This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/mar/22/ceramics-firms-fired-up-budget-tax-break

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Ceramics firms get fired up over budget tax break Ceramics firms get fired up over budget tax break
(6 months later)
Cups and plates have been fired in the kilns of the Dale Hall works in Stoke-on-Trent for more than 200 years. From these ovens came the crockery that Captain Scott took on his ill-fated mission to the Antarctic in 1912. And in a sad tribute to local craftsmanship, the tableware survived the extreme cold, while the expedition team perished.Cups and plates have been fired in the kilns of the Dale Hall works in Stoke-on-Trent for more than 200 years. From these ovens came the crockery that Captain Scott took on his ill-fated mission to the Antarctic in 1912. And in a sad tribute to local craftsmanship, the tableware survived the extreme cold, while the expedition team perished.
Today Dale Hall is home to Steelite International, the UK's biggest producer of tableware, producing more than half a million pieces of crockery a week, destined for hotels, restaurants, cruise ships and other parts of the hospitality industry. Decades of decline have left Stoke's pottery industry vastly diminished from its heyday but Steelite and its peers got a boost in this week's budget when George Osborne announced ceramics would be exempt from the climate change levy – an energy tax on industry to subsidise renewable power.Today Dale Hall is home to Steelite International, the UK's biggest producer of tableware, producing more than half a million pieces of crockery a week, destined for hotels, restaurants, cruise ships and other parts of the hospitality industry. Decades of decline have left Stoke's pottery industry vastly diminished from its heyday but Steelite and its peers got a boost in this week's budget when George Osborne announced ceramics would be exempt from the climate change levy – an energy tax on industry to subsidise renewable power.
Steelite sends about 80% of its products to foreign markets, says Kevin Oakes, its chief executive, talking over the clink of crockery and the hum of air conditioners on the factory floor. "I am relieved that the vast majority of our production goes overseas. We are seeing great growth in America, significant growth in new markets such as Russia and Asia. And customers in these overseas markets truly value 'Made in Britain'." Nonetheless "Made in Britain" is a slogan that has been ignored by successive governments over the years, only gaining favour as the credit crunch exposed a ruinous national dependency on financial services.Steelite sends about 80% of its products to foreign markets, says Kevin Oakes, its chief executive, talking over the clink of crockery and the hum of air conditioners on the factory floor. "I am relieved that the vast majority of our production goes overseas. We are seeing great growth in America, significant growth in new markets such as Russia and Asia. And customers in these overseas markets truly value 'Made in Britain'." Nonetheless "Made in Britain" is a slogan that has been ignored by successive governments over the years, only gaining favour as the credit crunch exposed a ruinous national dependency on financial services.
So the chancellor's announcement has been gratefully received by an industry whose longterm slump has become even more pronounced in the latest downturn with the bankruptcy of great names such as Wedgwood, Spode and Royal Worcester. With Steelite's vast kilns running 24 hours a day, seven days a week, at temperatures of 1260C, any fall in energy costs is welcome. "It is not huge in terms of monetary value. What is of great significance is that the chancellor has recognised this industry," says Oakes. "This industry is fighting back … there are many examples of companies prospering in this city. If Britain is going to recover it needs strong manufacturing to do so."So the chancellor's announcement has been gratefully received by an industry whose longterm slump has become even more pronounced in the latest downturn with the bankruptcy of great names such as Wedgwood, Spode and Royal Worcester. With Steelite's vast kilns running 24 hours a day, seven days a week, at temperatures of 1260C, any fall in energy costs is welcome. "It is not huge in terms of monetary value. What is of great significance is that the chancellor has recognised this industry," says Oakes. "This industry is fighting back … there are many examples of companies prospering in this city. If Britain is going to recover it needs strong manufacturing to do so."
