cost. And Skanska calculates it and comes back and says it'll cost around 500 million kronor. Which means that the price per square metre will be X kronor and it would cost 10,000 a month if you wanted to move in. But unlike the McDonald's example, you don't really have a choice - you have to live somewhere. So you have to pay the going rate."
"Henry, dear... please get to the point."
"But that is the point. Why should it cost 10,000 a month to live in those crappy dumps in Hammarbyhamnen? Because the construction companies don't give a damn about keeping prices down. The customer's going to have to pay, come what may. One of the big costs is building materials. The trade in building materials goes through wholesalers who set their own prices. Since there isn't any real competition there, a bathtub retails at 5,000 kronor in Sweden. The same bathtub from the same manufacturer retails at 2,000 kronor in Germany. There is no added cost that can satisfactorily explain the price difference."
There was impatient muttering around the table.
"You can read about a lot of this in a report from the government's Construction Cost Delegation, which was active in the late '90s. Since then not much has happened. No-one is talking to the construction companies about the unreasonable prices. The buyers cheerfully pay what they are told it costs, and in the end the price burden falls on the renters or the taxpayers."
"Henry, the toilets?"
"The little that has changed since the Construction Cost Delegation's report has happened at the local level, and primarily outside Stockholm. There are buyers who got fed up with the high construction prices. One example is Karlskrona Homes, which builds houses less expensively than anyone else by buying the materials themselves. And Svensk Handel has also got into the game. They think that the price of construction materials is absurd, so they've been trying to make it easier for companies to buy less expensive products that are equally good. And that led to a little clash at the Construction Fair in alvsjo last year. Svensk Handel had brought in a man from Thailand who was selling toilets for 500 kronor apiece."
"And what happened?"
"His nearest competitor was a Swedish wholesale outfit called Vitavara Inc., which sells genuine Swedish toilets for 1700 kronor apiece. And shrewd municipal buyers started to scratch their heads and wonder why they were shelling out 1700 kronor when they could get a similar toilet from Thailand for 500."
"Better quality maybe," Karim said.
"No. The exact same."
"Thailand," Malm said. "That sounds like child labour and stuff like that. Which could explain the low price."
"Not so," Cortez said. "Child labour exists mostly in the textile and souvenir industries in Thailand. And the paedophile industry, of course. The United Nations keeps an eye on child labour, and I've checked out this company. They're a reputable manufacturer. It's a big, modern, respectable operation producing appliances and plumbing goods."
"Alright... but we're talking about low-wage countries, and that means that you risk writing an article proposing that Swedish industry should be outbid by Thai industry. Fire the Swedish workers and close the factories here, and import everything from Thailand. You won't win any points with the Trades Union Federation."
A smile spread over Cortez's face. He leaned back and looked ridiculously pleased with himself.
"No again," he said. "Guess where Vitavara Inc. makes its toilets to sell at 1700 kronor apiece?"
Silence fell over the room.
"Vietnam," Cortez said.
"You've got to be kidding," Eriksson said.
"They've been making toilets there for at least ten years. Swedish workers were already out of that race in the '90s."
"Oh, shit."
"But here comes my point. If you imported directly from the factory in Vietnam, the price would be in the order of 390 kronor. Guess how you can explain the price difference between Thailand and Vietnam?"
"Don't tell me that - "
"Oh, yes. Vitavara Inc. subcontracts the work to an outfit called Fong Soo Industries. They're on the U.N. list of companies that use child labour, at least they were in an investigation from 2001. But the majority of the workers are convicts."
Eriksson burst out laughing. "This is great. This is really great. I'm sure you're going to be a journalist when you grow up. How fast can you have the story ready?"
"Two weeks. I have a lot of international trade stuff to check out. And then we need a bad guy for the story, so I'm going to see who owns Vitavara Inc."
"Then we could