At today’s SMMT International Automotive Summit, Business Minister Michael Fallon has again called for a reform of the way in which the European Union (EU) legislates for automotive and other manufacturing industries. This came in a speech he delivered about the impressive growth that the UK motor industry has shown internationally in recent years.
During a presentation at the Summit, Mr Fallon expressed a desire for UK government to work with the EU to form a “more outward looking approach” to industry legislation. He suggested that one way to do this is to reform the single market, which he criticised for being incompatible with many sectors, such as new technology and energy. He also said that it is the duty of “federally-minded” states to refrain from legislating at the expense of smaller countries or those outside the eurozone.
Mr Fallon stated that better regulation is key to economic growth, and suggested that cutting EU red tape was of primary importance. He also explained that by focusing on free trade agreements with countries such as the United States, European states that are currently experiencing a weak economy would benefit.
Michael Fallon said, “An EU-US free trade agreement is a great priority for government and is something that will bring major benefits. It is vital that we are ambitious in the agreement; we have been impressed with the level of involvement that the automotive industry has had in this process so far and welcome any further activity.”
Mr Fallon also announced the introduction of the Automotive Investment Organisation (AIO), which will use funding of £3 million over two years to spearhead a campaign to attract further inward investment to the UK. The AIO will be led by former CEO of Ford of Britain, Joe Greenwell and will take strategic direction from the Automotive Council, to develop a strategy to repatriate the supply chain and build on the opportunities identified in the UK.
Click through to download the full speech from Michael Fallon MP.
