Alison Ryan, London Office, Bord Bia - The Irish Food Board
Key events this week:
Boris Johnson and Jeremy Hunt went head-to-head this week in the first televised debate of the Conservative leadership contest. The debate was a heated and bitter affair, with both sides attacking the other. Hunt accused Johnson of "peddling optimism" and of putting his own personal aims above those of the country. Johnson on the other hand, called Hunt “defeatist” and hinted that the country had had enough of a “managerial style” and called his rival a “stickler for detail”. The two contestants clashed on a number of issues, Britain’s departure from the EU being the most contentious. The debate came after ballot papers had already been distributed to Tory party members.
The Bank of England has warned that the perceived risk of a no-deal Brexit has increased, which would bring with it “material risks of economic disruption” and “significant” market volatility. The UK economy is already feeling the effects of a Brexit-related slowdown as uncertainty hits sterling exchange rates and the prices of UK-focused equities, the BoE said on Thursday in its twice-yearly update on the resilience of the UK’s financial sector.
Ursula von der Leyen, the nominee to lead the European commission, has signalled she will not reopen Brexit talks with the next British prime minister and stressed the “precious” Irish backstop must be defended. She said she still hoped the UK would remain in the European Union, while indicating she had no intention to renegotiate the withdrawal deal agreed by Theresa May and EU leaders.
The Labour Party have publically come out in support of a second EU referendum. This week Jeremy Corbyn challenged the next Tory leader to hold another referendum before taking Britain out of the EU, and stated that Labour would campaign for Remain. The statement followed a shadow cabinet meeting on Tuesday morning and meeting with trade union leaders on Monday morning. Labour has previously advocated a general election before a second referendum. However, Corbyn did not say what he would do if he won a general election and was placed in charge of the Brexit process.
Jeremy Corbyn has taken the Labour Party to its lowest level of support in polling history, with less than one in five voters planning to back him at the next election, according to a survey. Labour are fourth for the first time, with only 18 per cent saying that they would vote for the party if an election were held today, the Times/YouGov poll shows.
More than 30 Tory MPs are ready to block a no deal Brexit. Sam Gyimah, a former minister and one of the original leadership contenders, said that “30-plus” Tory MPs were looking both at legislative options to prevent a no-deal exit and ways to stop the next prime minister from suspending parliament, in order to stave off “economic mayhem”.
Implications for Irish food & drink companies:
The Irish Government outlined this week that they were stepping up their no deal planning, as the threat of the UK leaving the EU without a deal on October 31 has increased. Both Conservative leadership contestants have signalled that they will leave the EU on October 31, with or without a deal. It is crucial therefore, that Irish food and drink manufacturers continue to prepare for all Brexit possibilities, including a no-deal Brexit.
The 2019 Brexit Barometer Industry Findings Report and Action Plan can now be downloaded from the Bord Bia website. The Action Plan provides practical information and outlines a number of steps that Irish food and drink companies can take in order to mitigate the risks posed by Brexit.
Bord Bia has also announced a new range of support services for Irish food and drink companies to help them to prepare for Brexit. There include:
Information on the support services can be found by following the above links. Alternatively, all information can be found on the Brexit page on the Bord Bia website: https://www.bordbia.ie/industry/trading-with-uk/
Looking ahead:
- A new Conservative Party leader is expected to be elected in the week commencing July 22.
- October 31 is the current Brexit deadline.