Monday, 31 October 2016

Growing costs of Brexit

Some months before the referendum Nissan warned that if the UK voted to exit the EU they might be forced to move their operations. Following a meeting with the Prime Minister last week Nissan announced it was remaining in the NE, adding that it was committed to building two new models in the UK. This news naturally excited speculation  around a deal being done between Nissan and the government. A deal that would give preferential financial breaks for the car company to cover any tariff on costs.

The retention of 7,000 skilled jobs in an area of the country divested of industry in recent ties is a positive. However, if the government has agreed to cover any tariffs imposed upon Nissan, then where does this leave the erst of the UK car industry?

Can the government favour one company over another? Indeed, agriculture, aerospace, pharmaceuticals and finance are important sectors that will no doubt be seeking government assistance if we find ourselves outside the single market. Hardly the fiscal direction of a free market neo-liberal government.

If the government is willing to prop up these sectors with public monies in order to salvage jobs, why can't it step in to save our steel industry? Why are jobs being shed in public services? If we can save jobs in manufacturing and the finance sector we can keep jobs in public services.