West of England firms face uncertainty and risks in areas such as skills and supply chains but also opportunities from Brexit, a meeting attended by bosses of around 100 businesses this morning heard.
There was consensus that the region’s business community needed to lobby government over the impact of Brexit while also adapting and maximising the opportunities it would create.
The gathering, organised by JBP Parliamentary Affairs and Business West with support from regional law firm Foot Anstey and Bristol Airport, was held at the airport just days before Prime Minister Theresa May takes the historic step of triggering Article 50 to pull the UK out of the European Union following last year’s referendum decision. That will begin two years of intense negotiations.
South West MEP and leader of the Conservatives in Brussels, Ashley Fox, was confident that a deal regarding the rights of EU citizens currently working in the UK and vice versa could be done quickly but that money could be the sticking point between the two sides.
He said: “It’s not helpful for the EU to be talking about how much the UK will need to pay to leave the Union. Of course, it is likely that we will have to pay for outstanding commitments and aspects we want to continue, such as Horizon 2020, which is the largest EU Research and Innovation programme.”
However, Mark Summers, managing director of Avon Valley Precision Engineering, which makes precision components for the aerospace industry at its factory at Bitton, was concerned about Brexit’s impact on manufacturers.
He said: “Much of our raw material is sourced from Europe and due to inflationary pressures as a result of the currency situation, this will impact on our costs. In addition, many of our products demand fast turnaround so if they end up getting stuck in customs then we won’t be competitive with our European counterparts.”
He also pointed to the skills challenge, adding: “The skills issue created by Brexit has focussed on unskilled labour. But UK manufacturing depends on very skilled EU workers. If they decide to repatriate we are going to be left with a chronic skills shortage.”
David Pothecary, UK export business continuity at Irish food ingredients manufacturer Kerry, which has a plant at Portbury, said: “Brexit could affect certain operations, for example ingredients for our UK-manufactured dried powder flavourings are produced in several EU countries and require multiple movements between the UK and the EU. Any trade barriers would be a concern to us. Additionally, a number of our UK-based staff are from the EU and this could create a challenge.”
Bristol Airport chief executive Robert Sinclair said only 6% of its passengers were from outside the EU and that Brexit was creating considerable uncertainty among UK airport operators and airlines. The airport would be calling on the government for clarity and transitional arrangements during Brexit negotiations.
Another critic was Charlie Allen, managing director of £40m turnover business Shiner, which distributes US-originated skateboards, scooters, Heelys and roller skates from its Aztec West HQ to the EU. He pointed to concerns over the future of the Customs Union – which the UK is leaving - import duties and currency fluctuations.
Foot Anstey head of energy Chris Pritchett, who is also a Bristol-based partner in its commercial team, focused on a positive message, calling for businesses to come together and collectively make Brexit an opportunity.
He said: “It presents an opportunity for us to leverage what makes us special, moving towards our goals, not away from the risks.”
Similarly, James Durie, chief executive of Bristol Chamber of Commerce and the West of England Initiative at Business West, said that despite all the complexity and the current uncertainty business would need to evolve and adapt to the new trading environment as this develops and that Business West would be working to better inform businesses and represent their interests to government.
He reinforced the need for government to provide as much certainty as it could and help provide support to the 5,500 businesses that currently export from Bristol and across the South West so they could be best positioned to sustain and grow their trade with EU markets.
Chair of the debate James Turgoose, JBP Parliamentary Affairs head of public policy, concluded: “It was a fascinating discussion and what particularly striking was how Brexit is going to impact upon almost all aspects of the economy and that businesses both large and small need to be planning now to develop their position and lobby government and local politicians.”
Pictured: The panel at this morning’s Brexit discussion
