Extend Brexit transition to protect Moray jobs, says Lochhead
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MORAY's MSP has called on the UK Government to extend the Brexit transition period in light of coronavirus.
As a Scottish Government study shows that billions could be wiped from the Scottish economy, SNP MSP Richard Lochhead says the UK Government must do the "sensible" thing to extend the transition as Moray businesses can't be expected to properly prepare for Brexit amid a pandemic.
The transition arrangements currently keep the UK close to the EU and can be extended for two years – beyond December 31 – if the UK Government asks for an extension by the end of this month.
The study says if an extension is not agreed, Scottish GDP could be up to 1.1% lower after two years. It claims the cumulative loss of economic activity from leaving the EU would be up to £3 billion over those two years – on top of the devastating effects of the coronavirus outbreak.
The paper indicates there will be further major costs from Brexit for years to come and also highlights that without an extension or having a free trade deal in place, Scotland’s agriculture, fisheries and manufacturing sectors will be especially badly hit.
Mr Lochhead said these sectors were essential to Moray and the local economy would therefore be among the worst hit.
He added: "Coronavirus is causing enormous economic disruption and people across Moray expect government to be focused on protecting public health and the Scottish economy.
"It would be an act of extraordinary recklessness for the UK Government to allow us to crash out of the transition period at the end of this year.
"Regardless of your opinion on Brexit or independence, it makes no sense to crash out of the European single market at precisely the moment we need stability.
"Businesses in Moray are focused on securing their future – they simply don’t have the capacity to prepare for Brexit on top of a pandemic."
He added: "The current deadline for the transition period combined with the UK Government’s dogmatic approach means the prospect of a no-deal scenario is very real and we know from all the economic analysis that crashing out without a deal would be a hammer blow for Moray’s export-oriented economy.
"UK ministers must do the sensible thing – they need to extend the transition period and protect jobs in Moray."
