Rolls-Royce warns about Brexit uncertainty, again, and about supply pressures
17 July 2018 - 17:02
byAgency Staff
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
PR agent Elsa Goette sits in a Rolls-Royce engine of an Airbus A350-900 of Ethiopian Airlines during a site-inspection at Fraport airport in Frankfurt, Germany, in this May 22 2017 file photo. Picture: REUTERS/KAI PFAFFENBACH
Farnborough — The CEO of British aircraft-engine maker Rolls-Royce Holdings warned on Tuesday that the government’s new Brexit blueprint failed to dispel uncertainty and cautioned about supply pressures.
The government published proposals last week to facilitate post-Brexit trade in goods with the EU, but gave scant detail about the future of services.
"We can’t rely on anything. So the white paper ... was incrementally positive in terms of the content," said Rolls-Royce CEO Warren East at a round-table event on the sidelines of Farnborough Airshow. "But it still leaves loads of unknowns. And we’ve got a business to run. So, yes we are taking contingency measures and we are going to continue taking those contingency measures. As it happens — look what happened yesterday. It got incrementally worse again."
Prime Minister Theresa May avoided defeat in a vote on customs legislation on Monday but only after bowing to pressure from hardline euro-sceptics in her ruling Conservative Party.
East, meanwhile, cited the example of European aircraft maker Airbus, which has already warned about post-Brexit uncertainty on its operations. The European group, which directly employs nearly 15,000 people in Britain, has already warned that crashing out of the bloc with no deal would be "catastrophic" and force it to consider its investments.
"Airbus talked a little while ago ... about how catastrophic it would be with friction at the border," East added on Tuesday. "We have exactly the same problem. Even if it’s tariff free, then something gets delayed." He added: "Unfortunately, the whole supply chain has been sort of squeezed like that. "It’s not quite as bad as for supermarkets and food, but it is getting [close to] it."
Questioned by reporters, he replied that the group was not yet stockpiling parts, but might have to. "There’s no point in stockpiling before you have to because it costs money. But we might have to." He added he was "frustrated" by the confusion over Britain’s departure from the EU.
"It’s time to start being a bit constructive about negotiating, and that’s on both sides of the fence. It was frustrating that ... having talked about how incrementally positive [the white paper] was, at least half of it was undone."
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Rolls-Royce warns about Brexit uncertainty, again, and about supply pressures
Farnborough — The CEO of British aircraft-engine maker Rolls-Royce Holdings warned on Tuesday that the government’s new Brexit blueprint failed to dispel uncertainty and cautioned about supply pressures.
The government published proposals last week to facilitate post-Brexit trade in goods with the EU, but gave scant detail about the future of services.
"We can’t rely on anything. So the white paper ... was incrementally positive in terms of the content," said Rolls-Royce CEO Warren East at a round-table event on the sidelines of Farnborough Airshow. "But it still leaves loads of unknowns. And we’ve got a business to run. So, yes we are taking contingency measures and we are going to continue taking those contingency measures. As it happens — look what happened yesterday. It got incrementally worse again."
Prime Minister Theresa May avoided defeat in a vote on customs legislation on Monday but only after bowing to pressure from hardline euro-sceptics in her ruling Conservative Party.
Seven highlights from the Farnborough Air Show
East, meanwhile, cited the example of European aircraft maker Airbus, which has already warned about post-Brexit uncertainty on its operations. The European group, which directly employs nearly 15,000 people in Britain, has already warned that crashing out of the bloc with no deal would be "catastrophic" and force it to consider its investments.
"Airbus talked a little while ago ... about how catastrophic it would be with friction at the border," East added on Tuesday. "We have exactly the same problem. Even if it’s tariff free, then something gets delayed." He added: "Unfortunately, the whole supply chain has been sort of squeezed like that. "It’s not quite as bad as for supermarkets and food, but it is getting [close to] it."
Questioned by reporters, he replied that the group was not yet stockpiling parts, but might have to. "There’s no point in stockpiling before you have to because it costs money. But we might have to." He added he was "frustrated" by the confusion over Britain’s departure from the EU.
"It’s time to start being a bit constructive about negotiating, and that’s on both sides of the fence. It was frustrating that ... having talked about how incrementally positive [the white paper] was, at least half of it was undone."
AFP
Britain seeks to allay Brexit fears at Farnborough air show
Worries over Brexit and a trade war seemingly not affecting demand for jets
Ethiopian Airlines ditches plan for smaller jets as long-haul flights gain
Airbus close to landing deal for 100 aircraft with AirAsia
US push for new global jet standards runs into Europe flak
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
NEWS ANALYSIS: Brexit rivals unite over their hatred for May’s plan
Former minister calls for second Brexit vote to end stalemate
Worries over Brexit and a trade war seemingly not affecting demand for jets
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.