Exceptional policy responses needed to offset Brexit impacts
Food Drink Ireland (FDI), the Ibec group representing the food and drink sector, has today published its Budget 2021 Submission (see attached) which calls for exceptional targeted policy responses to offset the impacts of Brexit.
Paul Kelly, FDI Director said: “These measures include accessing the existing €4 billion in Brexit contingency funding set aside for the years 2020 to 2025, an extension beyond December 2020 of the Temporary Framework for State aid supports as well as substantial funding from the EU’s €5 billion Brexit Adjustment Reserve and any increased tariff revenue from UK imports in order to maintain and sustain economic activity and jobs.
“Funds amounting to 5% of the value of current annual export sales to the UK will be needed annually from domestic and EU sources for at least three years.”
These state aid supports and funds from the Brexit Adjustment Reserve should be targeted as follows:
• Short term measures to allow the Irish Government to re-introduce the Employer Wage Subsidy Scheme for Brexit impacted companies in a no-deal scenario.
• Medium term measures to allow the Irish Government to introduce investment aids to support Irish food and drink companies.
• Introduction of a state supported export credit insurance scheme.
• Additional funding for direct grant supports for innovation, marketing and trade promotion for companies looking to build new markets in the EU and internationally.
• Support measures to ensure sufficient accompanied roll on / roll off capacity for direct ferry routes to the continent.
• Direct supports to cover the additional ongoing costs associated with developing and maintaining customs clearance capability.
• A Tariff Support Mechanism fund to offset the tariff amount imposed by the UK on the most exposed sectors. The fund should also offset the impact of EU tariffs on indigenous manufacturers importing critical raw materials.