Brexit makes us more vulnerable

THE decision of Airbus to cease production of its A380 jumbo jet is a regrettable move that is likely to lead to the loss of hundreds of Welsh jobs at the company’s Broughton plant as well as in its supply chain.

Those who have worked on producing the aircraft’s wings should be proud of their involvement with such a fine example of aeronautical engineering. As the company made clear in its statement, it will continue to fly for many years to come.

It seems, however, that airlines are not willing to buy further A380s at this time, making continued production unviable.

The decision, made for market reasons, is not directly attributable to Brexit.

It would be unwise, however, to conclude that Brexit is wholly irrelevant.

Airbus executives have not been shy to warn about the implications of a no-deal Brexit.

Recently the company’s chief executive Tom Enders spoke angrily about the UK Government’s handling of Brexit, calling it “disgraceful”. He also questioned the sanity of extreme Brexiteers.

Mr Enders revealed yesterday that the company had spent tens of millions of pounds preparing for a no-deal Brexit, including stockpiling aircraft parts in the UK and elsewhere in the EU.

Such measures could only ever be temporary, and there can be little doubt that in a post-Brexit arrangement where non-tariff barriers are in place, it would be only a matter of time before Airbus pulled out of Wales and shut its plants elsewhere in Britain.

Manufacturers have a tough enough time as it is, and don’t want the extra burden of dealing with bureaucratic checks that could be avoided by relocating to the EU.

When fluctuations in market demand occur, companies often consider making cuts to their workforce. Sometimes that can entail shutting down an individual plant, and sometimes pulling out of a country.

Being outside the single market and customs union will make us more vulnerable when company boards are looking at how to respond to a downturn in sales.

Pulling out of a country that has made itself more difficult to trade with because it has left the EU might easily be seen as the least worst option when tough decisions have to be made.

To point this out is not to engage in scaremongering: it’s simply being realistic.