21st Century Infrastructure

I have tried to resist the income side and to focus on potential savings. Having just read an article in the paper on Horncastle Lincolnshire I'd like to give my comments on the issue of infrastructure. 

Firstly we rely very heavily on our low corporate tax environment to attract small to small medium size business. Increasingly though I suspect that is becoming a secondary issue for businesses as the technological environment in which they operate shifts.

21st century businesses in virtually every field of endeavour eely on access to very high speed broadband. Employees are increasingly attracted to live in environments where they can also access very fast broadband speed. This is moving rapidly from a 'nice to have' to a 'must have'.

In Germany I have unlimited data, 100mbs download speed broadband for the equivalent of £15 per month. My mobile provider gives me unlimited 4G hi-speed download for £12 per month. Looking at places such as Singapore, South Korea and Japan you can access 1000 mbs download now for about £30 per month.

By comparison we are fighting for a competitive position with an increasingly dated and slow broadband provision. If we want to grow our population by about 3,000 per annum of productive families we need modern, well paid jobs. 

Low tax does not create profitable and sustainable business turnover. It assists profitable businesses once they have achieved that.

Should money in the Development Fund be targeted at creating the competitive super high speed technology infrastructure to differentiate the Island in the global market place and to kick start economic growth. 

 

Why the contribution is important

Without approporiate, competitive, communications technology the Island will slowly (increasingly rapidly) fall behind and into severe economic decline. If we can streamline the public sector and save money that is fundamentally being used ineffectively, then serious consideration should be given to reinvesting the savings in making and sustaining (vitaly important) the IOM as a modern base for wealth creating activity.

I shudder to see that our MEA debt is about £530,000,000 for an expensive electricity supply but we have low speed broadband with which to attract wealth creation!  

by dpfellows on April 15, 2017 at 11:36AM

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Comments

  • Posted by ManxVoter April 15, 2017 at 14:57

    Yes - the Quayle administration pays lipservice to fast broadband etc as part of it's political move to increase the islands working population without any sort of political mandate whatsoever

    Administrations genuinely interested in becoming hitech centres of business excellence have internet speeds of 1TB already

  • Posted by dpfellows April 15, 2017 at 21:27

    picking up on what you are saying MV "Catching up with the Joneses" is not a great competitive strategy particularly when "catching up" is not anywhere near "catching up".

    There is a real danger in getting stuck in 1990s thinking that competitive advantage is about low corporate and personal tax - are these the fundamental issue for modern business? Probably a small economy like ours needs them to offset some of its disadvantages but without state of the art competitive communications technology even 0% tax rates are unlikely to grow the economy at the rate politicians are talking about.

     
  • Posted by ManxVoter April 16, 2017 at 12:07

    Very true
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