1. Background

 Wales For Europe was established in the wake of the 2016 referendum to argue              for the closest possible continuing relationship between the UK and the EU.            Although we are legally constituted as an offshoot of Open Britain, we are             operationally independent, and have an executive committee in Wales. Helen          Birtwhistle is Wales For Europe’s part-time Director. The executive committee is           chaired by Geraint Talfan Davies. 

 Wales For Europe has established local support groups in Cardiff, Swansea and            Newport, Rhondda Cynon Taf, Powys and north Wales. We collaborate with           several other pro-EU organisations. Our activities include an extensive social          media presence, regular street activities in major centres and, currently, a lecture            series presented with the cooperation of the Wales Governance Centre at Cardiff            University. 

 

2. Recent developments

Over the last year we have viewed with mounting concern   a. the UK Government’s failure to establish a coherent post-Brexit vision, other than to rule out remaining part of the European single market and customs union.

 b. the growing evidence of the likely negative effects of Brexit, especially on            crucial sectors of the Welsh economy

 c. the lack of any attempt by the UK Government to forge a common view with               the Welsh and Scottish Governments

 d. the lack of realism inherent in the timescales for concluding a framework            agreement (by October this year) and for concluding detailed agreements on           all outstanding matters (by December 2020)

 e. the lack of any bankable assurances by the UK Government that the  repatriation of powers will not be at the expense of the devolution            settlements.

 

3. The risk register

 In January 2017 the EAAL Committee published a top line appraisal of the             implications of Brexit for Wales. In the year that has elapsed since that report,              evidence of the likely negative effects has increased.

Report after report, whether by independent think tanks or by the civil service,             have foreseen impacts of varying severity. Not a single report has pointed to a              positive effect under any of the conceivable scenarios, including the work of            Professor Patrick Minford, a highly theoretical outlier on this issue. He has stated             that he is quite relaxed about the possibility of Brexit heralding the end of              manufacturing in Britain. This means that, even while arguing that there would            be positive long-term benefits, even he envisages the wiping out of a sector that              represents 16% of Welsh GVA – 6.3 percentage points more than in England. 

 It is clear, beyond peradventure, that Wales faces disproportionate risks,          compared with other countries of the UK not only in manufacturing, but also in              agriculture whose share of total employment in Wales is nearly twice that in             Scotland and nearly four time times that in England. 

 These facts were emphasised in the EAALC’s 2017 report, however, there has            been no open and public recognition by the UK Government of the dangers that              risks on this scale – short or long term - pose for Wales. After a partial leak MPs                  have been allowed to view an analysis in secret. This is wholly unsatisfactory.             Such information should not be withheld from the public – or the Welsh             Government - on the spurious grounds that it would harm the UK Government’s             negotiating position. This would be so only if the facts were not known by the               other EU countries. That is not the case.

 We also regret the fact that the UK government has not published detailed             impact studies for each of the nations and regions of the UK. We note that the                Scottish and Welsh Governments have published impact studies of their own.           However, although we commend the increasing cooperation between the two          devolved governments, we regret that they could not have collaborated more           closely to produce an economic impact study prepared via the same           methodology, so that the results for each country could have been directly            comparable. 

 We would also have welcomed a more detailed risk register for each sector, also              listing possible mitigating actions, for every sector of the Welsh economy, as well             as for the public purse and, by extension, for public services. We believe this              work is urgently needed, not only to inform the Welsh and UK Governments but              also for communication widely throughout Wales before any ‘meaningful vote’ is           taken by Parliament. 

 The Prime Minister has made it clear that she does not want the UK to remain in                 the single market or customs union. This statement increases the risks to the             economy, particularly here in Wales, very sharply. It also flies in the face of the               wishes of the Welsh and Scottish Governments. Given the well-known defects of            indigenous media in Wales, we believe there is an urgent need for an             intensive Welsh Government-led communication programme, to bring home the facts to the Welsh people. This is a democratic necessity.

 

4. Non-trade risks

 The risks to our society are not restricted to our trade with Europe. Our belief is                that theriskstoourtrade–alreadytraditionallyinsignificantdeficit-willhavea                negative impact on the UK’s public finances. Without a radical change this would             be likely to have further catastrophic consequences for public services. Wales is            already less well-placed in terms of public funding than Scotland and Northern            Ireland, anddemographicchangesinthenext10yearswilladdtothestraineven               at current public spending levels. 

 We also note that immigration into Wales from the EU has been highly beneficial              for our public services, and particularly for education. The government should           take imaginative steps to emphasise our appreciation as a nation for everything            these people have contributed and are contributing to our society. 

 

5. The UK Government and devolved administrations

 Although there have been regular contacts between the UK Government and the            devolved administrations, we see little evidence that these have gone beyond           perfunctory engagement. There is no evidence at all that these contacts have            impacted on the positions that the UK Government is taking. It would be entirely              unacceptable for this situation to continue during the detailed negotiations that           will take place during a ‘transition period’. The role of the devolved            administrations in both the formulation of UK’s objectives, and in the actual            negotiations themselves should be agreed and openly specified as soon as           possible, and before any framework deal is concluded. There is no reason            whatsoever why the involvement of the devolved administrations in the detailed           negotiationsshouldbeanylessthanhasbeencustomaryduringourmembership            of the EU. 

 We would also wish to see much clearer evidence that the UK Government, as              well as both major UK parties, intend to continue to develop the form and              practice of devolution, when or if we leave the European Union.