SIR John Major has warned Nissan’s future in the North East could be put at risk if Conservative Eurosceptics take Britain out of the European Union.
The former prime minister has warned of “substantial costs” to the country if the UK were to leave the EU amid growing public frustration with Brussels.
Nissan and other firms exporting to Europe would likely face tariffs of around 10% if the UK abandoned its EU partners, putting jobs at risk, Sir John said.
David Cameron last month promised a future Conservative Government would hold an in-out referendum on European Union membership after the next General Election, with the PM saying he would renegotiate Britain’s position in the EU ahead of the vote.
In a speech, Sir John said it was right the country had its say on the issue, but warned the cost of leaving the EU would be drastic.
Citing Nissan as an example, Sir John, whose Conservative predecessor Margaret Thatcher brought Nissan to Wearside, said future investment would be difficult to attract.
Nissan’s workforce is set to reach 6,000 as it continues to be one of Europe’s most productive factories.
The Nissan supply chain has several thousand more jobs dependant upon the factory’s success, and Sunderland Council is planning to build an advanced manufacturing park near the Nissan factory.
In a Chatham House speech before some of the UK’s most influential business leaders, Sir John said: “One presumption from those who would advocate leaving the EU is that we could remain in the single market of 500 million consumers. That is (probably) true, but there would be a price. Norway, as a non-member, pays two thirds as much per head for access to the single market as the UK.
“As a non-member we would have to negotiate our own free trade agreements. At worst, this could take years. At best we might be able to piggy-back on existing EU agreements. Either way, we will face tariffs.
“An example: at present we export five out of every six cars made in the UK. As a non-member we might have to pay a 10% tariff on exports to the EU and a 5% tariff on components.
“Would Nissan, I wonder, and BMW Honda, Toyota and Ford continue to build at Sunderland, Swindon, Dagenham, Bridgend or Oxford? Many livelihoods depend upon that answer.”
He later added: “Whether we like it or not, there are lots of people out there who think the Europe we’re in is not the Europe we were promised and not the Europe we joined.”
The task facing pro-European MPs and businesses now, Sir John said, was to convince voters of the merits of staying in a Europe with which the UK has a new relationship.
As a timely reminder of Nissan’s importance to the region, the firm revealed in December that it would create 280 jobs and a further 720 in component companies to manufacture a new luxury car under the Infiniti brand.
It was the first time in nearly a quarter of a century that a new car brand was launched in the UK, and sees Nissan’s Wearside operation reach a record output of 500,000 vehicles a year.
Last night senior Liberal Democrat MEP Fiona Hall said it was clear an EU exit would pose a jobs threat.
The North East MEP said: “Certainly for Nissan, Hitachi and other foreign companies investing in the North East, unfettered access to the European market was a key factor in their decision to come to the region.
“And there is no doubt that an EU exit would cause widespread economic damage and job losses, particularly in the manufacturing and chemical industries. As many as 140,000 jobs in the North East are dependent on our membership of the single market.”
Nissan did not comment on the speech.
