Master Cutler delivers upbeat message

THE importance of liquidity for manufacturing growth and the serious restrictions bureaucracy has on industry were among the messages delivered at this year’s Cutlers’ Feast.

Among the guests of the Master Cutler James Newman at the historic event – now in its 374th year – were Gavyn Davies, the economist and former BBC chairman and Prof Lord Robert Winston.

They were joined by invited guests from industry, the civil service, the military and City of London livery heads and Masters.

In his keynote address, Mr Newman, who delivered the speech on behalf of Senior Warden Prof Bill Speirs who was unable to attend the feast due to illness, noted the undoubted optimism that now pervaded the region.

He also mentioned the development of a nuclear research centre and Rolls Royce factory at Waverley and the package of support for SFI to buy the world’s largest press putting the region firmly at the centre of the country’s nuclear industry.

Speaking on liquidity the Master Cutler said it was now up to the banks to support businesses in the first instance with the help of government and the various business support agencies and finance providers across the region.

“I said more than enough last year on the responsibility of the banks to support business and some progress does seem to have been made, especially with the state-owned banks, who do seem to be really trying and have put aside specific funds for manufacturing companies,” he added.

Mr Newman said that there was hope within the manufacturing sector that the new government would help the region’s manufacturing sector.

“Overall, the manufacturing sector will be looking to the new government to demonstrate a real change of culture and attitude towards manufacturing, recognising that it is as important as financial services and perhaps listening to this company as much as it listens to the Lord Mayor of London on financial services issues,” he continued.

Meanwhile, Mr Davies considered the economic dangers facing the incoming government in his address concluding that the country does not face an inflationary threat like in 1974.

“Quite the reverse,” he said.

“The collapse of the global financial system during the credit crunch has such severe consequences for the global economy that deflation – falling prices – seems to be a greater threat than inflation, at least in the next couple of years.”

Mr Davies said that because the country was recovering so quickly it wasn’t facing the imminent threat of a double dip recession. 

He continued: “It is true that our official GDP statistics do not substantiate this, showing an annual growth rate running at only about 1%, which is not enough to stop unemployment rising.

“But fortunately our official GDP statistics are barely worth the paper they are printed upon. Business survey data, which tend to be considerably more accurate, suggest that the economy is now growing at the much healthier rate of some 3-4% per annum.”

He concluded: “To some extent, this is being driven by an automatic bounce-back from the depths of recession, with postponed expenditure on items like cars and computers now being undertaken, but there are also signs of a more durable recovery in exports, consumer spending and capital investment.”

The feast is an annual event reflecting the long history of the Cutlers’ Company in Hallamshire as guardians of quality in Sheffield and South Yorkshire.

It offers Members, Friends and Freemen of the Cutlers’ Company and business people from the region the opportunity to promote the skills, products and expertise of the region to the country’s top decision makers.