Saturday, May 21, 2016

Factory illusions. It will be the Mercedes in Poland or not? – Dziennik.pl

Automotive is one of the key Central and Eastern Europe. Slovakia is alive thanks to the automotive and automotive. Plants in Poland employ thousands of people and help in technological development. Similarly, in Hungary, the Czech Republic and Romania. Anyone who goes to foreign companies planning to invest in Poland in the factory with disdain and speaks of “assembly plants invested in the Third World” – is wrong. He is wrong or the one who claims that the factory should be created at any price. You should talk to the business. But as an equal.

– Unfortunately, we still have some complexes completely unjustified. We look at the well-known name and forget understands – says Dorota Wolicka , vice president of the Union of Entrepreneurs and Employers.

When we hear that “Mercedes invest in Poland “or heard that” Jaguar invest in Poland “, the first thing is that big business in exchange for the opportunity to act on our market gives us something. This delusion. The car maker will give something to the country in which it builds. The country must offer something in return. The fact, however, no longer discussed. There is a cult of “new jobs”, “development” and “capital inflows”.

– Negotiations between the state and the investor resemble shopping on Allegro. The government has a certain amount in your wallet, you can spend. Seller is not the state, the investor only – says negotiator with many years of experience, who has participated in several projects, also for the Polish government. The currency is the scale of public support, which will provide the state.

– The Government should always specify a ceiling negotiations. If we accept the value of X, should not be exceeded. You can not enter into contracts at any price – says Janusz Piechocinski , former Deputy Prime Minister and Minister of Economy. Personally responsible for negotiating with Jaguar. I personally gathered thrashing for that factory was established in Slovakia.

An expert with whom we are talking, argues that Piechociński accepted the correct assumption. Another prospect ends that concern the government squeezed like a lemon. – Power, which at all costs wants to acquire an investment, like a gambler, not a seasoned player. The latter is able to say “belt”, where the rate exceeds its features. This first light up the eyes and does not allow himself to an option other than self win. Only when the emotions subside, he begins to see that it made a mistake – we hear. In hindsight, that the balance of profit and loss for Jaguar in Slovakia is not so clear.



Various statements

Over the last few days Poland lived NEWS: Daimler will invest in Poland. This was confirmed by both the company itself and the Ministry of Development. The new engine plant, the company plans to invest about 500 million euros. It is therefore brag about. In the media – both those favoring PiS and skeptical – dominated by the voices of approval for the skills of Deputy Matthew Morawiecki. He strongly about warming. Repeatedly on television and radio stations, the Daimler investment is a success and something for the benefit of all. Company: I chose the best place on earth to build the factory. Country: because at least a few thousand people will find employment, small and medium-sized Polish business will find a large customer, to develop the Lower Silesian Jawor and its surroundings.

– The decision to locate in our country factory car engines of new generation confirms the openness of the Polish foreign investment – the prime minister said Morawiecki. He added: “testifies also about the condition of the Polish economy, which is why we will consistently implement the Plan for Responsible Development, which will create the conditions to encourage investors to further such projects.” In short: success. Particularly important, because showing that, contrary to the words of opposition, the West does not treat the Polish government as a leper. Ba, big companies want to work with just Polish.

We ask for this achievement Deputy Prime Minister Piechociński. This weighs every word.

– We must remember that j eszcze no final decision on the investment of Mercedes in Poland . Rarely ongoing debate in the media is negotiable – notes.

As there is no final decision? PSL politician suggests to carefully read the press releases relating to investment.

“Daimler invests in Lower Silesia” – is the title of official information of the Ministry of Development. The first paragraph of the message: “The concern Daimler will build a factory in Lower Silesia Jawor car engines. The minimum value of the investment exceeds 2 billion zł “.

Below is a picture of Prime Minister Morawiecki, who shakes his hand a representative of the group on the background of the EU flag and white and red. Everything looks fine, Daimler enters Polish.

check press release investor. Title: “Daimler is planning a new engine plant in Poland” . And then we read that “decision about the location and implementation of the project depends on the final commitments on investment conditions, including the granting of state aid” . The Communication Mercedes-Benz Poland it is clear that the matter is not a foregone conclusion. That the negotiations are continuing.

