UK plays down Brexit concerns as Sony moves European HQ
Trade minister says country still attractive to businesses after latest Sony move
LONDON: The British government yesterday played down concerns that Brexit is scaring away businesses after Sony said it was moving its European headquarters to the Netherlands amid a political stalemate in London.
With just over two months to go until the scheduled date of Brexit on March 29 and no divorce deal in place, Britain faces the prospect of an imminent and chaotic departure from the European Union after 46 years of membership.
Interviewed by AFP at the World Economic Forum in Davos, International Trade Secretary Liam Fox said Britain remained "open for business".
Britain "is an attractive destination for foreign direct investment - and that during the time where there's been uncertainty over Brexit", Mr Fox said.
But Japanese electronics giant Sony said it was moving its headquarters' registration by the end of March to avoid Brexit-related customs issues.
Its rival Panasonic last year also moved its European headquarters from Britain to the Netherlands over concerns about potential Brexit-related tax issues.
Several other Japanese firms, including megabank MUFG, Nomura Holdings, Daiwa Securities and Sumitomo Mitsui Financial Group, have said they are planning to move their main EU bases out of London since the 2016 Brexit vote.
France, Germany, Ireland, Luxembourg and the Netherlands have all benefited from companies moving out of London, although the large impact predicted by some on Britain's financial sector has failed to materialise.
Britain has been in a state of political upheaval since last week when Parliament rejected the withdrawal deal negotiated by Prime Minister Theresa May with the EU, leaving Britain on course for a no-deal Brexit on March 29.
Brussels negotiator Michel Barnier yesterday warned the British government would still face a multi-billion euro divorce settlement with the EU under such a scenario.
Some anti-Europeans, opposed to a negotiated settlement with Brussels, balk at the idea of settling a bill that their own government estimates at £39 billion (S$69 billion) to cover outstanding obligations. But Mr Barnier, in interviews with European newspapers, said the bill would still be settled.
"For the EU budget, we've always said one simple thing: the totality of the commitments made by the United Kingdom while still an EU member will be respected," he said, according to Le Monde.
The political crisis in London comes against a backdrop of growing economic gloom, with business leaders warning politicians of the effect of Brexit uncertainty.
A Confederation of British Industry survey of manufacturing companies yesterday found that new orders flattened in the quarter to January and sentiment about the business situation and export prospects tumbled.
Business concerns are particularly high over the prospect of a no-deal Brexit, which could impose high tariffs on key exports such as food and cars.
Eight out of 10 leaders of British ports admit to having made little or no Brexit planning, according to a survey by maritime and shipping practice Odgers Berndtson. - AFP
FOR MORE, SEE: Dyson’s move to Singapore slammed
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