THE chief executive of Carr's Group, Tim Davies, is warning that a vote to leave the EU would harm the company, and Cumbria's farming and agri-business sector in general.

The Carlisle-based agriculture, food and engineering group is one of the only three stock market-listed companies based in the county.

Mr Davies was questioned on the issue of Brexit – a British exit from the EU – at its annual general meeting in Carlisle last week.

He told The Cumberland News afterwards: “The reality is that if we left the EU the current support we get for agriculture via the EU would come under scrutiny and under question.

"I can't emphasise enough how important these subsidies are to farmers. Brexit would put a huge number of our customers under pressure.”

Prime Minister David Cameron is lobbying other EU leaders to support his proposed reforms ahead of an referendum on the UK's membership.

The 'Vote Leave' campaign argues that, as the UK is a net contributor to the EU budget, there is no reason why Brexit should mean lower subsidies for farmers.

Mr Davies is not convinced. He said: “It's possible that the British government would replace the existing structures with exactly the same or something better, but I think that's unlikely.”

Mr Cameron has promised to hold the referendum by the end of 2017, although he has hinted that it will come this year.

Mr Davies is keen for it be held sooner rather than later.

He added: “In the run up to the Scottish independence referendum [in 2014], everybody was thinking it was going to be a 'no' vote.

“As soon as the polls changed in the last two or three weeks, it brought in risk and uncertainty because the result was in doubt.

"If that had dragged on it would have been more damaging, and the same applies to the EU referendum.

“We don't want another 12 or 18 months of uncertainty. For business the worst thing is uncertainty.

“We need the Prime Minister to come back with a clear message as to what has been negotiated. We don't want a fudge.”

Carr's Group has more than 50 UK sites, a robotics business in Germany and animal-feed plants in the US.

The Cumbrian operations include Silloth flour mill, the Carrs Billington agricultural machinery dealerships and country retail stores, and Bendalls Engineering in Carlisle.

Mr Davies's worries over Brexit are confined to its agricultural interests. 

The  food division operates only within the UK while engineering has a global outlook and, in any case, its robotics business Wälischmiller would remain inside the EU.

His concerns over the timing of the referendum are shared by the new director-general of the CBI, Carolyn Fairbairn.

She believes that uncertainty surrounding the in/out vote is having a negative effect on British firms.

She said: “I think the uncertainty is playing into business decisions. We’re beginning to hear of business investment that’s slowing down.”

The CBI is arguing for the UK to stay in the UK but one of Ms Fairbairn's predecessors, Lord Digby Jones, who was director-general from 2000 to 2006, is relaxed about the prospect of Brexit.

Speaking on a visit to Carlisle last year, he said: “Jobs would be safe. If we voted to leave [the EU] there would be a free-trade agreement with Germany in the morning.

"It would be in Germany’s interest. They sell 1m cars a year into Britain.” 

He added: "What we need is a reformed Europe. If we had that, I would put a cross in the ballot box to stay in. It’s not in Britain’s interest to stay in an unreformed Europe.”