Member Article

Cameron accused of "rank hypocrisy" over Davos reshoring speech

The Prime Minister has been accused of “rank hypocrisy” over his calls for more businesses to reshore manufacturing activity in the UK.

The Public and Commercial Services Union (PCS) has criticised the PM’s speech to World Economic Forum attendees in Davos that said there was an opportunity for business to bring production back to Britain.

PCS say a recent government contract for back office work was handed to IT firm Steria, who it says plan to outsource a portion of the work overseas.

Steria say no decision on offshoring roles has taken place, but offshoring has previously been successful for a number of its clients.

The union’s general secretary, Mark Serwotka, said: “It is rank hypocrisy for the prime minister to claim he wants jobs brought back to the UK when his government is allowing a private firm to send civil service work overseas.”

In his speech David Cameron said: “From food processing to fashion. From cars to computer makers it’s all sectors making this happen.”

The PM cited manoeuvres by food company Symingtons, model producers Hornby and technology firm Rasberry Pi to bring manufacturing back to the UK.

TUC general secretary, Frances O’Grady, said fears of an EU exit would hamper efforts to reshore British firms’ manufacturing.

She said: “Any move that genuinely attracts jobs and investment to the UK is welcome. The success of the UK car industry shows that we are a world class manufacturer.

“But no new government office can undo the damage done by the fear that Britain will leave the EU and end its membership of the world’s biggest single market.

“And what really attracts inwards investment is world class infrastructure, a skilled workforce and investment in science, not press conferences in Switzerland or inventing a new word.”

CBI director John Cridland echoed this sentiment and said: “The benefits of EU membership to the British economy far outweigh the costs but if it were to become more outward-looking, strengthen the Single Market and take a fresh approach to regulation to ensure it supports, rather than obstructs firms, it could create real opportunities for bringing more jobs back.

“As our European umbrella organisation BUSINESSEUROPE argues, increasing industrial competitiveness should be a key priority for EU reform, which would encourage more companies to re-shore.”

This was posted in Bdaily's Members' News section by Tom Keighley .