Green pioneer condemns Labour’s liquidity ‘failure’
Labour has failed to deal with the shortage of liquidity continuing to blight British businesses, according to a green manufacturer.
2K Manufacturing, which produces industrial products from mixed plastic waste, received a disappointing response by state-owned bank RBS after it made a £2 million request to help expand.
RBS demanded a 100% cash guarantee from the company, which chief executive Omer Kutluoglu judged to be “completely unreasonable, as well as entirely pointless”.
He told politics.co.uk he had learned “not to rely on government help or support” as a result.
“By definition, we do things our own way. Having said that, there’s a difference between a curve ball and a bullet in the face,” Mr Kutluoglu said.
“Withdrawing liquidity from the banking system is the equivalent of a bullet in the face.”
2K subsequently succeeded in attracting a £3 million financing facility from a Belgium bank, but its chief executive remains angry with RBS – and the government.
“There is a real fundamental problem that goes right the way through British industry if the banks close their door as they have done,” Mr Kutluoglu added.
“We have experienced it, there are hundreds of stories like this and it’s very serious. It’s an issue that has to be dealt with by whoever’s in government. At the moment we have a Labour government. Have they dealt with it? My conclusion from my own experience is no.”
His liquidity troubles dwarf the debates about national insurance which dominated the first week of the election campaign.
Mr Kutluoglu described the ongoing debate as “just noise” and “local tremors… for politicos to talk about”.
He added: “Withdrawing liquidity from the banking system wholesale is tantamount to cardiac arrest for industry, it’s as simple as that.”
2K currently controls just 15 people, but is set to expand to 72 members of staff by the end of the year.
