Paul Clancy, Chief Executive, Derry Chamber
Only three in ten businesses in the North West say they feel ready for Brexit, according to a new survey.
The survey, carried out by the Londonderry Chamber of Commerce, also found that 71% of businesses feel the government has not engaged enough with Northern Ireland businesses or helped them prepare for the changes and impacts of Brexit.
Some businesses have also reported making specific preparations in anticipation of Brexit including setting up operations and moving some services to the Republic of Ireland, or reducing their exposure to the EU.
The Northern Ireland Protocol will take full effect on 1 January 2021, with the deadline for an extension to the transition period having already passed at the start of July.
A new report published this week by members of the Northern Ireland Affairs Select Committee in the House of Commons has criticised the UK Government for leaving local businesses in the dark over its approach to post-Brexit trading and customs arrangements and says greater engagement with businesses is urgently needed.
The new report also calls on the government to urgently clarify how NI businesses will continue to have unfettered access to the rest of the UK single market and ensure that any new costs associated with complying with the new regulations are wholly covered by the government.
Paul Clancy, Chief Executive of the Derry Chamber, said:
“This survey paints a deeply worrying picture of where businesses are at in terms of Brexit. After the impact of Covid-19, which is still affecting local companies despite the gradual re-opening of our economy, businesses have little to no capacity to deal with another crisis in the form of Brexit uncertainty. Our members are financially and resourcefully drained, but they are also totally in the dark about what is required of them come 1 January 2021.
“The figures coming out of this survey are seriously concerning but not surprising – 78% say they have made no preparations for Brexit; 71% say the government hasn’t helped them to prepare; 72% feel the voice of business is being ignored throughout the negotiations; and a fifth of companies say they have already lost opportunities because of Brexit. Our survey again reiterates one crucial point – businesses need urgent clarity. Our members are uninformed and unprepared for what the next six months may bring.
“We welcome the publication of the Northern Ireland Affairs Select Committee’s report into the NI Protocol this week and we fully support its recommendations. In particular, we support the call for the government to cover any and all new costs of doing business between NI and the rest of the UK, and more clarity over how unfettered access will be secured if the government doesn’t secure a waiver from export declarations and exit summary declarations.”
Mr Clancy also urged the government to engage with local businesses as a matter of urgency, saying:
“We are also calling on the Northern Ireland Office to publish the terms of reference of its Business Engagement Forum as soon as possible. If this is the main body through which businesses here are engaging with the UK Government on Brexit issues, then it must be a priority to have North West representation on it to give our region a voice at the table, given our proximity to the Republic of Ireland and our members’ reliance on cross-border trade and business.
“Companies in the North West have been consumed by coronavirus for most of 2020 and they are now crying out for clarity and support over Brexit. The majority of our members are small or micro businesses. Another Brexit crisis and the potential for a no-deal exit on 31 December, coupled with the ongoing impact of Covid-19, may signal the death knell for many of them. Urgent financial and educational support is needed to prepare our members and guide businesses here through the transition period and beyond.
“Now that the deadline has passed to extend the transition period beyond 31 December of this year, it’s time for the government to step up and tell business in Northern Ireland what is required of them, otherwise the consequences will be seriously damaging.”