[Kilsally]

http://www.thesun.co.uk/article/0,,31-2003...3251766,00.html

Britain booms with Pound
By GEORGE PASCOE-WATSON
Deputy Political Editor

BRITAIN has become the No1 place for foreign firms to invest since we decided to stay with the Pound, a study revealed last night.

The UK is now the most popular destination for inward investment, while countries using the euro have seen their share of foreign cash nosedive.

Britain has now outstripped France as the European base for manufacturing. And London has more than trebled its position as the number one magnet for investment.

A hard-hitting independent probe by accountants Ernst and Young says: “The UK, and London in particular, still continue to punch well above their weight in inward investment terms in Europe.

“To continue to do so, its efforts must not be sidetracked by the euro debate.”

Lord Derwent, deputy chairman of Hutchison Whampoa (Europe), one of Asia’s biggest inward investors in the UK, said: “Whether or not the UK adopts the euro is not an important factor.

“What is important for us is a stable economy, flexible working practices and the level playing field afforded to foreign companies by British governments.”

Britain’s share of investment into the EU rose from 26.5 per cent in 2001 to 28.4 per cent in 2002, the report found.



Derwent ... 'flexibility is vital'


Manufacturing investment into Britain rose by 15 per cent while it fell in France.

Overall, countries in the euro lost 13 per cent of foreign projects since scrapping their currencies.

The study smashes pro-euro campaign claims that Britain is losing out by keeping the Pound. Industry chiefs say they are drawn to the UK because of our freewheeling economy.

But Ernst and Young warns this would be surrendered if Britain signed up to the euro.

George Eustice of the No campaign said: “Britain will continue to be attractive to investors while it runs a stable economy outside the euro.


“What businesses locating in Britain want more than anything else is a clear decision on the euro. If the tests are not met now, then they will not be met in a year or two.”

Shadow Chancellor Michael Howard added: “This makes a mockery of the claims from the pro-euro lobby that Britain stands to lose out on inward investment if it stays out.”

The Cabinet will make its decision tomorrow to keep the Pound for the time being.

Chancellor Gordon Brown has ruled two out of his five famous economic tests have been missed spectacularly.

He will tell the entire 23-strong Cabinet at Downing Street that a further two were only marginally out.

The final decision will be announced in a landmark Commons statement by the Chancellor next Monday.

But Tony Blair will ensure the door is left open for a referendum on scrapping the Pound later in this Parliament.


The big lie

SOME almighty whoppers have been told about Britain and the euro.


The biggest is that if we don’t join the single currency, foreign businesses will stop investing in Britain.

It’s one of the favourite lies peddled by pro-euro ministers like Peter Hain.

Don’t let him scare you. He’s talking complete and utter tosh.

A report by leading accountants Ernst and Young reveals that the longer Britain stays outside the eurozone, the more of a magnet for foreign money it becomes.

We are the number one destination for foreign investment.

But that success would be jeopardised if we were daft enough to scrap the Pound then sign up for an arthritic European superstate which would love to drag us down to its level.

Our rivals in future will not be France and Germany but the cheap labour former Soviet states.

That’s why Britain needs less red tape, lower taxes and an even more free-wheeling economy.

A long period of silence from Hain would be nice, too.