quinta-feira, 10 de janeiro de 2019

Time for UK parliament to step up to preserve Britain’s reputation / Business ‘alarm’ at Brexit impasse, says UK minister



OPINION

Time for UK parliament to step up to preserve Britain’s reputation
UK business secretary, writing from a trip to Berlin, says companies need a Brexit deal to restore confidence in Britain.

By           GREG CLARK      1/9/19, 11:00 PM CET Updated 1/10/19, 10:57 AM CET

BERLIN — Since the U.K.'s EU referendum it has been my job as business secretary to work with companies and investors to convince them to keep faith with Britain. In doing so, I always make two main arguments.

The first is that Britain’s fundamental attractions are strong and getting stronger. We are an entrepreneurial economy, with world-beating creative and scientific talent and flexible, competitive markets. Through our modern industrial strategy we are building on those strengths — for example with the biggest increase in R&D that Britain has ever had in our history, and a national focus on the technological grand challenges that are sweeping the world and in which Britain enjoys a commanding position.


The second is that we are, and always will be, the pragmatic, open, pro-enterprise and dependable nation that the world has always considered us to be. That means, of course, that the U.K. government would always want to secure a cordial relationship with the EU that continues our ability to trade free of tariffs and unnecessary impediments.

On the whole, these arguments have proved reassuring. For example, of the five big competitive automotive investments up for grabs since the referendum, we have secured every one. Last month the global life sciences sector committed more than £1 billion of new investment in Britain on the back of our industrial strategy.

But no one should assume that investors have been relaxed about Brexit. In every case, in meetings and conversations from the United States to the Far East, I have constantly had to deploy both arguments.

In recent weeks, confidence from investors has been shaken. Debates in the U.K. parliament are monitored closely, and with mounting alarm, in boardrooms around the world. The dire prospect that we could tolerate trading with our largest and closest market on WTO terms — the most rudimentary that exist between any nations on earth — is bewildering to them. And when hundreds of millions of pounds are having to be diverted by companies from productive investments into defending themselves against the risk of a no-deal exit from the European Union — through piling up stocks, renting warehouses and planning shutdowns of production — investors have every right to object.

Most worrying to investors is the signal that Britain, after 40 years of being a reliable and confident place in which to do business, may be embarking on a previously unimagined era in which some are prepared to contemplate policies that would harm our economy and the businesses that have made us their home, whether those policies are to crash out of the EU without agreement or to follow the hard-left program put forward by the Labour Party.

We can’t go on like this. January 2019 must be the month in which parliament — for so long a source of strength for our international reputation — resolves how we will act together as a nation and give confidence to business.

Business has been supportive of the agreement the prime minister has negotiated because it reflects what job creators say is needed. A deal, rather than no deal. A transitional period to a new relationship, rather than a cliff edge. And the prospect of continuing a close trading relationship that avoids friction at the border that would be so damaging to just-in-time processes. Much has been made of the backstop, but it does carry the big advantage that Britain could never in future be forced onto WTO terms of trade whether by the EU or by being timed out, as the ticking clock of Article 50 entails.

That is why I strongly believe parliament should support the deal. MPs must act not simply as critics, but as responsible participants in making the most important decision that they may ever take. I believe parliament should move quickly and act responsibly to establish what will, and will not, command support.

Parliament can establish that it wants a no-deal Brexit to be ruled out. Most MPs, across the House, including many in government, would not countenance leaving on March 29 with no agreement.

Once that was clearly demonstrated, then parliament could make a clearer choice of how to proceed. It is not sufficient to record a disapproval of no deal — a further step would need to be taken to prevent it happening by default. This is a time for parliament to come together and work intensively to establish an agreement that can command majority support, recognizing that the deal that has been negotiated, if its terms had been considered dispassionately at almost any time before or after the referendum, would be regarded as clearly leaving the European Union while maintaining the close relationship with our nearest neighbors on which our prosperity depends.

Business has been quite clear that it prefers the certainty of a good deal to an extended debate about the terms of Brexit. It wants the deal to pass. From my dealings with businesses — small and large, British and international — I know that most place as the greatest priority preventing an unintended and deeply damaging rupture in just under 80 days' time.

In that, the needs of the economy, the livelihoods of millions and the views of most MPs are aligned. Now is the time for parliament to act on it.

Greg Clark is the U.K. secretary of state for business, energy and industrial strategy.




U.K. Business Secretary Greg Clark says “hundreds of millions of pounds” are now being diverted by companies into no-deal planning | Andy Rain/EPA

Business ‘alarm’ at Brexit impasse, says UK minister
‘We can’t go on like this,’ Business Secretary Greg Clark warns.
Clark’s intervention comes after MPs inflicted a second defeat on the prime minister in 24 hours |

By           TOM MCTAGUE               1/9/19, 11:00 PM CET Updated 1/10/19, 11:05 AM CET

LONDON — A no-deal Brexit must be taken off the table and a compromise package agreed by MPs within weeks to stem "mounting alarm" from international companies, according to U.K. Business Secretary Greg Clark.

