Lord Bhattacharyya tells Financial Times that we need new Bank to back manufacturing
WMG Director has given an extensive interview to the Financial Times Manufacturing Editor Peter Marsh calling on the Government to create a new Bank to back manufacturing. He said the new institution was needed to establish a 鈥渃hange of culture鈥� towards manufacturing businesses by conventional banks which he accused of being too 鈥渟hort-term鈥� in their approach.
On the effort by five of the big high-street banks to set up the 拢2.5bn Business Growth Fund to provide equity and loans to midsized companies including manufacturers, Professor Lord Bhattacharyya told the Financial Times: that 鈥淭his [the BGF plan] is peanuts compared to what is needed if Britain is to be serious about growth鈥�.
Professor Lord Bhattacharyya said that an industry bank would provide finance to manufacturers at a rate 鈥渟ubstantially above鈥� the level that the BGF is planning. The bank he envisages would have 鈥渟everal billion pounds鈥� at its disposal for channelling into manufacturers, with some cash coming from the government and the rest from the private sector.
Professor Lord Bhattacharyya said: 鈥淲ithout a plan like this to support a radical recapitalisation of manufacturing in the UK, the rebalancing talked about by the government won鈥檛 work.鈥�
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PR111 PJD 2nd August 2011