AntarcticPilot
Well-known member
I don't know where things went wrong for our boat-building industry, which was so healthy thirty years ago, but I suspect it was something to do with lack of business acumen and lack of investment in modern construction methods.
VAT on boats went wrong. A vast number of small boatbuilders went bust when the cost to the consumer of their products suddenly went up by 15% (or whatever it was in the beginning) overnight. OK, they should have foreseen the problem and adjusted to it - but most of them were small, craft-oriented outfits, producing a few tens of boats a year. They couldn't make the economies of scale or changes to production methods that would allow them to swallow the additional tax, and in any case were run on relatively small profit margins. If they had done so, we might be slagging off British mass-produced boats rather than German/Swedish/Polish/whatever ones!
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