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Britain’s decision not to join euro was a ‘blessing’
Japanese businessman says low pound will help inward investors recover from recession
Britain's decision not to join the Euro has proved a "blessing" according to a leading Japanese businessman who employs hundreds of staff at a UK plant.
Masahiro Sakane, chairman of Komatsu, the world's second-biggest manufacturer of heavy construction equipment, which operates a plant in Gateshead making machines for the European market, said the fall in the value of the pound against the euro was benefiting British exporters.
The 25 per cent fall in the value of the pound relative to the single currency over the last two years may have hit holidaymakers in the pocket, but it has helped UK manufacturers boost their margins and makes British products cheaper on the continent.
"Today, I am glad that the UK chose not to join the euro," Sakane told the FT. "If you look at the past five years it has been a blessing. And although the market in the UK is shrinking, the machines we produce in the UK are shipped and exported to Europe. The weaker sterling is, the more that will help, particularly within Europe."
Komatsu, which is second only to Caterpillar in its sector, has been hit by the slump in construction since the crash of 2008, and it now employs 300 rather than 750 staff in the UK. But Sakane said that a weak pound would help the company when the market recovers.
His comments come after a torrid few weeks for the euro, which has been badly affected by Greece's debt problems. There have even been murmurings of discontent in Germany about the country's decision to abandon the Deutsche Mark in favour of the euro.
However, despite the euro's recent travails, other overseas investors in the UK say they would still like to see the UK join up to provide stability. Bernd Atenstaedt, chief executive of German Industry UK, which represents German businesses in Britain, told the FT that currency fluctuations meant "sometimes we win and sometimes we lose".
"Virtually all our members would like the UK to join the single currency," he added.
The same paper reports that a far bigger Japanese employer was less enthusiastic about Britain's stance. Honda, which employs more than 3,000 people in the UK, said it still holds the view that by remaining outside the euro Britain is putting future investment at risk. ·
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Britain is almost a banana republic now so sterling is not a "Big Issue" anymore,we only have the unemployed and immigrants to export .NuLabour has degraded and seen off England at last,much to the delight of the EU.Broon has a lot to answer for in the next and possibly last General Election that counts.
The weaker pound helps exporters export. Yes it does, but, it hinders importers importing (because they have to sell on to us, the dear old consumer). Overall these fluctuations of currencies are mere nuisances which business must adjust to. What matters is the productivity of the private sector. If we invent a method of producing energy, steel, computer software, spinning cotton, wool production, financial services, management services, growing wheat...you get the picture...we are making a bigger profit on our efforts (aka, 'adding more value'), and contra Karl Marx and his evil clone army, this is good, not bad. The more effective and efficient we are, the more people want our stuff because it is cheaper, better, or cheaper and better. And that is the way to improve the world, not by taxing the entrepreneurs and investors and giving the tax thievery handouts to the whoever. That is called the politics of envy, and killing the goose that lays the golden egg, and many others things too rude to write.