RiskUKDecember2017

BBC News recently
reported that the UK’s
Brexit ‘divorce bill’
payment to the EU
could be in the region
of £44 billion, but the
final settlement figure
remains unclear. At
present, there are little
or no guarantees as to
what the future holds
post-Brexit, either for
the fire industry itself
or, indeed, the UK as a
whole. Ian Moore
asserts exactly why
it’s important to
ensure that the fire
industry’s voice is
clearly heard in a
number of areas
directly affecting its
constituent members
Ian Moore: CEO of the Fire
Industry Association
The Fire Industry and Brexit:
What Does The Future Hold?
When talk turns to Brexit, immigration (of
both skilled and unskilled workers),
working relationships with European
Union (EU) members, exchange rates,
standards/certification and tariffs on imports
and exports into the EU are some of the key
areas in which the fire industry has a keen
interest and must make its feelings known.
We should determine to be positive by
looking at the new opportunities that will
continue to arise. By way of an example, I’ve
received a number of communications from
overseas Trade Associations that believe we will
now be looking for stronger relationships
outside of the EU. These relationships could
open the door to improved export prospects.
Let’s begin this examination of a post-Brexit
landscape by focusing on the immigration
issue. The fire industry is directly linked to the
construction sector, which is useful as there are
so many statistics available from this muchdiscussed
world (not least those harboured by
the Confederation of British Industry). Without
delving too deeply into the realms of politics,
we’ve needed immigrant workers on many
occasions over the years. The construction
industry requires a large number of unskilled
and semi-skilled staff as it’s so labour
intensive, but with a restriction on the free flow
of individuals from EU countries, manpower
requirements would be difficult to achieve.
We do have UK citizens that could take some
of these roles, but are they as willing or, in
some cases, skilled enough to do so? Either
way, I fully expect the construction sector will
have to pay more for its labour. As for the
skilled labour market, putting up barriers to
entry will surely deter much-needed talent.
Undoubtedly, once again the construction
industry will suffer.
Reflecting our virtues
The UK’s relationship with its EU partners has
never been great. We’ve been perceived to
stand slightly apart from the rest of the
Member States – not using the official currency
of the EuroZone is one example of this. How
often do you hear people referring to “them” as
Europe and, although we are Europeans from a
geographical standpoint, the term is rarely
used by UK citizens in a sense of ‘belonging’.
In the aftermath of the EU Referendum, we
have the opportunity to re-create our
relationship with continental Europe in a
positive way that reflects the five UK virtues of
military, diplomacy, intelligence, trading and
finance rather than focusing on a drive towards
integration (for which we will never understand
Europe’s apparent need).
Look at Norway and Switzerland. Their
relationship with EU Member States (in terms
of trade and respect, etc) appears strong. Both
sides are apparently happy with their state of
affairs. We have a lot of work to do to form or
reform that bond of mutual respect which will
hopefully lead to strong trading relationships.
One thing I would add here is that we
shouldn’t become too pessimistic about trade
with EU countries. Such trade is mutually
beneficial and has been for hundreds of years.
Can you imagine the Germans not selling us
cars or the French not offering us their wine?
Post-Brexit uncertainty
Probably the most visible indication of post-
Brexit uncertainty in the wake of June 2016’s
Referendum was the dramatic exchange rate
changes. The pound slumped to a 31-year low
following the vote. The continued slide in
sterling since then has hit us hard. In fact, only
this week some airports offered less than €1 to
the £1, in turn warning of the impending
financial squeeze on UK travellers at EU
destinations. Meals, coffees and teas and other
items are now typically at least 22% more
expensive than they were 12 months ago.
However, there has been a benefit for the
British economy, with recent official data
highlighting that retail sales leapt by 1.4% in
July following a drop in June, apparently
assisted by an influx of big-spending overseas
tourists from outside the EU domain.
How does all of this affect the fire industry?
Well, as individuals we would need to be paid
more money to afford any overseas holidays.
Companies buying systems, components or
services from overseas are paying a higher
price. In a Market Conditions Survey recently
commissioned by the Fire Industry Association
(FIA), there are clear signs of a decline in export
growth in the region of 10%. That’s an indicator
of the pressures placed on our exporters.
On a more positive note, it has perhaps never
been such a good time to be a UK
manufacturer. Look at what we have available
to us at the Manufacturing Technology Centre
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