A No-Deal Brexit will wreak havoc on companies across the UK as delays and tariffs start to bite, said Caroline Voaden, Liberal Democrat MEP for the South West, after meeting business leaders in Melksham, Wiltshire.
The impending damage is keeping business leaders up at night worrying about the impact on their staff and livelihoods. Any responsible Government would rule out No Deal immediately.
Caroline, along with Lib Dem PPC for Chippenham Helen Belcher, was given a tour of Coombe CastleInternational’s Creamery which exports cheese to Canada tariff-free under the EU-Canada trade deal, set to be ditched under No Deal. The tariff on a £500 block of cheese would rise to a staggering £1,200, and increase from 0% to 300% on the company’s cream products.
Darren Larvin, Managing Director, Coombe Castle International said: “We are extremely concerned about the effects that a No Deal Brexit will have on our business, which will see revenues more than halve overnight, affecting our cheesemakers and farmers around UK who have supported us for nearly 40 years. We will be left with little or no access to some markets and our products rendered uncompetitive when operating under WTO tariffs with no significant trade deals in sight.”
Caroline commented: “It’s not just trade with other European countries that will be harmed by a No deal Brexit. Coombe Castle International is one of many companies that will no longer benefit from access to EU trade deals with countries like Canada and Japan. This isn’t just about the economy – it is about jobs and livelihoods and the wellbeing of everyone involved in these businesses and their supply chains.”
Helen Belcher, Liberal Democrat PPC for Chippenham, added: “Speaking with local businesses confirmed the negative impact Brexit will have on jobs in Chippenham and Melksham. As a result, I will continue campaigning to stop the UK from crashing out of the EU on 31 st October.”
At the same meeting, the heads of C&P Medical, a medical products wholesaler and importer based in Melksham were brutal and unequivocal about the impact of Brexit. They confirmed the Government’s own warnings, leaked in a report at the weekend, that supply chains for medicines and medical products will be vulnerable to severe delays in a No Deal Brexit. “Brexit is going to be carnage,” said Managing Director Peter Shaw. “No amount of jingoism or propaganda will change the reality of what we are going through. This is not scaremongering - it is going to be awful.”
Peter warned, "A no deal Brexit risks losing the supply base we have built up around Europe over 21 years of business. The main risks to our supply of medical products into UK are delays at the port due to customs clearance and extra paperwork, new WTO tariffs and price increases due to a fall in the pound. We supply medical products to pharmacies, hospitals, laboratories and vets and delays to our products like enteral feeds and blood transfusion sets could prove life-threatening. As a small business, we cannot stockpile as the government suggests due to a lack of cash and space. As a business, we cannot invest or move forward whilst this threat of no-deal hangs over us. Brexit is harming businesses large and small and needs to be stopped.”
Caroline concluded: “What we’ve heard today shows the complete fantasy that is Boris Johnson’s idea of post-Brexit Britain. It is simply not possible for companies like Coombe Castle or C&P Medical to operate with these potentially ludicrous tariffs and delays. The uncertainty for businesses like this must end, and in my capacity as elected Member of the European Parliament, I will work with others to prevent the damage this reckless government is intent on causing.”
The chaos surrounding a No Deal Brexit is already harming local businesses that trade with other EU countries and putting jobs and investment at risk, South West Lib Dem MEP Caroline Voaden said on a visit to a factory in Poole on Tuesday.
“What we saw today confirms that what our Government is doing to businesses across the UK is a disgrace, causing them uncertainty, costs and a drain on resources. And to think the Conservative party used to be the ‘party of business.’ Those days are long gone."
Caroline visited Ishida, a Japanese food packaging company that uses its UK locations in Birmingham and Poole to export products to Europe. With her was Vikki Slade, Lib DemParliamentary Candidate for Mid Dorset & North Poole and leader of BCP council.
The firm has been forced to make extensive and costly contingency plans to cope with a No Deal Brexit. This includes opening a European Distribution Centre (EDC) in Best, Netherlands, to enable the import of their products directly from Japan into the EU in the event of Brexit disruption. The company has also increased its stock of spare parts, mainly in the Netherlands, to ensure it can maintain service levels if supply chains are seriously disrupted by Brexit.
