Connect with us
Advertisement
Advertisement

Politics

Retailers’ no deal reality check

Published

on

THE HEADS of the UK’s major food retailers, including McDonald’s, M & S and Asda, have written to MPs and dramatically spelt out their view of the risks of leaving the EU without an agreement.

The warning comes shortly after the revelation that Britain has begun stockpiling food, fuel, spare parts and ammunition at military bases in Gibraltar, Cyprus and the Falklands in case of a no-deal Brexit.

With all contingency plans routinely labelled ‘Project Fear’ by those Brexiters stuck on transmit instead of receive, the retailers have taken a significant risk in sticking their collective head above the parapet by trying to address a substantial issue which is rather glossed by those proclaiming the benefits and underplaying the downside of a crash out Brexit.

The letter is backed by the British Retail Consortium, which represents over 70% of Britain’s retailers by turnover.

The Government said that it was taking special measures to minimise the impact of a no-deal Brexit on supermarkets’ suppliers and insisted that food was not going to run out as a result.

“The government has well-established ways of working with the food industry to prevent disruption and we are using these to support preparations for leaving the European Union.”

The Food and Drink Federation, which represents thousands of food processors and manufacturers, has said a no-deal Brexit would be a “catastrophe”, with uncertainty undermining investment and constraining businesses’ ability to plan and export.

DEAL OR NO DEAL: THE LETTER

On behalf of our businesses and the wider food industry, we want to highlight to you the challenges for retailers and the consequences for millions of UK consumers of leaving the European Union without a deal at the end of March. While we have been working closely with our suppliers on contingency plans it is not possible to mitigate all the risks to our supply chains and we fear significant disruption in the short term as a result if there is no Brexit deal. We wanted to share with you some practical examples of the challenges we are facing.

Our supply chains are closely linked to Europe – nearly one-third of the food we eat in the UK comes from the EU. In March the situation is more acute as UK produce is out of season: 90% of our lettuces, 80% of our tomatoes and 70% of our soft fruit are sourced from the EU at that time of year. As this produce is fresh and perishable, it needs to be moved quickly from farms to our stores.
This complex, ‘just in time’ supply chain will be significantly disrupted in the event of no deal. Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays; Government data suggest freight trade between Calais and Dover may reduce by 87% against current levels as a result. For consumers, this will reduce the availability and shelf life of many products in our stores.

We are also extremely concerned about the impact of tariffs. Only around 10% of our food imports, a fraction of the products we sell, is currently subject to tariffs so if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices. The UK could set import tariffs at zero but that would have a devastating impact on our own farmers, a key part of our supply chains.

Our ability to mitigate these risks is limited. As prudent businesses we are stockpiling where possible, but all frozen and chilled storage is already being used and there is very little general warehousing space available in the UK. Even if there were more space it is impossible to stockpile fresh produce, such as salad leaves and fresh fruit. Retailers typically store no more than two weeks’ inventory and it becomes difficult to restock stores if the supply chain is disrupted. We are also attempting to find alternative supply routes but there are limited options and not enough ferries, so this could only replace a fraction of the current capacity.

We are extremely concerned that our customers will be among the first to experience the realities of a no deal Brexit. We anticipate significant risks to maintaining the choice, quality and durability of food that our customers have come to expect in our stores, and there will be inevitable pressure on food prices from higher transport costs, currency devaluation and tariffs.

We are therefore asking you to work with your colleagues in Parliament urgently to find a solution that avoids the shock of a no deal Brexit on 29 March and removes these risks for UK consumers.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Politics

Covid-19 restriction relaxations in Wales brought forward

Published

on

THE WELSH GOVERNMENT will be accelerating elements of its programme to relax Covid-19 restrictions as cases of new infections continue to fall across Wales, the First Minister today announced.

People will be able to form an extended household, visit the gym or take part in organised outdoor activities a week earlier than planned, as the public health situation – and vaccination rates – continue to improve.

The First Minister last week set out a detailed timetable for moving Wales firmly into alert level three. But some of these measures will now be introduced sooner than planned as cases have fallen markedly from 37 cases per 100,000 people to fewer than 21 per 100,000 this week.

The pressure on hospitals also continues to ease. Confirmed cases in hospital beds continue to reduce, and now stands at 89. This is 26% lower than last Thursday and is the lowest position since 22 September 2020.

The planned opening date for organised outdoor activities and outdoor wedding receptions will be moved forward to Monday 26 April from 3 May.

And, from Monday 3 May, a week earlier than previously signalled, gyms, leisure centres and fitness facilities will be able to reopen for individual or one-to-one training. Extended households will also be allowed again, enabling two households to meet and have contact indoors.

First Minister, Mark Drakeford said:

“The public health situation in Wales continues to improve thanks to everything you are doing to help us control this awful virus. Cases of the virus are falling and our incredible vaccination programme continues to go from strength to strength.

