to 1-million potential workers.

Pre-approved in this case means that such persons have proved their interest in working in the UK by prepaying their £100 annual fee to the Border Force, and have provided a recent copy of their criminal records check to the secure area within the Border Force website.

If they don’t get hired, their deposit would be returned to them at the end of the year. If they are hired by their UK employer permanently, they would pay £100 per year thenceforth.

Note to busy employers: It doesn’t mean they’ll automatically be appropriate to the particular job you want them to do or that the Border Force has their CV digitally stored on the Border Force website — but it will mean they aren’t a criminal or a terrorist and that they’ve taken the right steps to ensure they’re on the pre-approved list to work in Britain.

As soon as your telephone or Skype interviews are concluded, your new employee could be on the job in one day as all government paperwork would already be done months or weeks prior to your call.

Once supersonic airline flights resume between London and New York, your new employee from America can arrive before noon on the same day you approve them, and your HR department can give them the full orientation of your London office building that afternoon so they know where to park their rental car the next morning.

The UK would be the first country in the world to utilise such ‘Just In Time Labour’ in the same way the manufacturing sector has used ‘Just In Time Delivery’ to such good effect since 1990.


The Only (New) Immigrants to the UK would be Pre-approved by the Border Force and by Employers

Now How do You Feel About Immigration?

Isn’t that a better solution than having millions of undocumented people streaming into the UK sans job offers, proper inoculations, criminal records checks, and without any purpose in life other than to escape the problems in their own country?

Even if the number of annual immigrants to the UK were to increase post-Brexit (it won’t) the total number will be less relevant overall — as every one of them will be pre-approved and invited into the country by their employers — rather than millions of them just showing up and expecting the same benefits that British taxpayers are entitled to via their decades of annual tax payments.

After March 29th 2019, the UK will have entered the 21st-century where people will apply to reside in the UK and their ability to work in the country will be based on their merits rather than on their ability to run across a border.

In the future, immigrants will be perceived to be a welcome addition to the UK instead of being perceived as a potential security threat.

Which will result in a fundamental change in how Britons feel about immigrants in a general sense, and how they feel about their foreign co-workers and neighbours.

Welcome to the 21st-century!