A North East business leader has given his starkest warning yet that a no-deal Brexit would threaten the future of some of the region’s largest employers.
Giving evidence at a House of Lords inquiry into trade between the 海角视频 and Japan, North East England Chamber of Commerce chief executive James Ramsbotham was asked how the region would fare in the event of a no-deal Brexit and a move to WTO rules.
A number of groups - including the Chamber - have warned that a no-deal Brexit would hit the region’s automotive sector, with Mr Ramsbotham saying earlier this summer that leaving the EU without a deal would be a “massive threat to our business community”.
His words echo growing warnings from companies such as Nissan, where a series of executives have used visits to its Sunderland plant to urge the Government and the EU to make a deal.
Speaking to the House of Lords inquiry about a potential no-deal, Mr Ramsbotham said: “We in the North East feel very, very pessimistic about that potential outcome.
“Here we sit with seven ports all facing east across the North Sea. All Government assessments have said that it would be the North East that would experience the biggest threats to GDP from a no-deal outcome. We’ve got to have a deal at some point; it’s just when.
“Certainty Nissan’s chief executive and COO (chief operations officer) have made it very clear that they would be looking at closing down operations. There’s 30,000 people in the North East directly employed in the automotive sector and probably that many again indirectly.
“Hitachi, who moved here to put in place investment to export trains to the EU, have so far completely failed to win a deal to any country because by the time they started operations the Brexit referendum had taken place, so they must be under threat too.”
Most Read
Mr Ramsbotham was backed by Mike Hawes, chief executive of the Society of Motor Manufactureres and Traders, the main umbrella group for the automotive sector.
He said: “I like to think I’m an optimist, but I’m being severely challenged - the application of WTO tariffs to our sector would threaten the viability of many car companies.”
Leaders on both sides of the Channel have warned that a Brexit agreement is needed by October if a deal is to be ratified in time for the start of 2021.
But hopes of a deal being reached are fading after a series of unproductive meetings and a row over the 海角视频’s decision to move legislation that breaches last year’s withdrawal agreement.
Separately, a new study has flagged up concerns of no-deal Brexit after it showed North East manufacturers had slashed investment in response to the continued impact from the coronavirus pandemic.
The Make 海角视频/BDO Manufacturing Outlook Q3 survey warned that the uncertainty surrounding the negotiations with the EU could cause further damage to investment prospects in the latter part of the year.
June Smith, Northern region director for Make 海角视频 in the North, said: “Manufacturing has begun to climb away from the abyss that it stared into earlier in the year. But, make no mistake it is going to be a long haul back towards normal trading conditions, with talk of a V-shaped recovery nothing more than fanciful.
“Having emerged from three years of political uncertainty at the end of last year, increasing talk of a final ‘no deal’ exit from the EU would be a final nail in the coffin for many companies. If we are to avoid this and, the avalanche of job losses that would follow in already hard hit areas and sectors, it is essential that the first step towards a fuller recovery is provided by a comprehensive trade agreement with the EU.”