THE Scotch whisky, textiles, engineering, manufacturing and food and drink industries have hammered home their fears over future trading arrangements, access to skilled labour and the collapse in the pound following the UK’s decision to leave the European Union.

Representatives from a wide range of sectors laid bare the economic fall-out from the Brexit vote in Scotland during a parliamentary hearing at Holyrood.

They voiced their concerns to MSPs on the Scottish Parliament’s Economy, Jobs and Fair Work Com- mittee, which was taking evidence on the economic impact of Brexit.

Bryan Buchan, chief executive of Scottish Engineering, slammed the vote to leave the EU as a “bitter blow for our sector”. He said engineering firms have been “suffering terribly from the rise in price of raw materials”, including UK steel and nickel, while not seeing any benefit from the weaker pound because the bulk of their business is carried out within the UK. And he said there are growing signs companies could be willing to “take business in the margin” - contracts that would bring in enough income to cover costs and keep volumes up while not delivering a profit.

“The brakes are on, hard, in terms of capital investment, and they are not likely to come until there is clarity [over the UK’s future trading arrangements],” Mr Buchan added.

Karen Marshall, managing director of Bridge of Weir-based Scottish Leather Group, warned the uncertainty over the UK’s future trading relationship with the EU has the potential to “undermine future investment”, and called for a “quick resolution” to the post-Brexit negotiations. Ms Marshall, whose company supplies leather to the global aviation and automotive sectors, said the vote to leave the EU puts trading relationships with customers based within the bloc at risk, declaring that they are “aghast that we have voted to come out of Europe”.

Mark Hogarth, creative director at luxury textiles company Harris Tweed Hebrides, said the Brexit vote had also shaken up the European fashion industry, noting that “95 per cent of UK textiles companies were vociferously open to Remain politics”. He declared: “To be seen to have withdrawn from Europe is to be seen to have withdrawn from the fashion industry.”

Mr Hogarth played down the argument that the plunge in sterling since the vote on June 23 would benefit exports. Although 70 per cent of Harris Tweed Hebrides’ goods are exported, he said the company trades on its reputation for luxury – not currency movements.

“We don’t trade on currency – we want longevity,” he said.

And while it has been suggested UK companies should seek to open new markets when the UK leaves the EU, Mr Hogarth emphasised that this was not an easy process.

“We managed to crack Italy – [but] it’s like the English selling wine to France,” he said. “It takes years to build up [a new market].”

Fears over a so-called “hard Brexit”, which would mean an end to the free movement from EU countries into the UK, were also highlighted to MSPs.

James Withers, chief executive of Scottish Food & Drink, cited the example of Elgin-based Walkers Shortbread, which flagged last month the key role played by its 300 overseas staff in the continuing success of the business.

Mr Withers said Scotland was facing a “perfect storm” over labour, warning it risks losing the skills of EU migrants because their earnings here are now worth less in their home countries, and because their skills are also in demand in the nations they originally came from as their economies are developed.

He challenged the UK Government to shift its attitude towards migrant workers to underline that their contribution is genuinely valued and welcomed by companies here, and criticised the prevailing message which centres on whether or not they will be allowed to stay.

Mr Buchan, meanwhile, cited the benefit brought to the Rosyth Dockyard, which is working on aircraft carriers, from the freedom of movement across the EU, in particular the influx of Polish workers.

David Williamson, public affairs director at the Scotch Whisky Association, highlighted the importance of distillers securing “pragmatic, non-disruptive transitional agreements” for the UK when it leaves the EU.

The EU is the single biggest market for Scotch whisky, accounting for one-third of exports.