Manufacturers will be severely impacted by Brexit warns support group
A LEADING UK manufacturing organisation has stated publicly that the industry faces severe problems should June’s referendum lead to an exit from the EU.
In its submission to the Department of Business, Innovation and Skills Committee’s ‘Business Views on EU Referendum’ inquiry, the EEF said manufacturers would be exposed to many risks.
The organisation, which is making a case as to why the UK should vote to remain, said it was also worried about the risks posed to business by a ‘vitriolic and bitter’ referendum campaign and that the way the campaign is conducted could be damaging for UK PLC, irrespective of the outcome of the vote.
In its submission, the EEF says that manufacturers see a number of risks potentially arising from the EU referendum campaign. These include the impact on investment, with overseas investors becoming more cautious about putting money in the UK, potential harm to the UK’s reputation and international standing and damage to the UK’s long-term relations with the rest of the EU.
Concerns also extend to the quality of the debate and whether voters will be presented with good quality, factual information and a balance of views.
Should the referendum result in a split from the EU, the EEF said it was concerned there was no clear pathway or information for manufacturers about what being outside of the EU looks like. This will lead to further uncertainty and increase risk, it adds.
Terry Scuoler, CEO of EEF, said: “The risk from financial market volatility, the risk from having no clear line of sight on what leaving the EU would entail and the risk the campaign poses to the UK’s reputation on the world stage, are all weighing on manufacturers’ minds.
“Industry will need to manage these risks, but there is a lot at stake in the outcome and in how we get there. As we saw with the Scottish referendum, in many respects the journey is as important as the destination. It is important that the public is encouraged to engage and is able to hear all factual perspectives – a vitriolic and bitter campaign is not in their, or UK PLC’s, interests.
“As for the outcome, our members are clear that the UK’s interests are best served by remaining in the EU. They are fully aware of the EU’s benefits and shortcomings, but strongly believe that the right way forward is to reform and improve the EU rather than simply walk away.”
EEF surveys have shown 61% of its member companies want the UK to remain in the EU, while just 5% support a ‘Brexit’. Half say that remaining in the EU is important, while 20% say it is business critical.
More than 80% of the membership say it makes no sense for the UK to cut itself off from its major market.
