London: Treasurer Scott Morrison is urging the Australian business community in London to adopt "strategic patience" as they wait to find out whether Britain will still enjoy special passporting rights into the EU after Brexit.
The issue is key for Australian providers of financial services into the Eurozone as the passporting system allows businesses to operate in participating countries without needing permission from each individual country.
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Theresa May Brexit speech reveals UK will leave single market
Britain will leave the European Union single market, Prime Minister Theresa May announced in a wide-ranging Brexit speech.
Key countries include: Germany, Denmark, Norway, Netherlands, France, Italy, Spain, Sweden, Finland and Denmark.
Treasurer Scott Morrison raised the issue with his British counterpart Philip Hammond during talks at 11 Downing Street this week.
Speaking to Bloomberg a short time later, the Treasurer advocated patience.
"We're very much proponents of strategic patience while these arrangements get finalised."
"They are incredibly detailed and complex issues around transitions and on settlement of the euro and issues around passporting for financial institutions here in the U.K."
"It's in everybody's interests that all of these things get sorted out in a very pragmatic and patient way."
The Treasurer will reiterate these comments at a G20 meeting underway in Frankfurt, Germany. He is due to meet Australian business leaders at a breakfast in Marylebone on Friday morning before returning to Australia.
Chancellor of the Exchequer Philip Hammond and Treasurer Scott Morrison at 11 Downing Street. Photo: Supplied
"Hard Brexit will rip Britain apart"
Those who advocated in favour of Britain staying inside the European Union, including the OECD, argued that leaving would put Britain's passporting rights at risk.
British Prime Minister Theresa May delivers her keynote speech on Brexit at Lancaster House. Photo: WPA Pool
These fears have been further heightened by Theresa May's recent speech in which the British Prime Minister ruled out "partial membership of the European Union," or "anything that leaves us half-in, half-out."
"We do not seek membership of the single market. Instead we seek the greatest possible access to it through a new, comprehensive, bold and ambitious free trade agreement," the prime minister said.
London mayor, Sadiq Khan. Photo: Getty Images
The Labour London Mayor Sadiq Khan says the so-called "Hard Brexit" option would "cut Europe off from its only truly global financial center."
"Nobody should assume that we would see financial institutions and transactions move from London to Paris, Frankfurt or Madrid," the Mayor said in a recent speech in Davos.
"Business leaders are clear that we could see business leaving Europe and going to New York, Singapore and Hong Kong instead."
"Securing privileged access to the single market must be the top priority for the negotiations. It's critical for London. Nothing else will do," he said.
"A hard-line approach to Brexit could rip Britain apart," the mayor warned.