In the frantic run up to the meaningful vote, an avalanche of propaganda on a no deal Brexit is coming from Brexit Central although they seem to be trying to convince themselves more than anybody else. Their argument is that not only will there be no problems, but that it is actually a desirable outcome. One article (HERE) is from Steve Baker, the former DEXEU minister, who tells us the EU isn't a land of milk and honey and we'll be better off out of it. Needless to say all the experts disagree.
Next is Martin Howe QC (HERE), a lawyer from Lawyers for Britain who, for reasons not explained, delivers part of an economic tract from Economists for Free Trade’s new report, No Deal is the Best Deal for Britain. This is Patrick Minford's gang of eccentric nutjobs who claim we'll be boosted by £80 billion under a no deal scenario which nobody believes. Why they need a lawyer to deliver the economic case is a mystery.
All these men have form on Brexit so what they have to say will come as no surprise. But then we get a businessman (HERE) declaring bizarrely that leaving the EU will magically make us 'more competitive and innovative'. Quite why this should be so is not clear and the only evidence comes from this statement:
"In actual fact, departing on WTO terms will act as a catalyst for businesses to become more competitive and more innovative. Gerard Lyons, a leading British economist, has argued that stifling EU regulation has made UK exporters less competitive and less productive in global markets whilst also doing little to increase wages. Only once the UK is open to trade with the world can we reverse this trend".
The businessman is Charles Watkinson, described as founding director of corrosion engineering group Corrocoat. Also mentioned in the text is his other company Glassflake. Why EU regulations haven't 'stifled' Germany's €200 billion trade surplus he doesn't say.
However, when you check on Corrocoat Ltd (HERE) you find it had a turnover in 2016-17 of just £4.43 million not much more than a large shop. Mr Watkinson's other company, Glassflake Ltd, is also not quite the global behemoth you might think with a turnover of £2.89 million in 2016-17 (HERE).
Corrocoat was founded in 1975 and after 40 years of trading it turns over less than £5 million and Glassflake is even smaller. It's not clear how much exporting they do but none of it will be just in time or perishable goods. And quite what impact EU regulations have on his small business is also unclear, I suspect very little.
This is the trouble with Brexit Central, they can get businessmen to endorse leaving without a deal, but when you look at their companies they turn out to be minnows whose operations will not be directly impacted by a no deal Brexit. However, he might find there is less demand for his products if his EU exporting customers are affected.
To put it into perspective, today it is being reported that Toyota at Burnaston, launching a new Corolla model, say a no deal Brexit is not an option (HERE). Bear in mind 90% of the plant's output goes to the EU. Toyota UK turned over €2,479,634,000 (€2.479 BILLION) for the year ending March 31st 2018 on which it made a LOSS of €252,854,000 (€252 MILLION) (HERE).
Who should the government listen to? Toyota or Charlie Watkinson? Tough, eh?
To put it into perspective, today it is being reported that Toyota at Burnaston, launching a new Corolla model, say a no deal Brexit is not an option (HERE). Bear in mind 90% of the plant's output goes to the EU. Toyota UK turned over €2,479,634,000 (€2.479 BILLION) for the year ending March 31st 2018 on which it made a LOSS of €252,854,000 (€252 MILLION) (HERE).
Who should the government listen to? Toyota or Charlie Watkinson? Tough, eh?
