Thursday, 26 November 2009

Does buying inward investment make sense?

  • 1991: Dell open plant in Eire - Irish government (& EU) give Dell grant of €55million
  • 2009: Dell close plant in Limerick - now the 2nd largest employer in Eire, 2840 laid off
  • 2009: Dell announces poorest performance figures ever - Reporting a 54 percent drop in net income and a 15 percent decline in revenue
  • 2009: Dell receives EU approval for another €55 grant - For a plant in Lodz, Poland, opened in 2008. The main beneficiary of the closure of the Limerick plant. The Irish government spends €23million in support packages for redundant Dell workers (€14million comes directly from EU)

Correct me if I am wrong but that is just a transfer of jobs from one area within Europe to another, which nets Dell another €55million, whilst costing us €14million mopping up the mess they left in Eire - isn't it?

Is this a price worth paying to prop up a mercenary American corporation in cahoots with a corrupt and toothless European Union money-pit?  It appears to me that often there is only one winner when it comes to free trade within the EU, and it isn't the citizens...

3 comments:

  1. AP had the same thought when the Tosh telly factory shut up shop. The beancounters will be pleased with themselves though.

    Sooner or later everyone must get the message.

    Have nothing to do with the current political economy if possible because it hates you and your family.

    It must be replaced.

    ReplyDelete
  2. You can manufacture as efficiently and as high as quality as you like at a Zillion ppm....but cheap slave labour wins every time

    its the capitalist way...

    ReplyDelete
  3. @incoming - Yup an economy that benefits the elite only. What is the alternative?

    @Mr M - Yeah but Poland only remains cheap for a few years, and then they up-sticks and pick up a grant for their 'generous' inward investment elsewhere. Bastards

    ReplyDelete