Writing for POLITICO, Clark — one of Theresa May’s most powerful Cabinet ministers — says “hundreds of millions of pounds” are now being diverted by companies into no-deal planning, undermining investment in the U.K. economy.


“We can’t go on like this,” he warns.

Clark’s intervention comes after MPs inflicted a second defeat on the prime minister in 24 hours Wednesday. They voted through a controversial amendment that grabs more control over the Brexit process by forcing the prime minister to reveal her Plan B within three days should the House of Commons vote down her deal on Tuesday. With over 100 of her own backbenchers saying they can't support the deal, that defeat now looks all but certain.

The Plan B will take the form of a motion that MPs will be able to amend, giving parliament the tool to set out the type of Brexit it could accept. MPs could also test whether there was a majority for conditions to be attached to any agreement, such as a second referendum.

“Debates in parliament are monitored closely, and with mounting alarm, in boardrooms around the world" — Greg Clark

Writing exclusively for POLITICO, Clark says the impasse cannot go on much longer, setting a deadline of the end of the month to find a compromise. He calls on MPs to “move quickly and act responsibly to establish what will, and will not, command support.”

In an explosive intervention, which appears to flatly contradict the prime minister’s continued insistence that “no deal is better than a bad deal,” the business secretary adds: “Parliament can establish that it wants no deal to be ruled out. Most MPs, across the house, including many in government, would not countenance leaving on March 29 with no agreement. Once that was clearly demonstrated, then parliament could make a clearer choice of how to proceed. It is not sufficient to record a disapproval of no deal — a further step would need to be taken to prevent it happening by default.”


“This is a time for parliament to come together and work intensively to establish an agreement that can command majority support,” he wrote.

While Clark supports the prime minister’s Brexit deal, his comments suggest that even Cabinet ministers now accept it will be voted down next week.

Clark’s intervention comes after MPs inflicted a second defeat on the prime minister in 24 hours |

The proposal will spark fears among Brexiteers that the government could move to soften the prime minister's deal with Brussels even further in an attempt to win Labour MPs' support. In the House of Commons Wednesday, Conservative grandee Oliver Letwin suggested such an offer could be a permanent EU-U.K. customs union — fiercely opposed by Tory Euroskeptics — and a much more tightly bound relationship with the single market.

Clark believes that the failure to agree a deal is now beginning to badly damage Britain’s reputation.


“In recent weeks, confidence from investors has been shaken,” he wrote. “Debates in parliament are monitored closely, and with mounting alarm, in boardrooms around the world.

“The dire prospect that we could tolerate trading with our largest and closest market on WTO terms  — the most rudimentary that exist between any nations on earth — is bewildering to them.

“And when hundreds of millions of pounds are having to be diverted by companies from productive investments into defending themselves against the risk of no deal — through piling up stocks, renting warehouses and planning shutdowns of production — investors have every right to object.”

“The vote that the Government has just lost does not affect Brexit" — Jacob Rees-Mogg

Clark’s intervention is likely to spark fury from Euroskeptic Conservative MPs, the majority of whom fiercely oppose the prime minister’s deal.

On Twitter Wednesday night, Jacob Rees-Mogg, the leader of the Brexiteer caucus in parliament, insisted Brexit could not be stopped unless the government changes course to actively stop it. “The vote that the Government has just lost does not affect Brexit. It merely requires a motion to be tabled not even debated.”

However, as a result of the amendment put down by Tory backbencher Dominic Grieve, which was passed Wednesday, those MPs opposed to no deal now have a mechanism to try to force the government’s hand by voting down May’s deal and then seeking to amend any Plan B proposal she puts before the House.

Grieve said the time pressure facing parliament means it is sensible to fast-track the process. “I realize there are a few of my colleagues who believe that if the government’s deal is rejected we should simply do nothing and leave the EU on March 29 with no deal at all and with all, to my mind, the calamitous consequences that would follow on from it,” he told the BBC.

“I disagree with that, and so I think do the vast majority of members of parliament. The only way we can move forward if the government’s deal is not acceptable to parliament is for parliament to engage with government and find a solution, which is what I am trying to do.”

Despite the extra time, Labour’s Shadow Brexit Secretary Keir Starmer said the U.K. would now inevitably have to ask for more time before leaving the EU.

He said: "There is a question of extension of Article 50 and that may well be inevitable now given the position that we are in."

This article is part of POLITICO’s Brexit Pro service, which dives deep into Britain's impending departure from the European Union. For a complimentary trial, email pro@politico.eu mentioning Brexit.

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