Speaking at the confederation’s biennial conference, Mr Large warned that the UK paper industry “depends greatly on its EU supply chains of pulp and paper, capital, machinery and people”.
He explained: “The UK paper industry is strongly in favour of the phased implementation of any eventual Brexit agreement to prevent trade from falling off a cliff edge and enable business and governments to adjust to the new trade relationships.”
Workers
And, Mr Large called on government to ensure that mill workers could come to the UK – many UK mills are owned by overseas companies. “The final Brexit agreement must ensure that these supply chains remain linked and that they are not disrupted by new tariffs, non-tariff barriers related to standards or regulations or restrictions on skilled workers and those with manufacturing skills, especially those coming to the UK for short term intra-company roles.”
The CPI director general said he welcomed the commitment to transpose EU law into UK law from day one of Brexit, as a provider of legal certainty. But while he wanted to see environmental and other legislation transposed, he said he also wanted to see the “most competitive UK business environment possible within the context of continued frictionless trade with the EU”.
Accordingly, he urged the urge the government to move quickly to
reduce regulatory burdens on business, consistent with continued access to EU markets.
Energy
Mr Large also commented on energy issues which impact on the paper manufacturing sector. It has long argued that costs are too high.
The director general said: “If the Government cannot secure the competitiveness of UK energy intensive industries with domestic policy change, then calls for a border adjustment tax will only intensify – as at least that would ensure that UK producers and imported goods paid effectively the same carbon price.”
Related links
Confederation of Paper Industries
Environmental legislation needs to be transposed
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