Archive: May, 2016

Procurement should vote to remain

With less than a month to go to the EU referendum, most polls show that the in and out vote is split evenly with over 10% of voters undecided. Voters have been given advice from wonks, company bosses and even soldiers. So, would procurement professionals advise voter to stay or go?

There are a range of issues to consider from the cost of membership to immigration to the environment. Procurement professionals, however, are most concerned with trade and the economy.

It is worth noting that about half of UK trade is conducted with the EU. As a share of exports Britain is more dependent on the rest of the EU than they are on us. If Britain voted to leave then we would have to negotiate access to the single market.

Trade negotiations with other parts of the world are conducted by the EU, not individual member states. The EU has shown that it has the power to take on multinational organisation like Microsoft in antitrust cases.

There is little doubt that Brexit would cause an economic shock and growth would be slower. There are a range of forecasts available on the size of the shock and the impact on growth from the likes of the Treasury and the IFS. Since the assumptions vary the size of the impact also varies, however, they are consistently showing that the impact in the short to medium term would be negative.

The procurement profession should support the campaign to remain in the EU because the UK has more power as part of the EU and would avoid an economic downturn.