Supply chain disruption is due to fundamental global pressures, says Paymaster General

During his keynote speech at Logistics UK’s Brexit Conference 2021 – Brexit ten months on – Get ready for the next stage, Ellis said that fundamental global pressures, including a surge in demand for natural gas as national economies recover from the pandemic and a global shortage of HGV drivers, were testing supply chains to the limit.

The minister also outlined the steps government has already taken to ease the pressure on supply chains in the pre-Christmas period: “We’ve taken short-term measures specifically to boost HGV driver capacity: temporary visas, increased testing capacity, relaxed rules on cabotage,” he said, “They are a sign of the seriousness with which the government has addressed the concerns of this crucial sector.”

The long-term solution, Ellis argued, was to build up the resilience of supply chains to global shocks. “The recent decision by the Prime Minister to set up the Supply Chain Advisory Group and to bring in the former Tesco Chief Executive Sir Dave Lewis to run it are statements of intent,” he said, “They show how determined we are to work with leading private sector experts to find the solutions we need, in this case, to strengthen national resilience, and I welcome the engagement of Logistics UK in this project.”

On Northern Ireland, the minister maintained that the Northern Ireland Protocol was not working in its current form. “The EU’s implementation of the Protocol has moved barriers to the movement of goods from Great Britain to Northern Ireland,” he said, “Barriers that were unexpected and are unnecessary. We have, therefore, put forward a detailed proposal for a change to the Protocol and we are now engaged in intense technical discussion with the EU.”

Touching on the French fisheries licence issue, he said that while the UK would remind the French Government of its obligations in international law to keep trade flowing, it would not be “drawn into matching some of the intemperate language coming out of Paris”, but would seek to lower the political temperature between the two countries.

Ellis concluded his speech by underlining the crucial role logistics has to play in the UK economy. “Members of Logistics UK are vital for the infrastructure of the country to function and that’s crucial to our daily life,” he said, “And on the opportunities and the challenges ahead I very much look forward to working with you all.”

*www.logistics.org.uk/brexit    

Published On: 11/11/2021 16:00:48

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