Tristram Hunt, Labour MP for Stoke-on-Trent Central, who lobbied hard for the tax break, said the move would help keep "good and well-paid jobs" in the city. And the MP suggests the pottery industry may be, at last, turning a corner. "We have been through the worst of globalisation. And what is so interesting is that you see production regained from China, from Indonesia, because of rising energy costs. The wheel of globalisation is turning again and we are becoming more and more competitive."Tristram Hunt, Labour MP for Stoke-on-Trent Central, who lobbied hard for the tax break, said the move would help keep "good and well-paid jobs" in the city. And the MP suggests the pottery industry may be, at last, turning a corner. "We have been through the worst of globalisation. And what is so interesting is that you see production regained from China, from Indonesia, because of rising energy costs. The wheel of globalisation is turning again and we are becoming more and more competitive."
Karel Williams, professor of political economy at Manchester Business School, says the tax exemption is "a step in the right direction" from a government that he claims has been dazzled by whizz-bang industries such as aerospace and energy. "The romance of the hi-tech industry has completely distracted people," he says. "We have to pay attention not only to so-called 'industries of the future', but to the declining industries … and industries that are holding their own but simply don't figure on the radar." Treasury "finagling of the detail" is only part of the answer, he adds. The government needs "a plan for the future of the pottery business … a plan constructed around the dynamic, successful businesses".Karel Williams, professor of political economy at Manchester Business School, says the tax exemption is "a step in the right direction" from a government that he claims has been dazzled by whizz-bang industries such as aerospace and energy. "The romance of the hi-tech industry has completely distracted people," he says. "We have to pay attention not only to so-called 'industries of the future', but to the declining industries … and industries that are holding their own but simply don't figure on the radar." Treasury "finagling of the detail" is only part of the answer, he adds. The government needs "a plan for the future of the pottery business … a plan constructed around the dynamic, successful businesses".
Such a project would look at the skills and infrastructure businesses need to thrive, he says, citing specialist producers such as Steelite, as well as design-led companies such as Portmeirion Group, whose fashionable tableware is a staple of modern wedding lists.Such a project would look at the skills and infrastructure businesses need to thrive, he says, citing specialist producers such as Steelite, as well as design-led companies such as Portmeirion Group, whose fashionable tableware is a staple of modern wedding lists.
Stoke's potteries will never be the same industry that employed more than 70,000 people in the 1950s, when the city's bottle kilns turned the skies black. It now employs just 7,000 workers. "There are some things that aren't going to come back," says Williams. "If you look at the kind of pottery you buy in Tesco or Sainsbury's … so many dinner plates for £2. That is all going to be made in the far east, or wherever things are cheapest. But there is a substantial market for design where the industry is succeeding and can succeed some more."Stoke's potteries will never be the same industry that employed more than 70,000 people in the 1950s, when the city's bottle kilns turned the skies black. It now employs just 7,000 workers. "There are some things that aren't going to come back," says Williams. "If you look at the kind of pottery you buy in Tesco or Sainsbury's … so many dinner plates for £2. That is all going to be made in the far east, or wherever things are cheapest. But there is a substantial market for design where the industry is succeeding and can succeed some more."
This is exactly the market that entrepreneur Reiko Kaneko is targeting. Kaneko, 30, moved out of London's east end last year to bring her business to the factories of Stoke. Operating out of a converted brick factory, Kaneko designs quirky tableware and delicate vases which are sold in department stores such as Selfridges. Working with five small factories in a two-mile radius from her studio door, Kaneko was attracted to Stoke's rich heritage to produce her Japanese-inspired designs. "The bone china is beautifully white, it has a strength to it, it is chip resistant and translucent when it is held up to the light." She adds: "And it is a lot easier to get on with everything here, with a whole industry built around ceramics. For logistics it just made sense to be up here."This is exactly the market that entrepreneur Reiko Kaneko is targeting. Kaneko, 30, moved out of London's east end last year to bring her business to the factories of Stoke. Operating out of a converted brick factory, Kaneko designs quirky tableware and delicate vases which are sold in department stores such as Selfridges. Working with five small factories in a two-mile radius from her studio door, Kaneko was attracted to Stoke's rich heritage to produce her Japanese-inspired designs. "The bone china is beautifully white, it has a strength to it, it is chip resistant and translucent when it is held up to the light." She adds: "And it is a lot easier to get on with everything here, with a whole industry built around ceramics. For logistics it just made sense to be up here."
