The Business, Energy and Industrial Strategy (BEIS)
Committee has today [Monday] published their report
on the reaction of the aerospace, automotive, processed food and
drink, and pharmaceuticals sectors to the Brexit Withdrawal
Agreement and Political Declaration.
The report notes that while these sectors are varied in
structure, all are vital to the UK’s future manufacturing
success. The concerns of these industries, often relying on
complex, just-in-time, international supply chains, reflects many
other sectors that export to the EU.
MP, Chair of the Business,
Energy and Industrial Strategy
Committee said: “Businesses were clear
that the deal on offer is inferior to what they currently enjoy
as part of the single market and customs union, with supply
chains built for maximum efficiency using frictionless trade
across Europe. Businesses need for certainty - and a desire to
avoid a hard Brexit - has however led them to be supportive of
the Withdrawal Agreement. However, they are under few illusions -
they believe that the Withdrawal Agreement will leave them less
competitive than the status quo of EU membership. Looking beyond
the transition period, the Political Declaration is seen as
vague by many in the business community. A list of aspirations
rather than a blue-print for a future relationship. These
industries were particularly disappointed that the Political
Declaration did not include an explicit commitment to pursue
frictionless trade which is so important for doing
business.”
Earlier this year, the Committee published a series of reports
examining the impact of Brexit on five
sectors of the UK economy. Over the last two weeks, the
Committee has held a series of evidence hearings with
representatives from the automotive, pharmaceuticals, food and
drink sector and the aerospace industry.
These hearings provided businesses and trade bodies an
opportunity to: explain what they view the likely consequences
for their sectors to be of the Withdrawal Agreement and Political
Declaration; detail what progress they have made with contingency
planning; and in light of such preparations what they now expect
the impact of a no deal Brexit to be on their sectors. The report
includes a summary of these views.
In addition, as part of this inquiry, the Committee visited
Northern Ireland, where in Belfast they met Bombardier and some
of its suppliers, local businesses and politicians; and in the
border town of Newry they met local businesses and the Police
Service of Northern Ireland.
On civil nuclear and Euratom, MP, Chair of the Business,
Energy and Industrial Strategy Committee wrote to
MP, Minister for
Business and Industry, to call for
clarity on a series of issues relating to the UK’s
ongoing relationship with the EU and Euratom and the
Government’s plans for civil nuclear in the event of a ‘no
deal’ scenario.
ENDS
Editor’s Notes
1. Evidence hearings for the inquiry on the response from
business to the Withdrawal Agreement and Political Declaration:
Tuesday 27 November 2018 – Processed food and
drink
Witnesses: Dan Mobley, Corporate Relations Director, Diageo, Ian
Rayson, Director of Corporate Communications, Nestlé UK, Ian
Wright, Chief Executive, Food and Drink Federation Q64–143
Wednesday 28 November 2018 - Aerospace
Katherine Bennett, Senior Vice-President, Airbus UK, Simon
Henley, President, Royal Aeronautical Society, Paul Everitt,
Chief Executive, ADS Group Q144–211
Wednesday 28 November 2018 -
Pharmaceuticals
Mike Thompson, Chief Executive, Association of the British
Pharmaceutical Industry; Mark Hicken, Chair, American
Pharmaceutical Group, and Managing Director, Janssen UK; Pinder
Sahota, General Manager and
Corporate VP, Novo Nordisk UK Q212–255
Tuesday 4 December 2018 - Automotives
Tony Walker, Deputy Managing Director, Toyota Motor Europe;
Sydney Nash, Senior Policy Manager, SMMT; and Dermot Sterne,
Chief Executive, Applied Component Q256–355
