The Daily Telegraph

Ministers warn Airbus it risks losing defence deals if it quits Britain

Aircraft manufactur­er accused of trying to influence Government with ‘ridiculous empty threats’

- By Gordon Rayner and Jack Maidment

‘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.”

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