I spent yesterday afternoon and evening, and this morning, at the fascinating conference, ‘Financing Innovation and Growth: Reforming a Dysfunctional System’, first at the House of Commons and then at the Italian Cultural Institute in London. The Science Minister, David Willetts, and his Labour Shadow, Chi Onwurah, both spoke at the event. What is most important is that policy makers from all parties, as well as Treasury Ministers, learn some lessons from the FINNOV study.
Tim Page's Archive
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Tim Page
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Tim Page
I returned from a week away on Sunday, meaning the last two days have taken a familiar course. Yesterday, I tackled the inbox, deleted the spam, returned the urgent messages and generally got my electronic life organised. Today I tried to catch up on what has happened in the world while I was outside the news loop.
Particularly interesting (and relevant for me) was the launch of the IPPR’s publication, ‘The Third Wave of Globalisation’.
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Tim Page
This morning, the TUC has launched ‘German Lessons’. This report (which is also available in a shorter summary) is the result of a year-long research project, that took us to major manufacturing companies in Germany and the UK. We spoke to senior managers, works council members and trade union officials in world class organisations such as Volkswagen, Bentley, Siemens, BMW, ThyssenKrupp and Airbus. These firms are either straightforward German companies or are British companies that are owned by German parents. Enormous thanks are due to everyone who gave their time and shared their expertise with us to make this report possible.
These companies are world-leaders. Germany is the strongest economy in Europe, one of the biggest in the world and is best-known for its leadership in engineering and wider manufacturing. There has been much talk about rebalancing the British economy. How much of this is just talk remains to be seen, but if our politicians are serious about a renaissance for manufacturing, there are obvious lessons to learn from German companies.
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Tim Page
Now that the dust has settled, I’ve spent some time this morning looking through the implementation update of the Government’s Plan for Growth, which was published (the update, not the plan) on the same day as the Autumn Statement. This update is in the form of a grid, listing progress on aspects of the Plan for Growth, in areas such as planning, regulation, access to finance, trade and investment, etc.
Box 12 of this grid, under ‘regulation’ reminds readers that the Government announced in April 2011 that it will not extend the right to request time to train to businesses with fewer than 250 employees, “saving businesses an estimated £350 million a year”. I don’t cover either skills or regulation for the TUC, so whilst this is clearly old news to many, it was new to me. I was, of course, appalled (but not surprised) that even requesting training in SMEs is considered unacceptable.
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Tim Page
What a long way we’ve come in 18 months. In those first, heady days of Coalition Government, we were told that deficit reduction was the answer. Growth, it seemed, would take care of itself. Then there was the Growth White Paper that never was. But with economic growth flatlining, George Osborne has been forced to take action. Hearing his list of initiatives reminded me – and plenty of others, it seemed – of what The Guardian has described as ‘Brownite micro-tinkering’. So how will his new growth measures stack up?
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Tim Page
This morning, at the Social Market Foundation, Ed Milband made what the Guardian is calling his most important speech since the Labour Conference. You can read more about it here, but highlights included greater voting rights for long term shareholders in takeovers, a place for workers on company remuneration committees and a better system for encouraging vocational skills. Taking on his critics, who accused him of being anti-business when Labour met in Liverpool, he said a new responsible capitalism was “bang on pro-business”.
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Tim Page
Well done Gloria de Piero, Labour’s Shadow Home Office Minister, for praising Gordon Brown’s leadership during the financial crisis on last night’s Question Time (21 mins in on BBC i-Player). Given that Gordon is about as popular as a toothache, I half expected the audience to boo or laugh, but the fact that this comment was applauded showed the sense of justice among the audience.
Without naming names, Barack Obama does much the same thing in today’s FT. Obama writes:
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Tim Page
I have a piece on the Huffington Post website today, giving a TUC reaction to the BAE job losses from this Tuesday. Lessons must be learned. Lesson one: rapid public spending cuts will undermine any private sector recovery. Lesson two: we can’t hang on much longer without a meaningful strategy for economic growth. Try to have a good weekend.
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Tim Page
I enjoyed Martin Kettle’s reflection on Ed Mililband’s Labour Conference speech in this morning’s Guardian. It covered lots of ground but, if you’ve followed my blogs before, you will guess that I want to pick up on Kettle’s comments about a role for industrial policy.
Martin Kettle puts the case for “well argued and flexible new models of workplace co-determination of the kind that have done so much for German companies”, rather than “an expanded role for unions”. Germany, of course, has both. Its workplace co-determination model has been hugely successful (more about this in the TUC’s forthcoming report on industrial policy in Germany and the UK, which will be published towards the end of this year) but, whilst officially German employee representatives could be anybody, in practice they tend to be union members.
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Tim Page
Harold Wilson said that a week is a long time in politics. It sometimes feels that way in economics too. From Sunday to Tuesday, I was in Paris with TUAC, the Trade Union Advisory Committee to the OECD. Trade union economists from the US, across Europe, Japan, Indonesia, India and many other corners of the globe gathered in collective gloom about the state of the world economy. Even in the last few weeks, it feels as if another world downturn is much more likely than it had been earlier in the summer.