Food Drink Ireland welcomes approval of Brexit Adjustment Reserve
Food Drink Ireland (FDI), the Ibec group representing the food and drink sector, has welcomed today’s approval of the Brexit Adjustment Reserve by the European Council – the final legislative step in its adoption.
Paul Kelly, FDI Director said: “The Irish food and drink sector is by far the most exposed of any sector in any country in Europe to Brexit. Brexit has added significantly to trading costs including transport & logistics and additional administration both for trade with the UK but also for trade with the EU using the land-bridge. This is only going to get worse when border controls are introduced in the coming months.”
To address this competitiveness challenge, funds from Ireland’s €1 billion allocation from the Brexit Adjustment Reserve should be targeted as follows:
• Introduce a State-supported export credit insurance scheme.
• Invest €300 million in competitiveness and trade promotion.
• Keep the EWSS and grant support under review including for those significantly impacted by Brexit.
• Extend the Revenue Warehousing Scheme to Brexit impacted companies.
• Extend the Foreign Earnings Deduction to more markets.
• Extend and re-finance the ‘Ready for Customs’ grant scheme.