http://blogs.birminghampost.net/business/

Another one to add to the list

By Anna Blackaby on Feb 23, 09 11:10 AM in Automotive

I have a new hobby. It's not one that is going to get me out of the house much, it probably won't help me make new friends and it's certainly not very relaxing. But it is strangely compelling.
My new pastime is tracking down initiatives used by overseas governments to stimulate a hi-tech low-carbon economy, which Gordon Brown has trumpeted as our saviour from the current grinding fiscal gloom.
Once identified, I then start my mental stopwatch to measure the time that elapses before our government finally catches up and takes similar steps.
And if I were blessed with a mathematical brain I would work out a complex algorithm to show how far behind the low-carbon curve the UK will be when we eventually emerge from recession.
Last week another of these measures was brought to my attention.
In an interview with Modec, the Coventry-based makers of electric commercial vehicles, the company's chairman Lord Borwick spoke of Modec's bulging order book - virtually all of which is destined for export or for overseas firms present in the UK.
Why, when we have such a great example of Midland innovation and engineering right here on our doorstep, is all of it going abroad?
Of course exporting our knowhow is a great thing and should be applauded in its own right and granted, the scale of Modec's production is tiny compared to other big-name vehicle makers in the region.
But it would surely be best if Modec could sell to both the UK and overseas markets and as well as helping our balance of trade, Modec's products could push us some way towards meeting the UK's ambitious target of reducing greenhouse gas emissions by 80 per cent on 1990 levels by 2050.
The reason most of Modec's production goes abroad is that other countries have introduced tax breaks for companies investing in electric vehicles.
For example in Ireland businesses which purchase electric vehicles are able to write off 100 per cent of the cost against tax. France, Germany and the US all have similar schemes. Even in Republican Texas, the spiritual home of fossil fuel, a $5,000 subsidy is being considered for people investing in electric hybrid cars.
As Lord Borwick put it: "If you look at America there is an urgency about doing something that was never there before.
"But in Britain we always had the idea about green things but others are surpassing us by actually doing something."
Last week on this blog, I compared the government's slowness to act on vehicle scrappage schemes to its decade-long reluctance to introduce another demand-stimulating green measure - feed-in tariffs.
I am now officially adding tax breaks for electric commercial vehicles to that list of things that let the grass grow under our feet while engineering jobs are slowly disappearing into the ether.
Ssshh - can you hear that stopwatch? Tick tick tick.

0 TrackBacks

Listed below are links to blogs that reference this entry: Another one to add to the list.

TrackBack URL for this entry: http://blogs.birminghampost.net/cgi-bin/mt421/mt-tb.cgi/111494

Leave a comment


Type the characters you see in the picture above.

This is to help prevent spamming and confirm you are a human

 

Business authors

The Big Debate

The Big Debate - Can West Midlands creative industries revolutionise the UK Economy?
My postings | The Big Debate's RSS feed My feed

Howard Wheeldon

Howard Wheeldon - Birmingham-born City analyst Howard Wheeldon, senior strategist at BGC Partners.
My postings | Howard Wheeldon's RSS feed My feed

Carol Barrie

Carol Barrie - Carol Barrie, Tax Consultant, RSM Tenon and Head of Property & Construction in Birmingham
My postings | Carol Barrie's RSS feed My feed

David Bailey

David Bailey - Prof David Bailey, Coventry University Business School
My postings | David Bailey's RSS feed My feed

Stuart Pemble

Stuart Pemble - Construction Lawyer, Mills & Reeve
My postings | Stuart Pemble's RSS feed My feed

John Clancy

John Clancy - Director, mediafuturesalert.com and justliteracy.com
My postings | John Clancy's RSS feed My feed

John Samuels

John Samuels - Professor of Business Finance, Birmingham Business School
My postings | John Samuels's RSS feed My feed

Chris Tomlinson

Chris Tomlinson - Chris Tomlinson is the founder of social media and online PR agency Friend (frienddigital.com)
My postings | Chris Tomlinson's RSS feed My feed

Andrew Whitehead

Andrew Whitehead - Senior partner at law firm Martineau, leading the firm’s Energy & Climate Change practice.
My postings | Andrew Whitehead's RSS feed My feed

Victor S

Victor S - Academic researcher in CSR & construction, University of Wolverhampton
My postings | Victor S' RSS feed My feed

Latest Birmingham Post Lifestyle blog

Lifestyle Blog

Birmingham Post staff and guest bloggers from the midlands give you the lowdown on what's happening in your region and some musings on culture in the UK and beyond.

Keep up to date

Sponsored Links