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#Brexit means possible job losses for Wales

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Welsh Labour MEP Derek Vaughan
(pictured) has warned that the possible job losses at Airbus will be the first of many in Wales as other big employers prepare for Brexit, writes Colin Stevens.

His warning follows comments from Airbus COO Tom Williams who said thousands of Welsh jobs are at risk at Airbus and suppliers in North Wales as the company prepares for a hard Brexit or worse, a no-deal Brexit.

Vaughan said: “Airbus have given repeated warnings it would reconsider its presence in the UK due to Brexit and this should be a wakeup call for workers, trade unions and politicians. As Airbus makes clear, there is no good scenario outside the EU. Lots of big employers in Wales have voiced concerns including Ford, Tata Steel and Toyota. Also Vauxhall, which employs many Welsh people in is Cheshire plant. It’s not just the thousands of jobs at these plants that will go, it’s also all the jobs in the supply chain. Thousands more lorry drivers, hospitality workers, local business owners and services depend on these factories to survive."

The UK government’s alleged lack of Brexit planning has also come under attack after two other big employers in Wales issued warnings that they too have some concerns about their future.

In addition to Airbus fearing future customs and paperwork delays will make UK plants uncompetitive, Vauxhall says it may need to stop production until the Brexit terms are clear and Ford has warned that any sort of border restrictions or customs friction would be an inhibitor to them continuing to conduct business here. Each are big employers in Wales. Airbus Broughton employs over 6,500 people, the Ford factory in Bridgend employs close to 2000 and many people travel over to the Vauxhall factory in Cheshire for work.

Vaughan said,“This is alarming for Welsh workers, to say the least, with big manufacturers warning they may need to stop production or shut up shop. The reality is becoming clearer as time passes.This is hard evidence that at the very least we need to remain part of the Customs Union and Single Market. Nobody voted to be worse off and politicians need to be honest about what is at stake and what is achievable.”

A spokesman for the South Wales Chamber of Commerce also voiced concern, saying, “Many of the issues in Wales are the same concerns that businesses across the UK have such as what are the technicalities around exporting? There are however some issues that are particularly pertinent in Wales. We receive a high proportion of the EU funding that goes to the UK (we are the only part of the UK that receives more money from the EU than we give) and we have concerns that a ‘hard’ sea border with Ireland will cause difficulties for Welsh ports if there is a ‘soft’ land border within Ireland.”

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Such fears continue despite the UK Government’s recent release of its “no-deal” technical notes.

Harri Lloyd-Davies, President of the South Wales Chamber of Commerce, said the Brexit notices, which are aimed at giving businesses and consumers advice on the implications of a ‘no deal’ exit from the EU, “raise questions” for Welsh businesses.

Lloyd-Davies said: “The technical notices published by the UK Government are a good start to helping Welsh businesses prepare for Brexit, but we still need more detailed information to be able to trade as smoothly as possible across borders if we end up with no UK-EU deal on 30 March next year.

“There are several issues that are particularly pertinent to businesses in Wales.Given well-publicised concerns surrounding the capacity and readiness of UK customs systems, what impact will there be at Welsh ports? Most exports from our sea-ports go to Ireland, but with nearly all of these technical notices featuring the same placeholder text on the Irish border we are still left asking questions over whether the sea and land border with the Republic of Ireland will be treated differently.

“The reiteration of the government’s broad commitment to guarantee resources for EU-funded projects approved prior to the UK’s departure from the EU is welcome. We rely heavily on EU funds to deliver infrastructure, regeneration and employment in communities across Wales. While the government is doing the right thing by saying that it will stand behind these projects until their expected completion in 2020 we await further detail spelling out exactly how this guarantee will work in practice, and how such projects could be funded in future,” he added.

Uncertainty also exists about citizens’ rights after Brexit and a report examines how the Welsh Government could use its powers to protect such rights.

The report – 'The Feasibility of Associate EU Citizenship for UK nationals post-Brexit' - was commissioned by Welsh MEP Jill Evans and conducted by a team of researchers at Swansea University.

Evans, a Plaid Cymru deputy, said, "This report is an important contribution to the debate around UK citizens retaining their EU citizenship, or having the right to become associate EU citizens.

"Many people in Wales still identify strongly as Welsh European and are horrified at the thought of losing their EU citizenship, with all the benefits it brings. I have received hundreds of emails from constituents who rightly feel that it is unfair that their rights are stripped away from them against their will."

