CBI chief warns of ‘catastrophic’ no-deal Brexit
● Industry expert uses business body’s annual Scottish dinner to warn that Scottish operation will cause red tape
Nicola Sturgeon has been warned by one of the most influential figures in British industry that businesses are not ready for a separate Scottish immigration system.
The warning was made by CBI director-general Carolyn Fairbairn when she also spoke of “catastrophic risks” of a no-deal Brexit at a dinner.
Nicola Sturgeon has been warned by one of the most influential figures in British industry that businesses are not ready for a separate Scottish immigration system.
The warning was made last night by CBI director-general Carolyn Fairbairn when she also spoke of the “catastrophic risks” of a no-deal Brexit at a dinner attended by the First Minister.
Ms Sturgeon has made repeated calls for a Scottish-specific immigration system in the aftermath of the Brexit vote.
But Ms Fairbairn said businesses she has spoken to say “not right now” in a speech which focussed on the impact of EU withdrawal on business.
Speaking at her third CBI Scotland annual dinner at the Hilton Hotel in Glasgow, Ms Fairbairn said devolving immigration would create unwanted red tape.
Instead she spoke of the importance of building a Ukwide post-brexit immigration system that combines public confidence with ability to attract the people and skills companies need.
Ms Sturgeon has argued that Scotland needs power over immigration to attract more people north of the Border where there is a rapidly ageing population. The SNP has contrasted its approach with the UK government’s “hostile” approach to immigration which, she says, risks damaging the Scottish economy.
Ms Fairbairn acknowledged that Scotland had problems with skills shortages but disputed Ms Sturgeon’s claim that a Scottish immigration system was the answer.
“Scotland has a brilliant and talented workforce. But look at the stats, and it’s also a shrinking workforce,” Ms Fairbairn said. “Demographics are not in Scotland’s favour. Add Brexit uncertainty and a brain-drain to the south-east and overseas and you have a potent mix of problems.”
She said skills shortages were “biting” now and pointed out that the CBI had called for a new immigration system that earned public trust while allowing businesses to attract the people they need.
The CBI’S vision was for a system that was “open, but controlled too”.
“We are clear it must work for Scotland,” she said. “Some have asked – do we need a devolved solution for Scotland? It’s a fair question. But the businesses I’ve spoken to say ‘not right now’. Let’s get it right for the whole UK. The better the outcome we get, the less need for variation across the UK. The less companies need worry about doubled up systems and extra red tape.”
The First Minister’s spokesman said: “We are clear there is a weight of evidence that Scotland should be in control of its own immigration policy.”
Ms Fairbairn also told her audience of Scottish business leaders that a no-deal Brexit is “simply not an option” and poses “catastrophic risks” to the economy. She called on Scottish businesses to stand up and be counted on the key issues, arguing that the evidence they bring to difficult issues in turbulent times can lead to better outcomes for both the economy and society.
A no-de a lb rex it would mean Scotland’s food exports would not make it to market in peak condition and would create
barriers to talent coming to Scotland’s services companies while new regulations would put Scotland’s status as a fintech power at risk.
At the same dinner, Ms Sturgeon announced that the Scottish Government is teaming up with the CBI in an effort to boost Scottish exports. The CBI will mobilise its membership to help deliver 300 business peer-to-peer mentorships over the next three years to increase awareness of the benefit of exporting.
The announcement came as new figures show Scottish exports of goods increased by 7 per cent to £28.2 billion over the year to June 2018, the fastest rate of growth of any country in the UK. Speaking at the dinner, Ms Sturgeon said: “CBI Scotland is an important voice for businesses and an important critical friend and partner to the Scottish Government – so its help is vital.”