Alison Ryan, Global Graduate, London Office, Bord Bia – The Irish Food Board
Key events this week:
In a last ditch attempt to stop no-deal before Parliament breaks for summer, the Northern Ireland Bill will go before the House of Commons on Thursday. MPs will have the chance to vote on legislation that could prevent the next Prime Minister being able to suspend government. The change to the bill would require progress reports on restoring devolved government in Northern Ireland to be debated regularly in Parliament, therefore preventing it being prorogued. The bill comes after Boris Johnson refused to rule out suspending Parliament in October, which would in effect prevent them from being able to stop a no deal Brexit.
Boris Johnson and Jeremy Hunt declared the Northern Ireland backstop “dead” this week. Both candidates promised to throw it out of any deal they negotiate with the, signalling a hardening of their Brexit positions. The EU has repeatedly ruled out reopening Theresa May’s withdrawal agreement to revisit the backstop.
Sterling fell to its lowest level in two years as worries over a disorderly Brexit intensified. The pound fell 0.7 per cent on Tuesday to $1.2433, taking it below the level breached in a temporary fall in January this year and to its lowest since April 2017. Sterling has fallen more than 2 per cent so far this month as investors have repriced the likelihood of a hard Brexit amid tough rhetoric from Mr Johnson, the overwhelming favourite.
Johnson has appointed a combative Eurosceptic, Daniel Moylan, as a senior adviser to his EU divorce team. The 63 year-old’s appointment was met with a mixed reception among moderates who have backed Mrs May’s deal, with one MP from that group observing that “we really are doomed” if Mr Moylan was in charge.
Ursula von der Leyen secured narrow parliamentary backing for her appointment as European Commission president on Tuesday as deep scepticism from pro-EU parties forced her to rely on votes from far-right and populist MEPs.
Reports emerged this week of a bad-tempered meeting between Brexit secretary, Steven Barclay, and the EU’s lead negotiator, Michel Barnier. Mr Barclay held the private talks a week ago without the usual team of British negotiators and, according to various sources, took an approach described as brutal, bullying, bad tempered and confrontational.
Implications for Irish food & drink companies:
Both Conservative Party leader contenders have ramped up their no-deal rhetoric this week and signalled their determination to leave the EU by October 31. The currency market reacted negatively, with the pound falling to its lowest level in the past two years. The risk of a no-deal Brexit has increased and 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:
- Supply Chain Mentoring Programme
- Customer Readiness Training
- Financial Risk Mentoring Programme
- Sanitary & Phytosanitary (SPS) Training Programme
- Supply Chain Optimisation Workshop
- Commercial Marketing Strategy Workshop
- Key Customer Management Programme
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.
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.