Politicians and industry leaders have reacted angrily to Prime Minister Boris Johnson's claims in a BBC Look NE interview [26/09/19] relating to the North East, Nissan and a No Deal Brexit.
The Prime Minister said: “I don’t think consequences of a No Deal will be anything like as bad as you say. We can manage the just-in-time supply chains. As for tariffs I don’t think there is going to be any incentive on the part of our European friends to put tariffs on when they have a massive trade surplus with us.”
Jonson’s comments on just in time supply chain directly contradict statement made by 23 automotive business associations who said the UK’s departure from the EU without a deal would trigger ‘a seismic shift in trading conditions.’
It also ignores the fact that under WTO rules cars would be taxed at 10% when they crossed the UK-EU border and that agricultural tariffs would be significantly higher.
It also ignores the government’s own report ‘EU Exit – Long Term Analysis’ showed the value of goods and services in North East hit falling by 10.5%.
Bridget Phillipson MP, Houghton and Sunderland South and leading supporter of the People's Vote campaign said:
“Of course the Prime Minister would say ‘we can manage just-in-time supply chains’ in the event of No Deal – people like him and Nigel Farage will never suffer from the economic harm it causes.”
“It will be the people of Sunderland and the North East who suffer – like the workers at Nissan and in the supply chain who are already trying to deal with the wider challenges facing the automotive sector.”
“The message from those who represent car makers is crystal clear: ‘No Deal’ would be catastrophic. It would put an end to the frictionless trade that enables this vital industry to thrive, while WTO tariffs would cost employers and consumers billions.”
“The Prime Minister must know these tariffs are inevitable and legally unavoidable if we leave with No Deal, and that the chances of him securing a deal that is supported by Parliament before October 31 are getting slimmer with every passing day."
“This is now a matter of trust. Whether we can trust a Prime Minister who has acted unlawfully by shutting down parliament and has ignored his own Government’s reports showing the North East will be worst-hit in the event of a No Deal. Or whether we trust the people to solve this Brexit crisis through a final say referendum.”
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