Home » Posts tagged 'Britain'
Tag Archives: Britain
Prime Minister Boris Johnson’s first speech since Brexit occurred on January 31, 2020 where he calls for free and fair trade between the UK and other countries, and indicates that the UK won’t be bound by EU trade rules that penalize the UK or work to penalize Britain’s other trading partners.
He also speaks well of the Canada – EU (CETA) free trade agreement and proposes to use it as a model for the UK and the EU to begin trade talks.
Finally, the Prime Minister suggests that trade with America and the Commonwealth of Nations countries must be ramped-up over the coming months and years.
All in all, an inspiring and well-balanced speech about the UK government’s position on trade with the world.
Transcript courtesy of: GOV.UK
It has been an eventful 2019, hasn’t it?
I can hear you saying, ‘Please don’t go there!’, and I don’t blame you a bit for saying it.
In 2019, the UK lurched from one disaster to another; From weak Brexit politics and its concomitant economic uncertainty, to floods, to troubles within the major political parties and miss-steps with Britain’s allies. It has been a mess.
Consequently, 2020 can only be better. YAY!
Still, UK Prime Minister Boris Johnson united the formerly disunited Conservative and Unionist Party, which is now sitting at 365-seats strong — strong enough to pass almost any bill it wants — including a Brexit bill allowing the UK to leave the European Union on January 31, 2020, and a requirement for the UK and the EU to agree a trade deal by December 31, 2020 (or a so-called ‘No Deal’ Brexit will occur, which isn’t the worst thing in the world as WTO rules would automatically kick-in until a trade deal between the two parties is signed) that will set the rules and regulations (and the tone) for all future trade between the UK and the EU.
So, yeah, it’s important. To both sides. Try not to screw it up!
What We’d Like to See in 2020
Here’s a short list of some of the non-Brexit legislation that LetterToBritain.com would like to see passed in 2020 (legislation that would actually be passed into law in 2020) that would make the UK stronger economically, environmentally, and militarily.
- Legislation requiring one tree planted in the UK per each new vehicle sold in the UK by 2021. For cars and trucks that get over 50-miles per gallon automakers should fund the planting of 1-tree per new vehicle sold — but cars and trucks that get worse mileage than that should be required to plant 2-trees per new vehicle sold. The thinking is this: One giant sequoia tree can remove and store as much as 1400 metric tons of CO2 — which, astonishingly, is equal to the lifetime CO2 footprint of the average American citizen. Check out that claim here. Sequoia trees are the largest trees on planet Earth but even a mature Douglas fir or Oak tree can capture and hold hundreds of tons of CO2 in their trunks, branches and roots.
- Legislation requiring all ships to use clean power while in UK waters by 2021. Ships should be connected to cleaner ‘shore power’ instead of idling their engines while tied-up at port, and legislation requiring all ships over 20-tons displacement to use hydrogen fuel or battery power anytime they’re inside the UK’s 12-mile marine zone, and legislation requiring Royal Navy ships to use biofuels (as is already done in the US Navy) or better, to use natural gas, or even cleaner hydrogen fuel, or sail on 100% battery power like the US Navy’s newest and best destroyer, USS Zumwalt. Shipping represents just over 2% of global CO2 emissions, which could be cut in half by merely substituting biodiesel instead of bunker fuel. (Older ships may not easily transition from bunker or diesel fuel to biodiesel as biofuel tends to degrade low-quality rubber seals and gaskets, therefore, some small amount of subsidy should be offered to shipbuilders and yachtbuilders in the UK to ensure that all new ships are biofuel compatible)
- Legislation requiring 50/50 biofuel blended UK civil aviation fuel and UK military aircraft fuel by 2021. Like shipping, civil aviation contributes just over 2% of global CO2 emissions, which could be cut to 1% of global CO2 emissions via the use of biofuels. Today’s jet aircraft can burn biofuel with only minimal upgrades to rubber seals and gaskets. In fact, Boeing reports that because biofuels burn cleaner, engine maintenance costs fall due to less soot build-up and CO2 emissions can fall by up to 80% on civilian aircraft flights. And for the military, clean burning biofuels leave no smoke contrails behind the aircraft which is an important consideration to military aircraft survivability in combat zones! Sourcing biofuel is a little more challenging, because at the moment almost every drop of biofuel produced in the world is sold in Brazil and South Africa where cars burn a 50/50 biofuel blend and consequently, car emissions are 45% lower when compared to conventional petrol. Biofuel burns much cleaner than the best grades of petroleum-based fuels as… wait for it… there’s absolutely no sulphur in biofuel! And as you may know, cobalt removes most of the sulphur from petroleum-based petrol and diesel fuel and so much of it is used in the petroleum refining process that most of the world’s annual cobalt production is used for this purpose. All battery manufacturing on Earth utilizes only a fraction of total cobalt production, yet this fascinating point remains below the radar of the mainstream media.
- Legislation requiring all low-income senior citizens’ monthly income to be topped-up to £1200. per month via the reverse-income tax method and they should also receive free medical, free dental and free prescription medications (if their private or government pension plan doesn’t already include these three benefits). Any senior trying to survive on less than that amount plus those three benefits will simply cost the healthcare system, food banks, or their families hundreds or even thousands of pounds annually. How the UK treats its low-income seniors is a national disgrace! Seniors built the great UK we see today and they did it without the internet, smartphones, air conditioning, the social safety net (which still needs improvement) and they did it with lower labour standards. And worse than that. Toss in a couple of world wars, the Cold War, a few recessions, an overburdened NHS a scale of change they lived through unlike anything since the Industrial Revolution and it’s safe to say they’ve earned it. So let’s show our respect to UK seniors by helping them to live out their remaining years a little more comfortably.
Here’s a family doing a great thing for the UK: Prince William launches ‘Earthshot Prize’ to help speed climate solutions
Wishing All of You a Safe, Happy and Prosperous New Year!
No matter which side of Brexit you were on, regardless of which political party you favoured in the 2019 election, and regardless of age, gender, race, religion, or anything that could be construed by Britain’s critics as a way to divide us… there is simply much more that unites us than divides us. May that ever be the case.
Wishing all of you an enjoyable New Years’ celebration and a happy and prosperous 2020!
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, sans tariffs, simply by manufacturing those vehicles in 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 zero UK or Commonwealth tariffs for those auto manufacturers, 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.
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 the 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 in the various Commonwealth countries, depending upon where those F-150’s are built and where Ford is shipping them. Very inefficient!
But if Ford 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 automotive tariffs for Ford 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 billion in tax revenue alone for HMG.
- Yes, some of the £200 billion would be spent to build turnkey factories over that decade, but nowhere near all of it.
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 imported into the UK would be subject to a £25,000 tariff.
Because at present, those cars are built in the EU, by EU companies, by EU workers who pay EU income taxes, 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 for those auto manufacturers 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!