UK food and drink industry warns Boris Johnson that companies plan to pull out of Northern Ireland over Brexit
EXCLUSIVE: The leaders of 40 food and drink associations have warned Prime Minister Boris Johnson that companies are planning to pull out of Northern Ireland.
The anticipated cost of post-Brexit trade across the Irish Sea "means it will no longer be practical" for British businesses to continue serving Northern Irish customers, the letter seen by Business Insider says.
The letter, addressed to the senior UK ministers Michael Gove and George Eustice, urged them to minimize new checks on goods going from Great Britain to Northern Ireland next year.
Businesses are still waiting for details of how trade across the Irish Sea will work with just over two months until the end of the Brexit transition period.
The leaders of 40 UK food and drink industry bodies have written to Prime Minister Boris Johnson's government warning that many of companies they represent might pull out from Northern Ireland because of increased trading costs caused by Britain's exit from European Union trading rules.
The letter, which was sent to Environment Secretary George Eustice and Michael Gove, the chancellor of the Duchy of Lancaster, on Monday, said "the added cost, complexity and trade friction this inevitably creates means it will no longer be practical for many of our businesses to supply goods from Great Britain for sale in the Northern Ireland market."
In the letter, seen by Business Insider, the industry leaders said they were concerned that several issues facing trade between Great Britain and Northern Ireland at the end of the Brexit transition period in just over two months had not been addressed.
As of January 1, Northern Ireland is expected to continue to follow EU trading rules to avoid a hard border with the Republic of Ireland, meaning there will be new checks on goods crossing the Irish Sea.
The letter to Gove and Eustice warned that the industry was still waiting for the government to say how it would resolve numerous issues affecting thousands of food and drink companies in Great Britain that sell food to Northern Ireland.
These included uncertainty over what labels British exporters to Northern Ireland would have to use starting in January, a national shortage of pallets that would be compliant with international law, and the costly new requirements for moving animal and plant products across the Irish Sea.
The letter said that while Johnson's government had indicated it was seeking to waive checks on animal and plant products, its plans appeared to cover only major retailers and would not protect small to medium-size companies. An Export Health Certificate is required for individual types of animal goods and costs £200.
Suppliers to Northern Ireland that export animal and plant goods in large quantities face having to pay thousands of pounds on certification. "Lorries and containers used by suppliers will carry mixed consignments, often made up of hundreds of products, each requiring different documentation and subject to checks and inspections," the letter said.
The 39 industry leaders — representing 40 groups — warned Gove and Eustice that unless these new checks and costs were minimized in negotiations with the EU, many businesses in Great Britain would decide to simply stop selling goods to Northern Ireland.
"Producers are now preparing for this worst-case scenario and many are planning to stop supplying the Northern Ireland market after 1 January 2021 while they assess if it remains a viable option for their business," the letter said.
It said "solutions are needed from Government to avoid this disastrous outcome" and urged the UK government to negotiate with the EU exemptions that would reduce the burden on smaller companies in particular.
The Northern Ireland Retail Consortium's Aodhan Connolly echoed the letter's signatories, telling Business Insider: "The removal of the need for SPS checks and costly Export Health Certificates have been at the top of our list of mitigations required and we have asked for that mitigation."
The letter comes amid growing concern in the business world that the government has not provided businesses with enough details for them to prepare for life outside the EU's single market and customs union next year.
Gove and Johnson on Tuesday held a phone call with senior business leaders in which they urged them to step up preparations for life outside the EU. The government this week escalated its Brexit communications campaign by urging companies to prepare for January 1 with the slogan "Time Is Running Out."
One figure who was on the call, however, said it was a "real disappointment" and accused Johnson in particular of not being able to provide the technical details that they were looking for.
"The prime minister didn't appear to be remotely aware that the key gap to preparedness is the lack of detail on dozens of important technical issues," the person told Business Insider.
"Michael Gove was much more on the ball but could offer no certainty on how things would play out with or without a deal. It felt like the call was timed to allow Government to start shifting the blame for any chaos which might ensue."
Business Insider has asked the UK government for comment.
The 40 trade groups that have signed the letter
Ian Wright CBE Chief Executive, Food and Drink Federation
David Thomson Chief Executive, Food and Drink Federation Scotland
Pete Robertson Director, Food and Drink Federation Cymru
Richard Hands Chief Executive, Alliance for Beverage Cartons and the Environment UK
Rodney Steel Chief Executive, Association for Contract Manufacturing, Packing, Fulfilment & Logistics
James Lowman Chief Executive, Association of Convenience Stores
David Camp Chief Executive, Association of Labour Providers
Jon Clark General Manager, BPIF Cartons
Emma McClarkin Chief Executive, British Beer and Pub Association
Paul Rooke Executive Director, British Coffee Association
Walter Anzer MBE Director General, British Food Importers & Distributors Association and the Vinegar Brewers Federation
Richard Harrow Chief Executive, British Frozen Food Federation
Nick Allen Chief Executive, British Meat Processors Association
Philip Law Director General, British Plastics Federation
Richard Griffiths Chief Executive, British Poultry Council
Charles Jarrold Chief Executive, British Printing Industries Federation
Gavin Partington Director General, British Soft Drinks Association
Declan O'Brien Director General, British Specialist Nutrition Association
Shane Brennan Chief Executive, Cold Chain Federation
Parminder Kaur Chair, Council for Responsible Nutrition UK
Debbie Waldron-Hoines Director, European Flexographic Industry Association
Gordon Polson Chief Executive, Federation of Bakers
James Bielby Chief Executive, Federation of Wholesale Distributors
Elsa Fairbanks Director, Food and Drink Exporters Association
Nigel Jenney Chief Executive, Fresh Produce Consortium
Alex Waugh Director General, National Association of British and Irish Flour Millers
Lynda Simmons Secretary General, National Edible Oil Distributors' Association
Michael Bell Executive Director, Northern Ireland Food and Drink Association
Dick Searle Chief Executive, Packaging Federation
Michael Bellingham Chief Executive, Pet Food Manufacturers Association
Michelle Riddalls Chief Executive Officer, Proprietary Association of Great Britain
Andrew Kuyk CBE Director General, Provision Trade Federation
Glyn Roberts Chief Executive, Retail NI
Karen Betts CEO, Scotch Whisky Association
Colin Smith Chief Executive, Scottish Wholesale Association
Donna Fordyce Head, Seafood Scotland
Angela Bowden Secretary General, Seed Crushers and Oil Processors Association
James Smith Chair, UK Flavour Association
Kate Nicholls Chief Executive Officer, UKHospitality
Read the original article on Business Insider