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Boris Johnson closes India ‘embassy’ despite election pledge
Pippa Crerar, City Hall Editor08.02.10
Boris Johnson's “foreign embassies” in Delhi and Mumbai have been mothballed amid claims the move will cost London millions of pounds of new business, it emerged today.
The Mayor has revealed that the London Development Agency offices in India have not been staffed since last year. He said the operations — which generate inward investment, jobs, students and tourism for the capital — were under review.
India is the second largest foreign investor in London, after the US, with Indian-owned businesses generating more than £14.4 billion a year.
Business chiefs warned that closing the offices to save money would send out the wrong signals to potential investors. Colin Stanbridge, chief executive of the London Chamber of Commerce and Industry, said: “It is essential that we maintain offices in Delhi and Mumbai so that we can continue to market London in one of the fastest growing economies in the world. If we are not out there selling London as the best place in the world to do business, our international rivals will be more than happy to fill the vacuum.”
Graham Capper, of business group London First, added: “If representatives and offices in India are adding value then they should be retained — there's no point saving cash by cutting them if it costs us investment and jobs in London.”
However, he said there should be better co-ordination between agencies promoting London abroad — UK Trade and Invest, the City Corporation, the LDA and Think London, its inward investment agency.
In a written Mayoral answer, Mr Johnson said: “We are currently examining options for the most effective method of promoting London's position overseas, including India, and this may involve the option of having overseas representative offices.
“The position in India currently is that the LDA's representatives in Mumbai and Delhi resigned last year and have not yet been replaced pending the outcome of this review.”
The LDA has maintained all the necessary licenses and registration to allow the recruitment of new offices should it decide to reopen the Indian ones.
Labour Assembly member Murad Qureshi said: “It is disgraceful that the closure of the GLA's offices in India has been carried out by the back door, without Londoners being informed about the decision to mothball them.
“Developing economies like India's have grown in global importance due to their having escaped the worst of the recession. The Mayor's decision to allow the Mumbai and Delhi offices to close is utterly irresponsible.”
Mr Johnson decided last year that the LDA's operations in Mumbai, Delhi, Shanghai, Beijing and Brussels would stay open as they were a good way of promoting London abroad during the economic downturn.
A spokesman for the Mayor said: ""London continues to be actively promoted in India through the capital's inward investment agency, Think London. The two other advisers, who have now moved on, were independently employed by the London Development Agency.
"They will not be replaced until the full review, currently underway, into London's overseas presence is complete. The Mayor recognises that Indian investment is vital to London but is keen to avoid duplication and confusion that may be caused by having representatives from different parts of the GLA group promoting inward investment opportunities in London to Indian investors."
Reader views (12)
If India want any of our business let them come here,or if not what about Tele-Conferencing,for a country that has a Space Programme they must surely have some modern ideas.
- Davey_Bouy, Chertsey, 18/02/2010 14:44
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The real point is, Frank, that London business doesn't want this type of thing. The people quoted are not operators of businesses. They are employees of quangos - often effectively government employees through their funding - which claim to 'represent' business. What business wants is less taxation and less regulation.
- Damian Hockney, London, UK, 09/02/2010 14:55
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well done Boris, finger on the pulse again. India is stealing enough of our jobs already without the need to fund their shenanigans.
- Squiz, Islington, 08/02/2010 21:49
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To Steve S, London. And what may I ask has Ken L and Gordon B turned Britain into?
- Albert Swift, Aberdeen, the Scottish one, 08/02/2010 16:05
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I Hope, if he hasn't done so already, he'll also close the ones in South America.
- Harriet, Thamesmead, UK, 08/02/2010 15:40
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my company is based in London and recently decided to expand operations in the Middle East. It was a waste of time contacting the LDA office in Dubai - the staff there were unhelpful and poorly briefed. The best decision was to close theis gross waste of taxpayers money and improve services here in London.
- Pierre, London N6, 08/02/2010 14:42
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Boris J and Dave C, turning Great Britain into Little Britain. God bless them both.
- Steve S, London, 08/02/2010 14:22
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If London business want it, let London business fund it not the Tax payer. The only beneficiaries in a relation of this sort is business owners.
- Frank, Home Counties, England., 08/02/2010 14:07
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If the London Chamber of Commerce and Industry wants an embassy, surely they can set one up themselves?
- Liz, London, 08/02/2010 13:59
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I seem to remember Boris explicitly stating that he would review these 'embassies' that Ken set up as a vanity project to give him an excuse to fly around the world at our expense.
The UK already has embassies and does not need sub-departments for each major city that wants representation overseas.
The only people upset by this will those civil servants who are jollying it up on foreign junkets.
- Nobby Clark, Perth, the Scottish one, 08/02/2010 13:55
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nd generous salaries which the taxpayer ultimately picks up the tab for.If there is anyone in the Indian sub-continent who is unaware of London and what it offers, I would be very surprised.
Well done Boris, there is enough duplication of roles and offices a
- Sarahn, London, UK, 08/02/2010 13:45
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Times have changed since Boris was elected and saving money and making efficiencies is now the most paramount thing a mayor should be doing rather than meeting election pledges. Until this city is back on track Boris should place a freeze of on all City hall expenditure.
- Keith, London, 08/02/2010 13:20
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