Jaguar Land Rover has entered the fray about frictionless trade (HERE), (HERE) and (HERE) with the threat that they may have to leave the UK if "the UK leaves the single market" according to The Guardian. This is perhaps not quite accurate since the Birmingham Mail (HERE) quotes the Chief Executive, Dr Ralf Speth as saying:
"However we, and our partners in the supply chain, face an unpredictable future if the Brexit negotiations do not maintain free and frictionless trade with the EU and unrestricted access to the single market.
I think the company is being as diplomatic as it can be. Unrestricted access to the SM in his terms may not be membership of it but I don't see how you can have one without the other. He maybe trying to spare the PM some awkward questions but what there is no arguing with is that government policy is to have restricted access to the single market.
Owner Paterson popped up on Radio 4 this morning speaking about JLR's statement, babbling away as if on speed, about trade continuing to be tariff free, that the pound has been devalued anyway by more than the tariffs and that by leaving the customs union and the single market JLR will get access to cheaper parts from all over the world. This is a prominent ex government minister and foam-at-the-mouth Brexiteer. But actually, he knows nothing after two years of being told of the problems, an amazing feat even by his own tin ear standards.
It is not primarily about tariffs at all. It's about regulatory standards, customs paperwork and rules of origin and delays at Dover and so on. Even if Paterson's point about tariffs was relevant (and it definitely isn't) he is arguing there won't be tariffs but then saying the devalued pound has made our exports cheaper by more than the tariffs anyway! But JLR are more concerned about their "partners in the supply chain" and because of the lower pound these parts are already more expensive, not cheaper.
And running a just in time (JIT) mass production line with parts coming by sea from "all over the world" is so stupid only an idiot like Paterson would propose it. As Honda pointed out the other day using seabourne freight would mean 9 days stock holding in a warehouse that would have to be the largest building in the world. Bear in mind Honda are not that big, JLR are the UK's largest manufacturer and I assume their warehouse(s) would be even more massive.
Let's think about this. We have some of the biggest and best companies in the country pleading for the single market and the customs union and warning of dire consequences on one side, and on the other side a few wild eyed extremists pushing government policy to take us out of both. You would think it a no-brainer, but it isn't.
One of the more bizarre aspects of Brexit is that for years we were told business wanted to shake off the burden of all the unnecessary regulations from the EU but now the truth is emerging. Shaking off the regulations would be a disaster.
When will somebody in government come out with the truth. The country can have Brexit or prosperity, but not both. We can have sovereignty, but not highly skilled jobs in the automotive and other sectors. When will a senior minister say we can give you Brexit but the cost will be the crippling of business for decades, the loss of tax revenues and a reduction in infrastructure spending and public services. If this is what you want it's easy to do, but the costs to current and future generations will be incalculable.
Update: The i news (HERE) has picked up Owen Paterson's comments on The Today programme and I see he is being mercilessly attacked on social media for thinking he knows how to run JLR better than the CEO! You can imagine after the hard Brexit Paterson craves, in five years the CEO of Jaguar, addressing shareholders at the winding up of the company, explaining he couldn't understand how it all went wrong because Owen Paterson said it would all be "wonderful". You can bet Paterson wouldn't be around to placate the 40,000 unemployed car workers who would be looking for answers. He'd leave that to somebody else.