Elsewhere, Eluned Hâf, Head of Wales Arts International, flags up another issue - the impact of Brexit on culture.

She said: “Wales is one of the four nations of the UK situated on its western shores. We share our Celtic cultural heritage with nations of the Atlantic arc of Europe and also with the rich tapestry of cultures of the UK. If our identity is a complex one, so is the governance structure that underpins the UK nations, even before Brexit.As vested interests jostle for attention, we must not forget that the cultural and creative sectors are big business for Europe.”

Despite much of Wales voting to Leave, Professor Michael Keating, of the UK-based Centre on Constitutional Change, says that EU membership had made it easier for countries like Wales to make a success of devolution. He said: “EU membership has allowed devolution to be more expansive than would been.”

Airbus is one of the biggest employers in Wales and builds wings for aircraft at its plant in Broughton. It recently conducted a risk assessment outlining the urgent risks to its business,including its Welsh plant, arising from the UK exiting the EU without a withdrawal agreement.

It states that the UK exiting the EU in March next year without a deal would lead to severe disruption and interruption of UK production. This scenario may force Airbus to reconsider its investments in the UK, and its long-term footprint in Wales.

Airbus Commercial Aircraft Chief Operating Officer Tom Williams told this website: “In any scenario, Brexit has severe negative consequences for the UK aerospace industry and Airbus in particular. Therefore, immediate mitigation measures would need to be accelerated. While Airbus understands that the political process must go on, as a responsible business we require immediate details on the pragmatic steps that should be taken to operate competitively.”

He added: “Without these, Airbus believes that the impacts on our UK operations could be significant. We have sought to highlight our concerns over the past 12 months, without success. Far from Project Fear, this is a dawning reality for Airbus. Put simply, a No Deal scenario directly threatens Airbus’ future in the UK.

“While the final settlement between the UK and the European Union is still to be negotiated, there are steps that businesses of all sizes can take now to start planning ahead.”

Similar reservations are shared by the South Wales and Mid Wales Chamber of Commerce whose spokesman said, “The UK’s impending departure from the EU will bring change for businesses of every size and sector. While some Welsh companies are already planning for the challenges and opportunities ahead, Chambers of Commerce believe that all firms – not just those directly and immediately affected – should be undertaking a Brexit ‘health check’, and a broader test of existing business plans. Time spent thinking through the changes that Brexit may bring could yield real dividends in future.

Recently, the Welsh Chamber conducted a survey which asked local firms if they had devoted time to considering the potential consequences of Brexit or consulted with their Board of Directors on Brexit. Companies in South Wales were also asked if they had considered how changes in the UK-EU trade relationship could affect them.

Worryingly, the Chamber spokesman said: “The findings suggest that a significant number of firms are either watching and waiting – or taking no action at all.”

Earlier this year, the External Affairs and Additional Legislation committee of the Welsh National Assembly conducted a major exercise looking at “how the Welsh government is preparing for Brexit.”

The 30-page report that it has produced, seen by this report, makes several recommendations, including that the Welsh government “urgently examines” all possible Brexit scenarios and issues “clear and accessible guidance” to businesses and public sector organisations on various possible Brexit scenarios.

Another proposal is that Wales “seeks clarity” from the UK government on how the Shared Prosperity Fund will be allocated and administered and, also, spells out how it intends to spend the “anticipated consequential allocations” arising from Brexit.

The report says “many questions” remain about the impact Brexit will have on Wales  and that the Welsh government “needs to do more in terms of scenario planning”.

It states: "Our inquiry also found that people across the public and private sectors in Wales need a strong steer from the Welsh government about how they should be preparing for Brexit.”

MEP Vaughan has called on the UK government to commission and publish economic assessments of how Brexit will impact Wales.

Vaughan said: “The Welsh government has done a huge amount of work on the consequences of Brexit.However, the UK government is taking decisions about Brexit without assessing its impact on Wales. We are pushing ministers to put consideration of Welsh people and businesses at the heart of its decisions.

"People and businesses throughout Wales have a right to know what government decisions will mean for their jobs, their livelihoods, their futures.

“The bottom line is we need to know what will happen to Wales outside the EU. The government cannot allow the chaos, uncertainty and confusion around Brexit to continue.”

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