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Government can’t get complacent on trade gap

Manufacturing entrepreneur John Elliott MBE DL says the Government must make closing the UK’s trade deficit its number one economic priority, to avoid the country facing hardships akin to those of Greece.

He believes that if the Government takes decisive action now, through supporting and encouraging the manufacture of more of the goods the UK population consumes, then the trade gap can be eradicated within 18 months.

The warning comes as the latest figures for the UK’s trade with the EU are revealed, showing a continued growth in the trade deficit to £5.3 billion, with exports decreasing by £0.3 billion and imports increasing by £0.2 billion.

Mr Elliott founded the County Durham-based manufacturing company Ebac 40 years ago and the business employs around 200 people, making dehumidifiers and water coolers.

He said: “If a business had the problem the UK faces, it would have to find a solution rather than just keep borrowing. It would look for a practical solution with a high chance of success. A solution that is staring the Government in the face is to use unemployed people to make some of the things we currently import. It wouldn’t cost any more to employ them than to pay them benefits.

“We used to make these things 20 years ago but we thought we could stop making things and make money from financial services etc. Instead of hoping for ‘pie in the sky’ innovations let’s pick some sure sellers and invest in the equipment to make them now. Let’s use the money that we pay in benefits to employ people in things we know we can do, making things we know we can sell. Let’s use the money we plan to spend on infrastructure on building and equipping factories. Once this is done and we are solvent again then build the infrastructure.”

He continued: “International trade is a good thing but only if it is balanced. It can not be right for us in the western world to consume more than we produce while poor people in emerging countries make up this shortfall. We need to stimulate supply in the western world rather than stimulating demand in the emerging world, so the people there can enjoy the fruits of their labour.”

In 2004, John led the successful campaign against a Regional Assembly in the North East and he was a regional chairman of Business for Sterling the pro-pound business organisation.

John is also campaigning for greater focus the trade deficit which he believes is under-acknowledged as an indicator of the health of the economy, and the ability of manufacturing to make a positive contribution to the necessary rebalancing.

A website for people to find out more about this campaign is online at [www.stopgapuk.com](http://www.stopgapuk.com/? target=) and other manufacturers are being urged to add their voice to the debate.

This was posted in Bdaily's Members' News section by John Elliott .