Marta Lau, spokeswoman for the ministry of development , is surprised to our question about the differences in the content of both notices. Refers to information published by the Ministry. When we mention more asekuranckim position of the investor, Lau admits was concluded a framework agreement and specific boundary conditions. What does it mean? That both parties want to communicate, squeezing already give public hands and see that the differences in positions are not significant. In short: to drive a shovel in Jawor little lacking. Final decisions, however, is yet to come.

We go back to the negotiator, who implements us in a practical dimension to discussions between states and investors.

– you know how to say the framework agreement, the investor also notes that the final decision depends on the scale of state aid? A little more – but really a little – than my promise given to you that will build in your backyard oil well – says the expert.

advises to ask the ministry, who came out with the initiative inform the public about the investment. We ask.

– About the informed investor in Stuttgart. So there was no reason why we in Poland have tried to hide this information – said the ministry spokesman Marta Lau.

Our interlocutor negotiator accurately predicted this response. In his opinion before signing the final contract – when the agreement was still an issue of how much money the business will do and what the state tax exemption will concern – for heating the topic in the media depends on only one side: the investor. And this applies not only to the case of Daimler, but all negotiations between the state-business.

The idea is to show how great success was achieved by the government. Then, with this success it is against the wall. Begins to meet increasingly bolder demands entrepreneur, because otherwise one of the ministers one day will have to come out and spotlight to say, however, failed, shared skin of a bear.

From the point of view of playing power by investors particularly interesting seems to be a case of Jaguar. Then the group was playing Piechociński and Slovak politicians. Both countries gearing up for the elections. On the Danube was greater pressure for success. Managers Group perfectly seemed aware of this.

From the media reports, which were placed to a few selected newspapers and television stations, it was clear: Janusz Piechocinski is a tough but effective negotiator , certainly agreement will be signed, resulting in thousands of Polish specialists will work. The Vistula River will emerge luxury cars. Piechociński among other things, to this end, he went even to India, which derives Tata Motors, the owner of the British Jaguar.

Despite the flattering comments for power it was a trap. The agreement – as it turned out after the fact – not for a moment was not really close. Asked about the situation Piechociński answers that must be understood and respected partner. And even after failed negotiations must not show resentment. He does not hide, however, that the heating of the atmosphere surrounding the impending agreement was unjustified.

Finally, Jaguar chose Slovakia, which negotiated in parallel. Heating the atmosphere around the Polish had put pressure on Bratislava. Cause to seek to conclude an agreement at any price. Piechociński when it turned out that the investment will be for our southern border, said he was not looking for an investor at any price.

What does it mean? Well enough that the Slovaks in the construction of Jaguar did not earn in the next several years. Even lose.

– It was a political decision, not economic. Premier Robert Fico before him the parliamentary elections need economic success at any price. But anyway statistical Slovak never know the details of the agreement – explains our expert.

Janusz Piechocinski after the conclusion of the negotiations estimated that Slovakia has offered the investor support level of 1.5 2 billion zł. Let us remember that as much as going to invest in Poland Mercedes.

Slovaks business is unlikely to pay off. As he wrote in our magazine James Loginov, the biggest benefit for the Slovaks was to guarantee its citizens jobs. Many Slovak regions struggling with high unemployment. However, despite this Jaguar still has trouble finding workers. It turned out that the 5.5-million Slovakia lacks appropriately trained personnel. – In recent times there has been an increase in employment in the factories of Volkswagen in Bratislava and Peugeot Citroen in Trnava. Add to that the new factory Land Rover in Nitra and easily come to the conclusion that we have a big problem: we lack qualified people for this project – indicated in the newspaper “Pravda” Andrea Oravcová .

a spokeswoman for the Slovak Ministry of economy Miriam Žiaková admitted and that the market signals a shortage of skilled labor in the automotive industry. The government has already made efforts to change this situation, but the first results are visible only for about 5 years. Until then, Jaguar is planning to import of Polish specialists ….

