GOVE MEETS CAR MAKERS
AUTOMOTIVE INDUSTRY TALKS TO ALLAY BREXIT FEARS
CABINET Secretary Michael Gove made a flying visit to the West Midlands to try to soothe the fears of troubled car makers amid rising frustration over the spectre of a no-deal Brexit.
Mr Gove travelled to Coventry on Monday for a ‘no holds barred’ discussion with regional automotive industry representatives in a powwow organised by West Midlands Mayor Andy Street.
It gave business leaders the chance to look the minister in the eyes when asking if the Boris Johnson-led Government was committed to finding a deal – and what they got, according to Mr Street, was “the absolute commitment of the Government to get a deal.”
Companies recognised we do have to leave the EU, that is what the people voted for and we have to respect that.
Michael Gove
With just a month to go until the Brexit deadline of October 31, representatives from Ford, Toyota and Aston Martin joined the SMMT (Society of Motor Manufacturers and Traders), Make UK, the British Ceramics Confederation and the European Union Relationship and Industrial Strategy (EURIS) to press home their concerns.
They vowed to continue to collectively press the case for a deal that guarantees ‘barrier free trade’ across Europe to protect their workers’ jobs and encourage investment.
Speaking after the meeting, held at the magnificent National Automotive Innovation Centre at the University of Warwick, Mr Gove said it had been a positive discussion.
“They (the representatives present) are absolutely committed to helping us to secure a good deal with the EU,” he added.
“They recognised there is huge potential for British industry in the future and that a good deal with the European Union will put us in the best possible place, not just to guarantee existing jobs but to take advantage of new markets and new opportunities in the future.”
Mr Gove said those in the room “recognised that we do have to leave the EU.”
He said: “Companies recognised we do have to leave the EU, that is what the people voted for and we have to respect that.
“If we leave without a deal there will be some specific challenges – I ran through those with the businesses, we need to understand what those are and how those will be mitigated and how any of the risks can be reduced.
“Over the course of the last six or seven weeks we have taken steps to reduce those risks. The ‘just in time’ industries need to ensure trucks can run, parts can arrive, and we are doing everything we can to ensure we do not impose unnecessary checks at the borders on our part.”
The meeting came the day that one of the participants, the automotive industry body SMMT, declared that car companies across the continent were united in wanting a nodeal Brexit to be taken off the table.
They also called for the retention of barrier free trade that they said was crucial for the continued success of the deeply integrated pan-European auto sector.
The SMMT also warned the application of World Trade Organisation tariffs on cars and vans as a result of a no-deal Brexit could mean a bill of close to six billion euros for the industry and consumers.
Jack Dromey, Shadow Minister for Work & Pensions and MP for Erdington, was unimpressed by the Minister’s assessment of the Brexit impact on the region’s businesses.
Speaking from the Labour Conference, he said: “On the day that car makers across Europe had spoken with one voice warning of the catastrophe for our country and the continent of a no-deal Brexit, Michael Gove seems to be in denial. The simple reality is we are nowhere near ready for Brexit, and it looks increasingly likely that the agenda of Boris Johnson is to crash out with no-deal.
“We have heard from British motor manufacturers, British aerospace builders and British engineering companies their concerns about the damage that would be done to our manufacturing businesses... it’s about time Michael Gove heard the true voice of Britain.”
Mr Street said businesses were reassured the minister wants to understand the specific issues they face.
“It was crystal clear that he understood those and wanted to overcome those,” said the mayor.
He added that the car industry has been “a real success story” for the Midlands and he was confident that, post Brexit, “we can build on it again.”
He also urged small businesses who might be affected by Brexit to ensure they were prepared.