Raspberry Pi chairman signals manufacturing will move abroad

[HEXUS]

In a Twitter statement Dr David Cleevely stated that decision was made "because of Brexit".

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[[GSV]Trig]

Given nobody actually knows what effect Brexit is going to have at the minute, having a plan to move is fine, everyone should plan ahead, but to say hes moving because of Brexit seems a bit premature...

[Boon72]

I love how people with no idea what will happen, post things like this. how does he know what the future holds.
you kind of hope that they leave, it costs them to leave and then when they want to come back its costs them even more :-)

[darcotech]

I think it is too early to "know" what actual taxes and whatever else will be after Brexit.

Probably in the end, there will be not so much different, but you will have your proper independence. That kind a doesn't have a price.

[swinders]

While not great news, at least for the Raspberry Pi production is remaining in the UK as confirmed by the foundations' official Twitter account. The quoted tweet from David Cleevely refers to a different venture.

[3dcandy]

*remembers a-level economics - I got a grade a as well*

Anything that causes uncertainty and lost confidence will have a negative effect on that countries currency

If I could remember the book it was from (Adam Smith comes to mind) then it would be even better

[cheesemp]

I think it is too early to "know" what actual taxes and whatever else will be after Brexit.

Probably in the end, there will be not so much different, but you will have your proper independence. That kind a doesn't have a price.

I just don't understand this. If I had even one iota of confidence in the UK government (which I don't when going to Eton and having a loud mouth is more important than having any skill) I might get it but I don't. The EU isn't perfect but its not bad either. I'd also argue when I'm struggling to make ends meet on a decent dev job thanks to mortgage and child care costs that 'any' cost is something I don't want to pay.

Back onto the matter in hand. Why would you not move a business that manufactures over to Europe? No barriers to export to a large portion of the world (Japan now!) with a regulatory regime that is also accepted in most places vs unknown export barriers, unknown regulatory regimes, unknown delays (and that covers both ways for sub components). The way the current government is pushing there will be barriers. How big or small we won't know but anything is a cost that just isn't worth it for a manufacture when you can just move.

[b0redom]

Given nobody actually knows what effect Brexit is going to have at the minute, having a plan to move is fine, everyone should plan ahead, but to say hes moving because of Brexit seems a bit premature...

OK, how about in layman's terms. You're going to buy a house. You can buy that house at a reasonably competitive rate of interest... say 2%, or you can take a gamble that the interest rate may collapse or hit the moon. Nobody knows. Which would you choose?

Companies are very risk averse, especially when planning for large investments. Given the complete ineptitude of the current government and the fact that we are potentially leaving the EU with no deal in 40 days. If you were planning on setting something up, would you really take the risk of doing it in the UK all other things being equal? I know I wouldn't.

[Corky34]

I think it is too early to "know" what actual taxes and whatever else will be after Brexit.

Probably in the end, there will be not so much different, but you will have your proper independence. That kind a doesn't have a price.

You may not know the driver of the bus you just got on is going to crash or not, but if as you get on he tells you he's considering it you'd probably turn around and leave as it's just not worth the risk.

[Phrontis]

"If I could remember the book it was from (Adam Smith comes to mind) then it would be even better"

That would be the WEALTH OF NATIONS. Bugger to read in its original form, but there are more up to date versions. I suspect Smith would welcome BREXIT, his famous refrain "There is much ruin in a nation" is proved by the EU project. They can if they want move the manufacturing from the UK to somewhere else, but the intellectual property is still here at the moment.
For me BREXIT cannot come soon enough. Not some fannied around with BREXIT but the full fat leave on WTO lines, its what I voted for anyway.There is no hard BREXIT it is BREXIT.

[Saracen999]

*remembers a-level economics - I got a grade a as well*

Anything that causes uncertainty and lost confidence will have a negative effect on that countries currency

If I could remember the book it was from (Adam Smith comes to mind) then it would be even better

True up to a point about currency. But only to a point.

Why?

Because currency pricing depends on market trafing and expectation of futures (and for currency, pretty much immediate futures) and much (possibly all) of that uncertainty is already priced in. Certainly, a number of market traders have already said uncertainty short of a certain no-deal ecit is already priced in.

And even in the event of no-deal, the uncertainty largely dissipates at that point, and we then face a period (the duration of which is arguable) about what future basis EU trade will be on, and what other deals may be made, and when.

it may be that for a trader whose primary market is the EU, those effects will be magnified, but it may also be someone who deals primarily with non-EU customers will actually benefit. Only each company can really predict the magnitude of any change in customs terms, and even then, predicting currency varations is MUCH harder, especially over mdium to long term.

Upshot? Fir some companies, Brexit implications nay justify moving anufsctuting abroad, but a small number of cases do not safely extrapolate to a general situation, let alone a currency prediction.

[Saracen999]

You may not know the driver of the bus you just got on is going to crash or not, but if as you get on he tells you he's considering it you'd probably turn around and leave as it's just not worth the risk.

Maybe, but when the driver has previously predicted, several times, that a crash is imminent and events subsequently showed no crash, you might wonder about his judgement in crash prediction, or even if he has an ulterior motive in making you fear a crash.

[flearider]

old men and premature ...

[Tabbykatze]

It fascinates me when people say we will be better off on WTO or that they welcome it...

[Corky34]

Maybe, but when the driver has previously predicted, several times, that a crash is imminent and events subsequently showed no crash, you might wonder about his judgement in crash prediction, or even if he has an ulterior motive in making you fear a crash.

The thing is the driver isn't and never has made a prediction, that's what other people on the bus may have done but the driver never has, he's saying he's considering crashing the bus, that's not a prediction that's a choice.

Anyone and everyone can make a prediction and it's up to you to decide how accurate their prediction maybe based on the available information, however when someone tells you they're considering doing something that you believe will have a negative effect on you you can either hang around and wait to see if they do what they've said they're going to do and try to deal with the negative consequence when it happens, or you make a judgment on how likely they are to carry out what they've told you their going to do and cut your losses.

[Saracen999]

The thing is the driver isn't and never has made a prediction, that's what other people on the bus may have done but the driver never has, he's saying he's considering crashing the bus, that's not a prediction that's a choice.

Anyone and everyone can make a prediction and it's up to you to decide how accurate their prediction maybe based on the available information, however when someone tells you they're considering doing something that you believe will have a negative effect on you you can either hang around and wait to see if they do what they've said they're going to do and try to deal with the negative consequence when it happens, or you make a judgment on how likely they are to carry out what they've told you their going to do and cut your losses.

Proof, I guess, that analogies only get us so far when it's not even clear what the bus is.