Committee in call to plan for ‘no deal’ exit from Europe
THE Welsh Government must plan for a “no deal” Brexit, a cross-party committee of AMs has urged.
The UK Government hopes to agree a transition phase with the EU and strike a deal on a longterm relationship with the remaining 27 members states – but concern remains that the talks process could collapse.
David Rees, the chairman of the External Affairs Committee, said he was “surprised” that no plans were being put in place for a Brexit without a deal.
The Welsh Government said a no deal exit would be an “appalling outcome for Wales and the UK” and that its “first priority is to work against that possibility”.
Aberavon AM Mr Rees said: “We are clear that whilst we agree with the Welsh Government that a ‘no deal scenario’ is undesirable, more needs to be done in terms of scenario planning, including for such a ‘no deal’ outcome... We accept the Welsh Government is working to influence its counterparts in the UK Government to strike a deal with the EU but do not accept there is no planning that can be done if we were to leave without one.”
In December the House of Lords’ EU committee said it was “difficult, if not impossible, to envisage a worse outcome for the United Kingdom” than a no deal Brexit.
There were concerns it would lead to billions of pounds in new tariffs, costly customs delays and even disruption to medical supplies.
Mr Rees said: “Sectors and organisations are looking to the Welsh Government for leadership, and it is imperative that they are able to start making their own plans for life outside the EU. We are calling on the Welsh Government to give a stronger steer to these sectors to ensure we are all set on the same path when we leave at the end of the negotiations.”
Cabinet Secretary for Finance Mark Drakeford told the AMs that “no amount of public money, no amount of preparation, will avoid the harm that will be done to Wales and its economy by leaving the European Union without a deal”.
A Welsh Government spokeswoman said: “We welcome the report, which is particularly timely following the publication of our Brexit trade paper that fulfils many of the committee’s recommendations. We look forward to engaging further with the committee and will respond fully to the report in due course.
“We have always said that a ‘no deal’ scenario would be an appalling outcome for Wales and the UK, and our first priority is to work against that possibility.”
The committee recommends the Welsh Government “urgently examines the likely parameters of various Brexit scenarios, including a ‘no deal scenario’, and reports on progress within six months”.
It also recommends it publishes “clear and accessible guidance to businesses, public sector organisations and the third sector”.
There is concern as to how regional funding that has been provided by the EU will be replaced. The AMs press Welsh ministers to “seek clarity from the UK Government on how the proposed Shared Prosperity Fund would be allocated and administered”. They are also concerned that the university sector could suffer “a loss of access to funding” and that research staff could have reduced “mobility”.