Are you in or are you out? Untha MD warns of "zombie" Brexit risk
UNTHA UK managing director Marcus Brew has warned leaving the EU could have huge implications for the Boroughbridge-based firm.
The waste recycling and management firm is a wholly-owned subsidiary of Austrian parent company Untha. Importing is central to its business model, as the majority of its industrial shredding machines are brought from the continent.
As a result, exiting the EU could leave the business facing steep costs for its key equipment.
Are you in or are you out? IN
Why?
At the moment, we benefit greatly from free trade. If we leave the EU, we could face levies on our imports, we don’t know what will happen with tarrifs, we don’t know what will happen with VAT.
It would have a major hit on our cashflow, which would affect our investment plans, our plans to grow the business in Yorkshire.
“It’s not just our business – leaving the EU would leave a lot of companies in a zombie state.”
While many argue legislation from Brussels hampers innovation, Mr Brew sees exactly the opposite. “Our industry embraces regulation, it drives investment, it drives innovation, it drives the business forward,” he said.
Looking at the wider economic picture, Mr Brew said he is yet to hear a “substantial” argument as to why the UK would be better to go it alone.
“The economic case just hasn’t been made for leaving the EU,” he says. “Other business owners and leaders I’ve spoken to say the same. “There are some bold statements being made by the people backing Brexit.”
Mr Brew cited Prime Minister David Cameron’s difficult renegotiation of the UK’s EU membership as proof becoming trade-only partners may not be plain sailing. Not all member states might agree to free trade with the UK, he said.
Ultimately, the business arguments for Brexit are “conjecture”, Mr Brew said. “We know exactly where we are at the moment,” he added. “Things may not be perfect, but they’re as good as we can hope.”
