Orange Cola wrote: Mon Jul 09, 2018 7:30 pm
GG. wrote: Mon Jul 09, 2018 6:31 pm
Orange Cola wrote: Mon Jul 09, 2018 6:08 pm
Ok, so I'm going to take a hit of a couple of grand a year in income growth to save 5% tax on the other halfs monthly necessity at a couple of quid a pop.
Got another one?
The problem is this is the stupid level the debate gets dragged down to. OC's hypothetical projection of a "couple of grand" loss in income growth measured against a reduction in the price of tampons, which he's arbitrarily taken as the only benefit.
Hypothetical projection? Are you fucking mad? We've had a couple of years of stunted growth already with investors and suppliers either pulling or putting prices up,
building in "Brexit clauses" to contracts on commodities which can't be bought elsewhere for the same money or less. I could quantify the cost today for where I work if it wasn't sensitive information so I'll give you the end result which is the pound in my pocket calculation. I'm 2.5% down on pay ALREADY and we haven't even fucking left the EU yet!
Christ almighty. Stop saying this is yet to come, it's already fucking here!
I know you'll pick up on that so let me give you specifics. There are three companies in the whole world who produce a vital commodity, without it we can't sell the product. Could we do the commodity in house? Yes but that would cost at least £500,000,000 to do, realistically probably closer to a billion but putting that forward would just be naysaying would it? The three companies who already make this commodity are all based in Europe BUT they have manufacturing sites globally. Currently the commodity is produced in the European plants because it's the only way we can import the commodity tariff free and we can nip over with a couple of forty footers twice a week and bring it back.
Can't do that any more when we exit.
Either we import from another country or we import from the EU still but we have too add on a tariff to the commodity whatever that cost is. Also, we don't have the convenience of nipping around in a couple of trucks without getting stopped, instead we will have to hire or buy a warehouse to contain the commodity to ensure the rate of supply is upheld. We do that currently but only for a day or so's worth of stock 'cos you know, space costs money. If we have import duty to pay we need a larger warehouse to keep the stock, which costs more money, so we can meet the same guarantee of rate and flow. We also need enough stock in there to bridge the admin time taken to process the import duty on each item and last time I checked the admin work doesn't do itself so now we have to employ people we never needed before to do some admin that we never had before.
Times that by each commodity on the finished product which is produced in Europe - some 60% of it - and add that cost onto the end product because it outstrips your profit margin and suddenly you're pricing yourself out of the competition.
So without frictionless tariff free trade with countries that can produce the required commodities we're literally screwed. You can't tell me we're going to have that in place by March 2019 or any time soon after that.