Originally Posted by
FR9999
Shortsightedness is something hard to overcome.
However if you can avoid paying £600 million pounds for repatriation, minimize tax revenue loss and avoid millions of benefit payouts by lending a £150 million pounds, then that makes more sense then just simply stick to capitalistic principles. Don’t forget, private investors and banks had already a billion pounds in place....
FR9999
there is a saying in business ‘the first loss is the best loss’
£600M to repatriate etc versus £150M to bolster. TCX have posted a first half year loss of over £1Bn. So HMG throws in £150M to cover.
what happens next time? Throw in more money? Keep throwing in money, good after bad?
where does HMG stop? Which businesses should it bail out and which shouldn’t they? The banks are a different proposition. An airline/holiday company, although sad for individuals involved, is not an essential fabric of the economy, especially whenJet2 etc are there to mop up, which they will.
TCX is a failed business. It is sad, but it is a fact. Plenty other businesses are managing despite ‘Brexit’ which some people in here are laying the blame at the feet of.
HMG is right not to take a financial interest in. As to what other European countries do, that is there business. Europe is not, despite best intentions, a level playing field