She commented during the visit: “Ishida have gone to considerable lengths to prepare for Brexit, but they are no clearer now about whether they will face tariffs on the products they export from to Europe, than three years ago. You can understand why they have set up a new base within the EU, given the Brexit uncertainty and No Deal chaos they are facing.
“It’s clear the uncertainty and disruption around Brexit is causing real problems for businesses across the South West. It is also deterring foreign companies from investing in the UK, with a knock-on effect on job creation. But this is about more than jobs – this is about impacting people’s livelihoods, their security and their families."
Lib Dem Parliamentary Candidate Vikki Slade said: “With a key channel port in Poole, this area could well be negatively affected by Brexit, especially a No Deal Brexit. Whatever the outcome, businesses and public bodies are already having to divert vital funds and give up time to prepare. It is crucial that the government rules out No Deal.”
Guy Dix, Engineering Manager, Ishida Europe commented: “With Brexit approaching, we have measures in place to minimise the impact to our European customers and partners. We have ensured there will be no price increases for customers and have invested in stock holding facilities in the Netherlands to cover potential supply issues. Long term we are continuing with considerable investment in the development of our products and workforce skills to keep us at the leading edge of our industry. Through innovation and technology, Ishida will continue being the brand of choice.”
Caroline concluded: “I’m impressed with the time and effort made by businesses across the South West, like Ishida, to try to ensure their business can weather the impact of a No Deal Brexit. But they shouldn’t have to do this. I want the UK to remain in the EU so our businesses can continue to trade freely with the rest of Europe and benefit from trade deals agreed by the EU. A No Deal Brexit, or indeed any Brexit, is already hurting our communities and we have barely even begun.
“I dread to think what will happen if Boris Johnson’s reckless government pushes ahead with its crazy No Deal plan. No Government in its right mind should be putting people through this madness.”
The government must firm up plans for rural funding post-Brexit so that Cornwall can plan for a major investment shortfall.
I met with officials and local businesses on Friday to discuss their concerns over Brexit, including the loss of substantial EU funding and investment and access to European markets.
Access to the rest of the UK, be it physical or digital, is crucial for Cornwall’s economy to thrive. And being a rural and coastal community, Cornwall is also at the sharp end when it comes to climate change – the cancellation of Boardmasters and recent flood and storm damage are clear examples of how we have to be ready for more disruptive weather events.
On my visit, I heard about fears from local businesses for the Cornish economy, jobs and the environment if Brexit happens on October 31st, including concerns that EU investment would not be fully replaced by the Government’s own Shared Prosperity Fund. These concerns were recently expressed in a Joint Statement to the Government from the leaders of Cornwall and other parts of the UK.
I’m glad to see that Cornwall Council has voted to support a people’s vote on the Brexit deal. While not everyone’s ideal scenario, the Liberal Democrats do believe this is the best way to resolve the Brexit crisis. People were duped. They were fobbed off with hollow promises and the result is a region that will see the tap cut off for funding to vital social programmes, employment programmes and infrastructure – all of which have improved the quality of life for thousands across the peninsula.
I visited Trewithien Dairy in Lostwithiel, which received a £6m grant from the EU’s Rural Development programme in 2010, matched by private sector funding. This allowed the dairy to dramatically increase production – it now boasts an annual turnover of £50 million and employs 200 staff. Voaden also met with representatives of Superfast Broadband, to praise the rollout of the scheme which has received over £50m in EU funds, improving productivity and connectivity for thousands of businesses.
There is no indication that the Government will match these investments. These kinds of opportunities will disappear if Brexit happens, especially in the
event of No Deal. We must stop Brexit before it causes irreversible damage to the future development of our precious counties.
I’m delighted to welcome Sarah Wollaston MP to the Liberal Democrats. She will make a fantastic addition to the South West Liberal Democrats team.
Her decision emphasises that the Lib Dems are now undoubtedly the party of remain in the UK and I look forward to working with Sarah, as MEP and MP, to fight Brexit.
Political affiliations are changing. Old tribal loyalties are shifting as we face a national crisis. Sarah has long been a committed campaigner against Brexit and the damage it will do to all our communities - both here in the South West and across the country.
I welcome this opportunity to work with her to stop Brexit so that we can start dealing with the real issues that face so many people in this country. Sarah has been an excellent local MP for nine years and will continue to serve the Totnes constituency assiduously with the support of the Lib Dems behind her.