How to squander £630 million on UK defence in one week

[scooterscot]

This last week the government announced the purchase of new tankers for the Navy, from a Korean shipyard.
Cost to Treasury: £450 million, plus spare change.
Cost to UK economy from this loss of investment in production, jobs and much more: £630 million.
That's the gross amount of money lost to the UK from the investment and the tax advantages and economic spin-off from a UK-only investment.

Hey ho the city boyos know what they're doing.

[AtW]

One would have thought Treasury would be able to calculate long term benefit from extra tax take by creating jobs in UK and saving on paying unemployment benefits.

[eek]

This last week the government announced the purchase of new tankers for the Navy, from a Korean shipyard.
Cost to Treasury: £450 million, plus spare change.
Cost to UK economy from this loss of investment in production, jobs and much more: £630 million.
That's the gross amount of money lost to the UK from the investment and the tax advantages and economic spin-off from a UK-only investment.

Hey ho the city boyos know what they're doing.

We don't have anywhere big enough to builder those tankers. Plus the South Korea are building them at a fixed cost well below what the UK based quotes were and that's before the MoD remembered BAE total inability to build anything on time, to budget without finding an excuse to pass cost overrounds back to the MoD for payment.

[VectraMan]

According to who? And is someone's estimate of a loss to the overall economy really comparable with a cost to the treasury?

[scooterscot]

According to who? And is someone's estimate of a loss to the overall economy really comparable with a cost to the treasury?

The source came from a peer in the city. A finance guru no less.

[scooterscot]

We don't have anywhere big enough to builder those tankers. Plus the South Korea are building them at a fixed cost well below what the UK based quotes were and that's before the MoD remembered BAE total inability to build anything on time, to budget without finding an excuse to pass cost overrounds back to the MoD for payment.

I agree with you.

[KimberleyChris]

We don't have anywhere big enough to builder those tankers. Plus the South Korea are building them at a fixed cost well below what the UK based quotes were and that's before the MoD remembered BAE total inability to build anything on time, to budget without finding an excuse to pass cost overrounds back to the MoD for payment.

We used to have plenty of places on the Mersey and the Tyne, but that was until ......

None of them were BAe. These are not warships after all, despite the grey paint.

They are only 650' anyway, that's only mid-sized for a tanker.

The whole world must be laughing.

[AtW]

South Korea are building them at a fixed cost well below what the UK based quotes were

£450 mln spent in Korea would get 0 tax for Treasury and £630 mln spent in UK would probably get 50% of that in tax (not just salary but workers spending money on booze etc) plus saved money from having to pay unemployment benefits.

[xoggoth]

Agree with atw. Why does this stupid reppy thing always insist one must spread some reputation around before giving it to somebody again? There are only about 3 people on CUK with any sense.

[VectraMan]

£450 mln spent in Korea would get 0 tax for Treasury and £630 mln spent in UK would probably get 50% of that in tax (not just salary but workers spending money on booze etc) plus saved money from having to pay unemployment benefits.

It doesn't say that the cost for building this in the UK would be £630 mln. The 50% tax return should have been accounted for in the calculations of whoever the mysterious source of this. So the cost of building it in the UK is £1260 mln.