British PM David Cameron talks tough as deals fail to take off

Discussion in 'Foreign Relations' started by SHASH2K2, Mar 7, 2011.

  1. SHASH2K2

    SHASH2K2 New Member

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    With British companies Vodafone and Cairn facing regulatory hurdles, UK Prime Minister David Cameron has expressed concern over unpredictable decisions and “transparency in the business environment” in the country.

    “Some UK companies still face difficulties, in particular linked to the predictability and transparency of the business environment in India,” Cameron wrote to Prime Minister Manmohan Singh in a February 9 letter, a copy of which is with the Hindustan Times.

    HT on February 18 wrote about this diplomatic intervention aimed at ensuring British business interests were protected in the big economy poised to be the world’s fastest growing. Saying Britain wanted to encourage a growing appetite among its companies to invest in India, Cameron said the difficulties UK firms were facing “risk jeopardising our joint goal of a much stronger trade relationship”, valued at $10.6 bn (R47,700 crore).

    "This is not to comment on the merits of individual Indian policies, which are, of course, a matter for you," he wrote. "But I want to highlight my concern that some UK companies are facing difficulties which are hard to explain and that this is, in turn, affecting the wider business climate."

    Cameron cited three cases in his letter including a tax demand of $2.6bn or R11,700 crore in the case of Vodafone, which he said "remains, pending a satisfactory outcome to the judicial process, subject to a substantial demand for capital gains tax on a basis which has no precedent".

    He also highlighted delays in the government's approval for Cairn Energy's $9.6bn (R43,200 crore) deal involving the sale of its Indian subsidiary to the London-listed Vedanta Resources. "Cairn Energy faces unexpected regulatory hurdles which are causing delay and could block the deal entirely, which is very time-sensitive, thus preventing Cairn investors from legitimately exiting the market."

    Cameron also touched upon unpaid bills (of more than £20m or R150 crore) due to British companies which worked during last year's CWG in Delhi.

    "Some companies which did work for the Games have found it difficult to get payment.” This, he said, had “in one or two cases involved delays which have had serious consequences for the financial viability of the companies concerned.”
     
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    Indians face difficulties with British Immigration Laws.

    Does it mean we have to squeal, rave and rant as good old David is doing?
     
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  4. SHASH2K2

    SHASH2K2 New Member

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    Sir when fine on Vodafone cane be in tune of billions for acquiring Hutch even a sane person will rant . After all he is a Britisher who think they still rule the world.
     
  5. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Vodafone has done a big mistake by not looking in to tax aspect, once the couts have ordered them to foot the bill they are resorting to political pressure. Hope our policy makers don't resort to giving them a bail out.
     
  6. Ray

    Ray The Chairman Defence Professionals Moderator

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    That apart, now notice the British bias against Indian owned industry

    Note the bias not only of the British Govt, but also the British MP.

    Note the manner in which BBC is with a sleight of hand trying to suggest that Tata is a great global industrial giant with a bottomless cash reserve!! And the poor US companies are struggling novices (and hence deserves money!!).

    David's outburst over Vodafone (which is guilty of tax defraud) sounds more like a squealing sow being slaughter for a barbecue!!
     
    Last edited: Mar 7, 2011
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  7. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Good point raised ray sir, these mofos thinks that it is there birthright to loot the others. This is one of biggest cases so it is publicized so much. there are a lot of mistakes happens like this (I have personally seen some, but the values where not more then 1 million USD) and other side always behaves that why it is complicated to do business. and the answer from our side is why the heck you didn't called us from the beginning :)
     
  8. Oracle

    Oracle New Member

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    I think this is the appropriate thread for posting this piece of news.

     
  9. Son of Govinda

    Son of Govinda Regular Member

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    Too bad David Cameron... we don't owe Britain a single thing, and if anything we should be boycotting British business and industry for everything British companies have done to India. Your corrupt banks just destroyed an entire nation(greece), just for profit.

    It's a pretty fair free-trade system and if British companies can't survive in it than boo-freaking-hoo. They already have every advantage over Indian competitors.
     
  10. sky

    sky Regular Member

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    Vodafone and it's buy out team went out of it's way to avoid paying tax on its indian telecom purchase knowing its the buyer that pay's not the seller. Even if this sound's a little strange ,that's the law in India and they should respect that rather then avoiding there responsibility.

    India is also to blame buy not saying at the time the deal took place capital gain's must be paid or the transaction can not take place. Here in the UK if you don't pay stamp duty the purchase of a house can not take place. I assume it's similar for companies as well...
     
  11. Ray

    Ray The Chairman Defence Professionals Moderator

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    Investing is OK and always welcomed.

    But to treat India as a Banana Republic where the companies will rule the Govt for their own gains, is, if you ask me, a bit thick!

    It is also the fault of the Indian Govt for being coy and some amongst them wanting to make a personal quick buck and those who should have monitored it, look the other side and acting smug!
     
  12. panduranghari

    panduranghari Senior Member Senior Member

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    Brits are self serving, bigoted, xenophobic people with puerile mindsets. I make this decision by working with and among them after 10 years.No wonder the French, Germans hate them.
     
  13. arya

    arya Senior Member Senior Member

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    well uk is facing hard time they need India
     

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