BORDER FOOD AND DRINK BUSINESSES SAY THEY NEED SUBSTANTIAL BREXIT HELP IN BUDGET

17 September 2021 No Comments by The Northern Standard

A call was made yesterday for substantial measures to be introduced by the Government in its forthcoming Budget to assist Border region-located food and drink enterprises to deal with the ongoing negative impacts of Brexit. The Border counties including Monaghan and Cavan were identified as being particularly vulnerable to additional production and distribution costs that had arisen following the Trade and Co-operation Agreement reached between the EU and the UK following the UK’s departure from the European Union.

Paul Kelly, Director of Food Drink Ireland (FDI), Ibec’s representative body for the food and drink sector, said major market disruption from Brexit was a challenge facing many food producers, particularly those in the Border region, in addition to the impact they had felt from the global Covid-19 pandemic. FDI yesterday published a Budget 2022 submission which called for substantial Brexit Adjustment Reserve funding to be made available to the food and drink sector.

“In addition to Brexit-related transport and logistics cost hikes, Irish food and drink businesses are also experiencing inflationary pressures across most cost headings due to a combination of macro external factors which include global and domestic supply chain constraints and raw material inputs as well as Brexit and Covid-19,” Mr Kelly stated.

“FDI’s Budget 2022 recommendations are framed to ensure that Ireland’s most important indigenous manufacturing sector can control its cost base whilst also innovating and improving both productivity and sustainability.” The FDI has called for the introduction of a State-supported export credit insurance scheme; the investment of €300 million in competitiveness and trade promotion, and the continued availability of the Employment Wage Subsidy Scheme for those significantly…

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