NI Businesses Voice No Deal Brexit Fears

With only weeks to prevent the UK leaving the EU with no deal, Northern Irish businesses have written an open letter to MPs warning them of the dangers of failing to unite behind a way forward that avoids a hard border and protects peace and economic progress in Northern Ireland.

It comes ahead of a crucial week in Parliament with MP's due to vote on Prime Minister Theresa May's deal tomorrow, Tuesday 12 March.

The letter, signed by over 50 representatives from the business community, warns of a lack of private sector investment in NI, significant damage to export markets, job losses and regulatory and tariff checks on goods traded across the border.

It reads: "The Northern Ireland business community wish to express its deep concern that local firms are hugely exposed to the economic fallout from leaving the EU with no-deal. The private sector across Northern Ireland is currently responsible for 560,000 jobs and has ambitions to create many more. However, a no-deal Brexit will result in significant damage to our export markets, supply chains, consumer spending power and the region's competitiveness. 

"Although Brexit has not yet happened, the negative economic impact is already starting to bite in terms of the private sector's ability to invest. Northern Ireland industry also notes with much regret, uncertainty around future funding for local infrastructure given the immediate loss of approximately £450 million from the European Regional Development Fund which was once earmarked for significant infrastructure projects. The uncertainty linked with Brexit has additionally contributed to significant skill and labour shortages.

"Local businesses believe that the failure to approve a deal with Europe on the UK's withdrawal from the EU will have significant repercussions for the local economy. Such a scenario will both hinder indigenous and foreign direct investment, it would result in significant job losses and will stifle opportunities for the next generation across Northern Ireland. The private sector has consistently stated that peace and prosperity are mutually dependent. A no deal Brexit will undoubtedly result in creating regulatory and tariff differences across the island of Ireland and will therefore have direct consequences for border checks and crossings. We therefore urge MPs across the UK to consider the damaging impact on Northern Ireland's economy and political stability in the event of a no-deal Brexit.

"The peace and economic progress that flowed from the Belfast/ Good Friday Agreement cannot be overlooked at this critical time in the UK's history. All Members of Parliament must consider the burden of responsibility that they now carry for this region's future.

"Local companies in Northern Ireland urge politicians to compromise, make progress and ensure 'no deal' is taken off the table."

Acknowledging the renewed warnings of the local business community against a no deal Brexit, the Alliance Party has criticised the DUP for adopting a reckless approach in not being prepared to rule out a no deal.

Deputy Leader Stephen Farry said: "A no deal outcome would be a disaster for the UK and an absolute catastrophe for Northern Ireland. In an almost unprecedented consensus, the business community, along with the Ulster Farmers Union and civic society have warned against the serious implications of a no deal. This includes most recently the joint letter from 50 local businesses organised by the CBI in Northern Ireland.

"Yet it is shocking, but sadly not surprising, that the DUP is still prepared to entertain a no deal Brexit. This is the implication of the insistence of DUP Deputy Leader Nigel Dodds in his joint article in the Sunday Telegraph that rules out the Withdrawal Agreement and insists on Brexit on March 29. This ideological obsession with Brexit is completely at odds with our future economic prospects and the cohesion of Northern Ireland. The DUP are adopting a deeply irresponsible and reckless approach."

Meanwhile, DUP MP Sammy Wilson has responded to the letter written by NI businesses, saying his party will not be "railroaded" into accepting a deal that is bad for the economy.

The east Antrim representative said: "In the run up to the vote on leaving the EU which will take place on Tuesday, it is clear that there is a coordinated attempt to railroad MPs into accepting the toxic, Union destroying, NI economy damaging deal, which the Prime Minister had previously agreed with the EU.

"What is particularly odd about the business letter is that first of all it concentrates on damage to the NI economy. This comes from a non-existent threat of infrastructure along the border, while ignoring the explicit terms of the withdrawal agreement. Those terms would exclude NI businesses from having any benefit from trade agreements, which the UK might strike with the rest of the world, in the future and more immediately, it would make it difficult for firms to trade with the GB market.

"It is important that businesses in NI do not simply fall into line with the Government's attempt to foist a really bad deal on the UK because of its incompetence in negotiations. They should also understand that we have used all of our contacts, abilities and Parliamentary strength to defend not only the Union but also the interests of businesses in Northern Ireland. That will be our guiding light when deciding how we will vote on Tuesday."



(JG/CM)