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Afryie's plan to quit EU could cost 14,067 jobs in Windsor and Slough

October 7, 2013 12:00 PM
By Liberal Democrats Windsor Constituency

Plans by Windsor's right wing M.P. to quit Europe could put thousands of local jobs at risk.

Windsor Conservatives Broken Tree Logo

Adam Afryie denys that his actions are part of a future bid for Conservative Party Leadership.

That's the verdict of Local Liberal Democrats after careful analysis of local employment figures.

"Many jobs in our area and across the UK are linked in to our membership of Europe, the free trade area and the economies of scale it delivers to British and foreign companies based in the UK and East Berkshire." says local Lib Dem Julian Tisi.

Windsor and the East Berks Area excel in Tourism, Pharmaceuticals, Aerospace, Chemicals, Agriculture, Plastics and even support to the automotive industry. All of these areas are benefitting from Britain's membership of the common market place.

"If we were to leave the EU we might be able to retain membership of this common market as members of the European Economic Area (EEA) as Iceland, Liechtenstein and Norway have but, like those countries, we would be bound by European trade laws without having any say whatsoever in making the rules.

This would be the worst of both worlds. Instead of sharing our sovereignty with the other EU member states, we would simply be forced to surrender it to them," says local campaigner Richard Fagence.

Big businesses, foreign investors and governments such as Japan and the United States have already said that Britain leaving the EU would reduce our influence with them and cut future inward investment by companies seeking a trading base within the EU.

In total, 14,067 jobs in Windsor and Slough are at risk if Britain leaves the European Union. [xxviii] [xxix]

Further Reading:


European Jobs in our Area - Tourism

  • Windsor has a vibrant tourism industry with attractions such as Windsor Castle, Windsor Great Park, Ascot Racecourse, and Legoland which annually attracts 1.9 million visitors. Tourism forms the backbone of Berkshire's economy with nearby Heathrow International Airport welcoming 70 million passengers annually. In 2011 there were 7.33 million tourist visits to Windsor, 28% of which were from overseas. Tourism generates £578.2 million per year for the local economy and over 7,200 workers in Windsor are directly employed in the industry in order to service the needs of these visitors
  • Key to this success is Britain's EU membership. EU Freedom of movement of labour rules allow visa free travel for tourists from other EU countries to UK.
  • In 2012, EU citizens made 5.34 million tourist and business visits in the month of august alone representing 60.8% of all foreign visits to the UK. In 2012, visitors from France, Germany, Italy and Spain accounted for nearly one third of all money spent by tourists in the UK.
  • However, if we leave the EU this could mean that European visitors no longer enjoy visa-free travel. This would result in less tourists visiting Windsor and less money spent in hotels, restaurants and other local services in the town.

European Jobs in our Area - Financial Services

  • Financial and professional services are a huge employer across Berkshire and the South-East with 113,600 employed in financial services and a further 129,900 employed in professional services, generating £18 billion for the UK economy. Over 2,400 people are employed in financial services in Windsor and Slough,[i] including at FM Global and Assurant Solutions.
  • The area's success story in financial services is built on Britain's EU membership. EU legislation has liberalised EU financial markets to competition from British banks, funds and insurance companies and allowed unrestricted access to EU markets. This has been key to attracting global companies to base themselves in the East Berkshire. The results have been remarkable: in 2012, the UK had a £16.6 billion trade surplus (37% of total) with the rest of the EU in financial services[ii].
  • However, if we leave the EU then the area's financial services companies could be blocked from the EU market without any guarantees of market access for its banks, funds or insurance firms unless they relocate to other EU countries. If companies like Assurant Solutions are locked out of the EU, they would likely relocate to elsewhere in the EU resulting in huge job losses in the area.

European Jobs in our Area - Pharmaceuticals

  • Pharmaceuticals companies are a huge employer in Slough with global companies such as UCB Pharma employing 600 local people in the town. In total, the pharmaceutical industry employs 77,795 people in the UK[iii].
  • The town's success story in pharmaceuticals is built on Britain's EU membership. In 2012, 49.4% of UK exports of pharmaceutical products went to other EU countries[iv] and, because we are a member of the European Union, our manufacturers have the same standards, clinical practices, patent protection and other requirements[v] across all 27 EU countries, allowing unhindered export of British pharmaceuticals.
  • Outside the EU, Slough's pharmaceutical companies would have no guaranteed access to the EU's market, particularly if the UK and EU develop different standards for the sale of pharmaceuticals. This would cripple UK exports and could mean that companies such as GlaxoSmithKline and UCB Pharma move to other countries still part of the EU, causing huge job losses.

European Jobs in our Area - Aerospace

  • East Berkshire is a hub for aviation and aerospace industries. By far the largest employer in the region is Heathrow International Airport which contributes over 114,000 jobs to the local economy. As a hub for many large airlines including British Airways, employment created by Heathrow amounts to around 22% of local jobs.
  • The region's success story in aerospace is built on Britain's EU membership. In 2012, 42% of aircraft and spacecraft exports went to other EU countries[vi] and, because we are a member of he European Union, our manufacturers pay no import taxes and have the same regulations allowing unhindered export of aerospace products.
  • However, if we leave the EU, spacecraft exports from Windsor and Slough could face a 4.2% EU import tax[vii] and some helicopter exports could face a 2.7% EU import tax[viii] while other aviation products would have to comply with burdensome import licences[ix]. This would cripple aerospace and aviation exports from around the region and make them less competitive than German or French products, causing huge job losses.
  • No wonder that the Head of ADS, the trade association for the aerospace, defence and security industry, said that it was vital for Britain to remain "at the heart of Europe"[x].

