Today, FG Wilson, a major manufacturing company in the North East, announced 750 Job losses. They are moving production to China. I wonder why?

Sammy Wilson, the ex economics teacher, appeared on BBC Newsline mostly saying the title of this post. The thought that came to mind was “God help the economy with this clown in charge” Even I could have put a better show on.

The reality is that the North is essentially a low wage cost economy in the eyes of major employers.  It is not viewed as a value added or profit generating base. That is why most new job announcements are about retail or call centre positions. Make no mistake, when a new Retail development is announced, it actually drains the local economy. Low wage and limited prospect positions, closure of local retail businesses, profits exported.  The demographic balance is such that only the middle aged and elderly have discretionary income due to long careers in the Public Sector.

For the young, school leavers and graduates, there are extremely limited options. That is why they leave.

Would the harmonisation of Corporation Tax make a difference?

Possibly, but only if the skills, talent and hunger is there for a potential employer to harness.