Yahoo Finance Mark Carney: Borders and port infrastructure 'not there' for no-deal Brexit
Britain’s borders and ports are not prepared for a no-deal Brexit, the Bank of England governor has said at the Davos summit.
Mark Carney said many logistical issues had not been solved despite the risk of Britain crashing out of the EU without a deal on 29 March.
He told an audience of global business and political leaders at the World Economic Forum (WEF) summit in Davos, Switzerland: “There are a series of logistical issues that need to be solved. It’s quite transparent that in many cases they’re not.
“So the port infrastructure is not there, the border infrastructure is not there to the extent it needs to be, in jumping from an absolutely seamless trading environment to one with frictions that aren’t just tariffs but also rules of origin, safety standards and other inspections of products that would need to be done.”
READ MORE: Carney says ‘not automatic’ how rates will change after no-deal Brexit
He said that “minutes matter” in just-in-time supply chains for sectors like the car industry, and said large businesses could not possibly build up the full inventories they might need.
“There’s a limited amount many businesses can do to prepare for substantial delays. Businesses are doing what they can, but in many cases they can’t do it.”
But he added: “Obviously these [delays] would eventually be worked out over time. ”
The comments may not be welcomed by UK government ministers charged with planning for a no-deal departure, who have already come under significant criticism for their plans.
READ MORE: Ministers insist more to UK than Brexit at Davos
Transport secretary Chris Grayling recently came under fire for hiring a ferry firm in the event of no-deal that has never run a Channel service and owns no ships.
Carney also used the event to spell out that it was “not automatic” interest rates would rise, fall or stay unchanged if Britain ended up with a hard Brexit.
He said the central bank would have to balance the risk of tariffs and a plunging pound driving up inflation with the need to support growth.
