Companies arm twisting Westminster on ‘growth fund’?

How many times have we heard big private sector companies threaten to pull out if they don’t get Government goodies. Aviva, after throwing shapes at making itself in Ireland is now in the throws of moving back to the UK (with cost many jobs). But Jim Pickard highlights some digging Sunny Hundal’s been doing over at Liberal Conspiracy on some pretty heavy duty lobbying over Cameron’s new loan scheme. For instance:

CQME, a Chinese technology company, has suggested it could make its British subsidiary, Holroyd Precision, the base for its European headquarters.

But if the Rochdale company did not get a £2.8m grant from the RGF, it wrote, this could damage its expansion in this country.

Read more from Paul Cotterill at Liberal Conspiracy

  • Cynic2

    ,,,and the point is? Why wouldn’t they do it? It is a market and if we want their investment we compete for it

  • PaulT

    “and the point is? Why wouldn’t they do it? It is a market and if we want their investment we compete for it”

    Alternatively

    “And the point is why should they do it? It is a market and if they want access to it they should compete for it”

  • When governments hand out money the company effectively becomes the consumer and therefore has a choice – it is the governments who compete not the company. If the Governments offer incentives to invest then the company duty to its shareholders is to find the best incentive. Any company would and should make this noise. The issue is not the strength of corporates, it is the weakness of Governments and the tendency to offer bribes to attract business rather than the politically more unpalatable (and against EU rules) to offer lower tax and regulatory regimes.

  • Cynic2

    ” if they want access to it they should compete for it”

    ….. except that under WTO rules they can anyway and if they locate elsewhere in the EU who will welcome them with open arms and under the counter subsidies they can sell as much as they want in the UK and we cant stop them