Government report shows why no deal is not an option for logistics, says FTA
Wednesday 10 July 2019
The publication of today’s (10 July 2019) data paper on Northern Ireland’s trade and investment prospects after a No Deal Brexit shows how unacceptable an outcome that could be for the country’s logistics businesses, according to FTA, the business organisation representing the sector.
Produced by the Northern Ireland Civil Service (NICS), the paper draws together statistics and economic data from a wide variety of official sources and concludes that the effects of a No Deal exit from the European Union could have a catastrophic effect on Northern Ireland’s business community, and the logistics industry in particular.
“Today’s report reiterates what FTA has been warning for months, that a No Deal Brexit could be a disaster for Northern Ireland’s logistics industry, and for the nation’s wider business community as a whole,” says Seamus Leheny, FTA’s Policy Manager for Northern Ireland. “Northern Ireland’s businesses rely on free access to customers in both the UK and EU, which would be severely curtailed by a No Deal Brexit, and the resulting delays, costs and disruption would render the nation’s businesses less competitive to customers.”
The NICS report estimates that the increased restrictions on trade posed by a No Deal Brexit could result in an economic contraction of £120m per year. And as Leheny continues, the report shows how the imposition of EU tariffs and non-tariff barriers would severely restrict NI’s continued export market to Ireland for a wide range of goods and services – NICS estimates the reduction in trade as a result of a No Deal departure could reduce NI’s exports to the South by between £100m and £180m a year.
“With more than 4.8 million freight vehicle movements across the Irish border alone every year, a No Deal outcome to Brexit could have a devastating impact on the trading environment and, in turn, the logistics sector in Northern Ireland, and further afield. Our supply chains are complex and interdependent and support every level of the country’s economy, from food production and industrial manufacturing to the supply of medicines. The checks which could be implemented on goods arriving or departing in NI would be hugely disruptive to both businesses awaiting deliveries and to the end users, who will face delays, disruption and rising costs.
“Agri-food products such as raw food ingredients could be subject to checks at the border, yet there is still no agreement on what form these checks would take, how and most importantly where they would be made. Northern Ireland has always relied on trade to keep its economy buoyant yet the NICS report makes it clear that a No Deal Brexit would cause economic contraction and a loss of confidence both domestically and from overseas customers.”
Efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. A champion and challenger, FTA speaks to Government with one voice on behalf of the whole sector, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers.