Ministers warn Airbus it risks losing defence deals if it quits Britain
Aircraft manufacturer accused of trying to influence Government with ‘ridiculous empty threats’
‘Aerospace manufacturers need customers. Perhaps they might reflect on that’
MINISTERS have warned the aircraft manufacturer Airbus that it risks losing vital defence contracts if it goes ahead with its threat to pull out of Britain in the event of a “no deal” Brexit.
Ben Wallace, the security minister, reminded the firm that without the support of Britain it would not have been able to cover its budget overruns on the A400M transporter aircraft, of which the RAF has 14.
Meanwhile, Jack Lopresti, the MP whose constituency includes its Bristol factory, suggested EU member states were “using Airbus to try to influence the UK Government into giving them what they want in any Brexit deal”.
Separately last night, BMW also warned of the consequences of uncertainty over Brexit, saying it could damage the competitiveness of the UK automotive industry.
The company, which owns Rollsroyce Motor Cars and MINI, did not threaten to close any of its UK factories, but said it would have to start spending on “contingency plans” within “the next couple of months” without further clarity on the Brexit end state.
Mr Lopresti said Airbus was making “ridiculous and empty threats” because he met senior managers at the firm on Thursday and Brexit “wasn’t mentioned by the firm once”.
The row came as David Davis, the Brexit Secretary, promises to deliver “the Brexit people voted for”.
Writing in The Daily Telegraph on the second anniversary of the EU Referendum, he pledges that a Government White Paper on Brexit to be published next month will “tackle this misconception, peddled by some Eurocrats, that the UK doesn’t know what it wants out of these negotiations”.
Airbus, which employs 14,000 people at 25 UK sites, said yesterday it would “reconsider its investments in the UK, and its long-term footprint in the country” if Britain left the single market and customs union without a lengthy transition agreement.
The Dutch-based multinational set out its stance in a “risk assessment” in which it also called on the Government to extend the Brexit transition period, which is currently due to run until December 2020 if a deal is agreed.
But Mr Wallace issued a thinly veiled warning to the firm by saying: “When I last checked, if it wasn’t for the customer countries of the A400M, Airbus would have not been able to cover the over budget and delays. Aerospace manufacturers need customers. Perhaps they might reflect on that.”
In 2010 Airbus faced having to cancel its troubled A400M project, but its customers, including the RAF, chose to carry on supporting the project and ordered 22 aircraft at a total cost of more than £2billion.
Last year the MOD signed a £410million maintenance contract with Airbus for its A400M fleet, and in 2016 it agreed a £500million deal for 30 Airbus helicopters.
Mr Lopresti, a pro-brexit Conservative, said: “One could be forgiven for thinking that some EU member state governments were using Airbus to try to influence the UK Government into giving them what they want in any future Brexit deal. I’m struggling to believe this sabre rattling from Airbus is helpful or credible.”
Mr Lopresti said that during his meeting on Thursday with Katherine Bennett, the Airbus senior vice president, and other managers, the firm asked for Government subsidies and invited the Prime Minister to open a new facility on the site. “At no point was Brexit mentioned by Airbus,” he said. “Airbus seem to be in a state of confusion about their position.”
Tom Williams, the chief operating officer of Airbus Commercial Aircraft, told Today on BBC Radio 4 the firm was “becoming increasingly frustrated with the lack of clarity” over Brexit. He said: “We have to come to the point where we have to make serious decisions. Quite often those decisions are long-term in nature and without clarity it’s too dangerous for us to proceed.”