“Last week, we set out our programme to further re-open the economy and relax the restrictions we have lived with for so long, as part of our careful, step-by-step approach to keeping everyone safe. This week, because of the improvements we continue to see, we can bring forward some of our plans.

“This is only possible because of the efforts everyone is making to protect themselves and their loved ones.”

From Monday 12 April, the following relaxations will go ahead:

  • The full return of children to schools for face-to-face education, all post-16 learners will return to further education and training centres, and university campus’ will be able to open for blended face-to-face/online learning for all students;
  • All remaining shops will reopen, completing the phased reopening of non-essential retail;
  • All remaining close contact services will open, including mobile services;
  • Travel restrictions on traveling into and out of Wales will be lifted. However, restrictions on travel to countries outside the Common Travel Area without a reasonable excuse, remain in place. The Common Travel Area means the United Kingdom, the Channel Islands, the Isle of Man and the Republic of Ireland;
  • Wedding ‘show-arounds’ by appointment are allowed;
  • Restrictions on political canvassing are removed, subject to canvassers doing so safely.
  • Further easements to restrictions in the coming weeks will be subject to the public health situation remaining favourable. These will be confirmed at the next three-weekly review of the coronavirus regulations on 22 April.

On Monday 26 April:

  • Outdoor attractions, including funfairs and theme parks, would be allowed to reopen;
  • Outdoor hospitality can resume, including at cafes, pubs and restaurants. Indoor hospitality will remain closed except for takeaways;
  • Organised outdoor activities for up to 30 people can again take place (previously Monday 3 May);
  • Weddings receptions can take place outdoors for up to 30 people (previously Monday 3 May).

On Monday 3 May (previously Monday 10 May):

  • Gyms, leisure centres and fitness facilities can reopen. This will include individual or one-to-one training but not exercise classes;
    Extended household will again allow two households to meet and have contact indoors.
  • As set out in the revised Coronavirus Control Plan, a small number of outdoor pilot events of between 200 and 1,000 people are also being planned.
Continue Reading

News

Ceredigion MS and MP call on Welsh Government to support agricultural shows

Published

on

ELIN JONES MS and Ben Lake MP have called on the Welsh Government to provide financial support to all agricultural shows to see them through to 2022 

A number of shows up and down the county were forced to cancel last year, starving farming communities of annual chances to meet acquaintances, denying traders a vital market and rural charities of fundraising activities and ultimately causing significant losses to the rural economy. 

About seven million people attend agricultural and county shows across the UK every year, and numbers were growing before the pandemic, according to the Association of Show and Agricultural Organisations (ASAO), the voice of the agricultural show industry. 

Ben Lake MP calls on Welsh Government to support agricultural shows

In 2019, agricultural shows across the UK generated £128.6m of income, the ASAO figures show. But the mass cancellation of physical shows last year led to a £36.5m loss, while the impact on the wider economy was an estimated loss of £810m. 

Some agriculture show organisers in Ceredigion have already announced cancellations of their 2021 events. These include: Aberystwyth County Show, Lampeter Stallion Show, Barley Saturday, and Llanilar Show. 

With the possibility of further show cancellations this year, Elin Jones MS and Ben Lake MP have called on the Welsh Government to provide financial support to all agricultural shows to see them through to 2022.  

Elin Jones MS said: “For many farming families in Ceredigion, the agricultural show season is the highlight of the year. Every agricultural show plays an important part in promoting our nation’s rural sector, in addition to the rich array of traditions and history associated with rural Wales. 

“Whilst virtual agricultural shows went some way to filling the void left by the cancellations in 2020, nothing replaces the buzz of live outdoor shows.  They give opportunities for communities to come together and provide a vital hub for the farming and rural community to meet, socialise and conduct business.” 

Ben Lake MP added: “Agricultural shows and societies are a crucial feature of the annual calendar for most rural communities, showcasing the heritage of key elements of farming and rural life in Ceredigion. 

“With the possibility of further show cancellations in 2021, we believe it is timely for the Welsh Government to consider providing a one-off grant payment to all agricultural shows to ensure that they are able to see this pandemic through.” 

Continue Reading

News

16 and 17 year old’s urged to register to vote in this year’s Senedd Elections

Published

on

ELIN JONES, Ceredigion’s Member of the Senedd, has urged everyone who will be 16 years old by or on the 6th of May – Senedd Election Day – to register to vote. This is the first time 16 and 17 years olds will be able to vote in a national election in Wales.

Speaking directly to young people in Ceredigion, Elin said: “One of my proudest achievements from the last Senedd has been helping to pass the law that has extended the vote to 16 and 17 year olds.

“This is the biggest change in voting rights in Wales for many, many years.

“So many aspects of young people’s lives have been turned upside down by the pandemic, so it’s completely right that you have the democratic right to express your opinions on how things have been run.

“We now have a fixed date for the election, providing the Covid situation doesn’t change. So if you will be 16 years old or older by the 6th of May, then make sure you register to vote. Your voice counts, and I hope that you will use it.”

Continue Reading

Popular This Week