– Poland’s nothing to compete with other countries: Hungary, Czech Republic, Slovakia. We have great professionals in the country, you can get almost all parts of the car. However, if for a particular company only relevant question is the scale of state aid granted, do not bother to get along. Because as soon as the promised 5 thousand. jobs will be a thousand – explains Janusz Piechocinski.

does not say outright that he meant a situation associated with Jaguar. The facts, however, are such that the company puts the Slovaks ever new conditions. Recently pointed out that the need of additional public funds for drying soils. At the same time sends signals to the Slovaks, he will need less manpower than originally expected.



Masters show

Does this mean that we should close the foreign investors who want to build a car factory with us? Absolutely not.

– We need more for it count, and less count on the fact that we no wyroluje – indicates Dorota Wolicka .

it is a commonplace to say that the assessment of whether the investment makes sense, should always be thoroughly carried out. But there are some clues. First Prime Minister has already given Piechociński: if a basic issue for the company is how much money they will get from the state, and to what extent and for how many years will be exempt from taxes, as soon as possible to escape from the table conversations. In this case, Poland has little chance for it to break through Slovakia, Hungary, the Czech Republic, Romania and Bulgaria. Always one government will be more need for success and will be willing to pay extra for the entire investment in the name of the show, as the government is respected in the world.

The second thing: it is worth to get along with those with whom they already previously we worked. Piechociński gives as examples of our experience with Fiat, GM and Volkswagen. They show that the importance of consistency and continuous cooperation with the investor, even after the completion of the investment. You can even join forces to stimulate the development of vocational education in the region, for the benefit of all.

Mad is also important is who is going to invest in Poland. Safeguarding jobs at the factory itself is in fact a small fraction of the benefits that the state can relate to. More important it is that with the new plant will be a new market for Polish entrepreneurs. From this perspective, the entrance to the Polish Mercedes-Benz will make sense. It will still import the screws. But the investment potential of the Jaguar would be less favorable for us, as concern that the vast majority of parts imported from abroad.

And finally, the most important is a reliable economic calculation. The assessment of whether Poland will earn on investments or her will.

– certainly the primary advantage of such investments is to hire many employees. This means that budget revenue in the personal income tax (on wages), as well as additional money for ZUS (social insurance contributions from salaries) – says Luke Blak , tax adviser at Certus LTA. Here, too, however, must exercise restraint in assessments. The amounts do not have to be large, because the salaries (and consequently the taxes and contributions) in such facilities are generally not high.

– Usually in such situations, it is difficult to expect direct tax revenues CIT and property taxes, because new investors are, in principle, at least temporarily, have released – indicates Blak.

Expert sees the numerous disadvantages of this type of investment. As it points out, often spending from state coffers exceed the expected receipts, which are limited because of the wide range of tax exemptions.

– Furthermore, such subsidies and exemptions often affect also on the market situation – other entities operating in a similar industry can therefore not enter the Polish, close factories here, or simply reduce employment and less profitable, which will reduce budget revenues – argues Blak.

On this last issue also highlights Dorothy Wolicka of ZPP. In her opinion, the extreme dishonesty of the state is that it supports the world’s largest corporations, while forgetting about the small and medium-sized native Polish business.

– How much would not give Mercedes-Benz , and if we did not offer Jaguar , maybe it’s time to change the front and use that money for the development of Polish enterprises? Otherwise, and in 20 years we complained that we work for the British, Germans. Let’s start to work on each other – says Wolicka.

I like that we can not close on the foreign business, but it is appropriate to approach that has already presented several years ago, one simple laborer the Warsaw FSO.

We have half of the 90s, Warsaw Zeran. Koreans in suits dopięli just the details of the acquisition of FSO by the Daewoo Group. Some of them decided to immediately get to work. One of the Asian directors responsible for managing the production visited the hall. To welcome the illustrious guest specially drawn foreman of kanciapy. The whole in the lubricant. The representative of Daewoo decided to convince the Polish workers, that soon will they worked better. Translator for a Korean saying that now the foreman and his men will not have to repair decayed machines, just fill specific printing and the next day will be a special team. The foreman made sure he understood that he would have filled the papers to his equipment repaired. It turned out that he understood properly.

– And I ring … such a change, himself fix – commented.

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