Europe debate ‘could harm our economy’

THE regional chairman of the Confederation of British Industry has voiced fears that Yorkshire’s economy could be damaged by politicians hijacking the debate about Britain’s future in Europe.
John FitzgeraldJohn Fitzgerald
John Fitzgerald

John Fitzgerald, a senior director at Associated British Ports, told the Yorkshire Post that UK businesses could be marginalised.

He said European investors like Siemens, which is in long-running talks about opening a new factory in Hull, want to see a Britain that looks out to Europe and the rest of the world, rather than an inward-looking nation that wants to be on the fringe.

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Prime Minister David Cameron said last month that he was in favour of a reformed EU which was more open, more flexible and better for the UK. He said he would focus on reforming the EU before holding an in/out referendum on membership in 2017, if he was still PM.

Speaking after a dinner with Yorkshire media, Mr Fitzgerald said: “We are in a trading business and Europe is such an important market for us.

“Not everything is right with the relationship with Europe, we perfectly understand that, I just think all the political tussles that have gone on present a very inward-looking UK.

“For business people, that’s a diversion from actually getting out there and developing trade with our biggest market.”

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He said Britain must champion reforms and focus on how to get the most value out of Europe in a way that is best for British business.

He added: “It’s such an important part of our economic growth agenda. We do need to export to countries outside of Europe, but half goes to Europe. It’s a massive market.”

Mr Fitzgerald, who is port director at Grimsby and Immingham, highlighted the importance of trade with Europe to the economy of Yorkshire and the Humber.

The Humber is the busiest trade estuary in Britain and a significant part of that trade is with Europe, he said.

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It would spell “bad news” for the region if that trade was threatened, he warned.

He singled out Britain’s improving trade links with Germany for future growth potential.

ABP imports BMW and recently built a new terminal following a long-term deal with Volkswagen Group.

The Humber economy helps support the Yorkshire economy, added Mr Fitzgerald, who said the CBI will be lobbying hard for Britain to keep its place in the European Union.

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“I passionately believe that our future is working within Europe,” he said. “It concerns me how this agenda has been hijacked by political influences.”

The future of Europe shot up the political agenda last month after UKIP recorded its strongest ever gains in local elections and former Chancellor Nigel Lawson called for Britain to leave the EU.

Meanwhile, the eurozone remains mired in the longest recession since its creation in 1999 and yesterday new data confirmed that unemployment in the 17-nation currency bloc has reached a new high.

The European Commission told governments this week they must focus on reforms to outdated labour and pension systems to regain Europe’s lost business dynamism, a move to shift focus away from debilitating budget cuts towards growth.

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On the question of growth, Mr Fitzgerald said the renewables industry is already having a positive effect on the regional economy.

He said Grimsby is being transformed by business investment in operations and maintenance to service wind turbine farms at sea.

He said the town’s two hotels are full and taxi drivers are talking about how busy they are.

Mr Fitzgerald said Grimsby could benefit from the energy sector in the same way as Aberdeen and Great Yarmouth, which are both reaping rewards from energy investors.

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At Immingham, ABP is developing £100m facilities to handle biomass imports for Drax.

Over in Hull, ABP has planning consent to develop the Green Port project and is hopeful that Siemens will develop a wind turbine factory to anchor the scheme.

Britain is a global leader in offshore wind power, with more installed power than any other nation.

The Crown Estate aims to deliver 25gw of capacity, either installed or under construction, by 2020 as part of Government plans to cut harmful carbon emissions.

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Mr Fitzgerald said huge amounts of steel will be needed to supply infrastructure and components for the growth industry.

He said Tata Steel’s plants at Scunthorpe and Hartlepool could play a significant role as suppliers.

“The offshore wind industry is predominantly about steel wind turbines and as the supply chain grows to support the manufacture and assembly that we hope will come to the Humber... supply chains look to shorter supply routes,” he added.

“We expect that there’s a million tonnes of steel required.

“Whilst companies in the offshore wind industry are global players and have global sourcing, we have a steel mill that can provide exactly the right type of steel.

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“As much as possible we want these initiatives to be locally based. It’s a huge opportunity.”

Mr Fitzgerald said industry leaders and the Government are working hard to create an attractive environment for overseas investors on the Humber.