European Jobs in our Area - Automotive Industry

  • Automotive companies are a huge employer in the Slough area with companies such as Fiat and Honda employing hundreds of local people. In total, the automotive industry employs 720,000 people in the UK and constituted 9.2% of UK exports of goods in 2011[xi].
  • The area's success story in automotives is built on Britain's EU membership. 40% of all vehicles manufactured in the UK are exported to the EU[xii]. As the UK is a member of the European Union, our exporters pay no import taxes and have the same regulations allowing unhindered export of vehicles.
  • However, if we leave the EU, vehicle exports from Slough could face a 10% tariff for cars[xiii] and a 22% tariff for some larger vehicles[xiv]. This could mean that companies such as Fiat and Honda relocate to other countries still part of the EU overtime, by switching new investment and model manufacture, causing huge job losses and plant closures.

European Jobs in our Area - Chemicals

  • The chemicals industry is a big employer in Slough and the surrounding area, for example AkzoNobel which employs 750 local people. Nationally, the chemical industry employs 214,000 people, has a national turnover of £60 billion and an annual trade surplus of £8 billion[xv].
  • The region's success story in chemicals is built on Britain's EU membership. In 2012, 59% of UK exports of organic and inorganic chemicals went to other EU countries[xvi] and, because we are a member of the European Union, our manufacturers export under the same rules and regulations, and pay no import taxes when exporting these chemicals to the EU.
  • However, if we leave the EU, chemical companies from Slough could face import taxes of between 5 - 6.5% for many chemicals when they are sold in other EU countries[xvii]. This will make Slough's chemical industry far less competitive compared to German and Dutch companies. The UK will also have no influence over future revisions of the REACH directive which governs the EU chemical industry and it is likely that companies such as Sun Chemical would relocate to other EU countries to avoid the extra tariffs and other potential barriers to access. This would cause further plant closures and job losses.

European Jobs in our Area - Agriculture

  • Agriculture is hugely important in Berkshire employing 2,284 people.
  • The region's success story in agriculture is built on Britain's EU membership. In 2012, 86% of British meat exports[xviii], 70% of fish exports[xix] and 85% of cereal exports[xx] went to other EU countries and because we are a member of the European Union, our producers pay no import taxes when exporting these products.
  • However, if we leave the EU, producers in Berkshire could face EU import taxes of 12.8% & €176.8 per kg for beef[xxi], €77.8 per 100kg for hams[xxii], €30.4 per 1000 chicken eggs[xxiii] and 2% for Atlantic salmon[xxiv]. This will make products from Berkshire far less competitive and more expensive in the EU compared to Irish and French producers.

European Jobs in our Area - Plastics

  • The plastics industry is a big employer in Slough and the surrounding area, for example Sovrin Plastics which employs 160 local people. Nationally, 180,000 people are directly employed by the UK plastics industry and there are 7,500 plastics companies across the country[xxv].
  • The area's success story in plastics is built on Britain's EU membership. In 2012, 67% of UK exports of plastics went to other EU countries[xxvi] and, because we are a member of the European Union, our manufacturers export under the same rules and regulations, and pay no import taxes when exporting these plastics to the EU.
  • However, if we leave the EU, plastic companies from Slough could face import taxes of between 6.3 - 6.5% for many plastics when they are sold in other EU countries[xxvii]. This will make Slough's plastic industry far less competitive compared to German and Dutch companies. The UK will also have no influence over future revisions legislation which governs the EU plastics industry such as REACH and the classification, labelling and packaging of substances and mixtures directive and it is likely that companies such as Sovrin Plastics would relocate to other EU countries to avoid the extra tariffs and other potential barriers to access. This would cause further plant closures and job losses.

Sources:

[i] Approximately 1,400 in Windsor and 1000 in Slough

[iv]https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx - total exports of £20.93 billion. Exports to the EU - £10.35 billion.

[v] Examples are the clinical trials directive, the medicinal products for human use directive and the regulation for authoisation and supervision of medicinal products for human and veterinary use.

[vi]https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx - total UK aircraft and spacecraft exports in 2012 were £10,597,431,901. Exports to the EU were £4,468,251,217.

[xii]http://www.smmt.co.uk/wp-content/uploads/SMMT_2013_Motor_Industry_Facts_guide.pdf - page 8 - 81% of vehicles are exported, page 16 - 51% of exports went to the EU.

[xvi]https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx - total exports of UK organic and inorganic chemical exports in 2012 were 13,872,821,265. Exports to the EU were 8,151,204,290.

[xviii]https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx - total exports in 2012 were £1.37 billion. Exports to the EU were £1.18 billion.

[xix]https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx - total exports in 2012 were £1.24 billion. Exports to the EU were £869 million.

[xx]https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx - total exports in 2012 were £434 million. Exports to the EU were £369 million.

[xxvi]https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx - total exports in 2012 were £7.6 billion. Exports to the EU were £5.1 billion.

[xxviii] Windsor: 4,009 ; Slough: 10,058

[xxix] At risk job statistics can be found at europe4prosperity.com - http://www.europe4prosperity.com/jobs.htm