Continued access to tariff-free trade after Brexit was crucial, Walker said. But, it was “naïve” to believe that would happen if the government insisted on migrant worker contracts, he added.
“It’s vital that we have continued access to EU markets, ideally through our participation in the Single Market,” Walker said, speaking at the Food & Drink Exporters Association’s Network Forum on December 14.
“But the government’s insistence on controlling immigration to the UK from Europe means this is unlikely to happen.”
A substantial effect
The effect on UK food and drink manufacturing sales was difficult to predict after parting ways with our largest trading partner, said Walker. But, he was sure that Brexit would have a big negative effect on all businesses – food exporters in particular.
“It’s naïve to expect a friendly exit and get everything we wish for in the negotiations. These will be highly political negotiations for Europe, but for the UK it’s a commercial negotiation,” Walker said.
“Nobody can expect European leaders to be sympathetic to the challenges that [Prime Minister] Theresa May faces in the UK.”
Continued access to non-UK EU workers was also vital to food and drink manufacturers, he said. Scotland was more at risk than the rest of the UK if these workers weren’t allowed to stay in the country, he added.
Walker said Scotland’s shortage of workers, combined with the introduction of the National Living Wage in April, would put the country’s food sector under pressure.
‘More at risk’
“Scotland is more at risk than the rest of the UK because of the relatively small population in the rural places that food is produced. In many of these areas, the unemployment is virtually at zero, and the food industry is heavily reliant on [non-UK EU workers] for labour.”
Scotland-based Walkers Shortbread always had challenges recruiting staff, Walker said. Before freedom of movement came into effect in 2004, the manufacturer found it “almost impossible” to attract workers from other regions of the UK.
Walkers Shortbread has been manufacturing shortbread biscuits since 1898. It now also makes biscuits, cakes and tarts as well as shortbread.
Scotland at particular Brexit risk
- Walkers Shortbread md James Walker said: “Scotland is more at risk than the rest of the UK because of the relatively small population in the rural places that food is produced. In many of these areas, the unemployment is virtually at zero, and the food industry is heavily reliant on [non-UK EU workers] for labour.”