Green MEP Molly Scott Cato is challenging the government over plans to shield selective corporate sectors from the impact of Brexit. Scott Cato, Green Party economics and EU relations speaker, is making the challenge in the wake of a meeting last Friday between Theresa May and Carlos Ghosn, Nissan’s chief executive. Following the meeting, the government indicated it would offer compensation for any tariffs imposed on businesses if the UK were to leave the European single market [1]. Molly Scott Cato said:
“This reinforces the absurdity of the hard Brexit route – the government effectively paying corporations to keep jobs they maintain for free as part of the single market. This also raises some very important questions to which we must have answers. Has the government costed this policy? Will it apply to all car manufacturers? Will such support just be targeted at foreign and multinational corporations? What about the thousands of small and medium sized enterprises who will also be detrimentally impacted by the UK leaving the single market? There is also a question of legitimacy: will such subsidies be allowed by the WTO if we go for hard Brexit?”
Dr Scott Cato went on to say that such a policy could be highly divisive:
“Using British taxpayer’s money to bail out foreign-owned corporations operating in areas where a large majority voted to leave the EU, such as in Sunderland, could be seen as rewarding people who voted for Brexit. And if the government decides which sectors to pick off for support, many businesses and workers will be left feeling cold-shouldered.
“It is clear that the most inclusive, unifying and economically sensible policy would be to remain in the single market.”
[1] https://www.ft.com/content/68c12fbe-920e-11e6-8df8-d3778b55a923