Back at Steelite, Oakes is also sounding optimistic about the future of the industry. Steelite, which employs 1,000 people, plans to extend its factory, creating 233 jobs, as it seeks to expand operations following its recent acquisition of Royal Crown Derby.Back at Steelite, Oakes is also sounding optimistic about the future of the industry. Steelite, which employs 1,000 people, plans to extend its factory, creating 233 jobs, as it seeks to expand operations following its recent acquisition of Royal Crown Derby.
Buying this 263-year old company, where a single gold-leaf plate can cost up to £400, is part of Steelite's bid to get into the luxury end of the business. "It is an iconic brand … and we are looking to give it a worldwide stage," says Oakes.Buying this 263-year old company, where a single gold-leaf plate can cost up to £400, is part of Steelite's bid to get into the luxury end of the business. "It is an iconic brand … and we are looking to give it a worldwide stage," says Oakes.
But not everyone thinks the "march of the makers" is advancing as quickly as it could. The government's budget shows an unhealthy preoccupation with housing rather than manufacturing, argues Williams, referring to the statement's central plank to generate £130bn of new mortgages.But not everyone thinks the "march of the makers" is advancing as quickly as it could. The government's budget shows an unhealthy preoccupation with housing rather than manufacturing, argues Williams, referring to the statement's central plank to generate £130bn of new mortgages.
"It is utterly absurd that the chancellor has taken downside risk on overvalued house prices in the UK. Why are we taking all these liabilities to prop up a consumerist society when we could be directing our state-owned banks to lend to our national industries such as the potteries?""It is utterly absurd that the chancellor has taken downside risk on overvalued house prices in the UK. Why are we taking all these liabilities to prop up a consumerist society when we could be directing our state-owned banks to lend to our national industries such as the potteries?"
Potted historyPotted history
Fired in the furnaces of the industrial revolution and by canny businessmen such as Josiah Wedgwood, pottery became one of Britain's first great industries. One of Wedgwood's best customers was Catherine the Great, a dedicated follower of western fashion, who ordered a lavish 952-piece service decorated with scenes of British country life and a frog motif.Fired in the furnaces of the industrial revolution and by canny businessmen such as Josiah Wedgwood, pottery became one of Britain's first great industries. One of Wedgwood's best customers was Catherine the Great, a dedicated follower of western fashion, who ordered a lavish 952-piece service decorated with scenes of British country life and a frog motif.
A few years later queens and empresses poured their tea from fine bone china, first developed by local son Josiah Spode. His company became one of the few global brands of the nineteenth century, with people eating their dinners off its distinctive willow-patterned plates from Calgary to Canton – now better known as Guangzhou.A few years later queens and empresses poured their tea from fine bone china, first developed by local son Josiah Spode. His company became one of the few global brands of the nineteenth century, with people eating their dinners off its distinctive willow-patterned plates from Calgary to Canton – now better known as Guangzhou.
The Potteries soon became equally well known for smoky industrial life, chronicled by novelist Arnold Bennett. Today some in Stoke-on-Trent are keen to keen to dispel the image of the lone potter at a wheel making a fancy teacup. "It is not just pottery," says Laura Cohen, chief executive of the British Ceramic Confederation. As well as tableware, the industry makes everything from bricks and roof tiles, to artificial hips and components for mobile phones and space rockets, she says.The Potteries soon became equally well known for smoky industrial life, chronicled by novelist Arnold Bennett. Today some in Stoke-on-Trent are keen to keen to dispel the image of the lone potter at a wheel making a fancy teacup. "It is not just pottery," says Laura Cohen, chief executive of the British Ceramic Confederation. As well as tableware, the industry makes everything from bricks and roof tiles, to artificial hips and components for mobile phones and space rockets, she says.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.