FTA welcomes reopening of the Northern Ireland assembly

New administration in Stormont gives logistics businesses ‘long-overdue reassurance that the sector’s concerns, and the future of NI trade, can once again be prioritised by government’, Freight Transport Association says.

Freight representatives have welcomed the reopening of the Northern Ireland assembly at the weekend after three years of suspension of the devolved government that has contributed to uncertainty amonglogistics businesses and stalled investment in local freight transport infrastructure.

Seamus Leheny, policy manager for Northern Ireland at the Freight Transport Association, today commented: “The confirmation of a new administration in Stormont gives Northern Ireland’s logistics businesses long-overdue reassurance that the sector’s concerns, and the future of NI trade, can once again be prioritised by government.Vital infrastructure spending now needs to be prioritised, after three years of stagnation, to protect NI’s trading relationships and its complicated, interconnected supply chain.

“With the prospect of changing trading conditions after Brexit, NI’s businesses need and deserve a strong representative voice in its local assembly and executive. FTA, as the business organisation representing logistics, stands ready and willing to provide any support and advice needed to assist the new administration as it rejuvenates the trade processes that NI needs.

“The next months and years could be challenging as we all move into a new trading relationship with the EU, but the FTA and its members stand ready to make the new, ambitious plans from Stormont a reality.”

Northern Ireland’s logistics businesses face significant change to trading conditions from the end of this year, when the UK’s transition period upon leaving the EU is expected to expire. Under the UK’s current draft withdrawal agreement with the EU, there are expected to be customs checks imposed between Northern Ireland and the rest of the UK, even if during the transition period, the UK is able to negotiate a new trade deal with the EU to take effect from January 2021.

Commenting late last year on the likely shape of those arrangements, FTA deputy chief executive James Hookham told Lloyd’s Loading List:“It is not expected this will result in the ‘frictionless’ trade that [former Prime Minister] Theresa May was promising. Indeed, there may not be much alignment with EU regulations at all. And if not then ‘hard’ borders will apply at the UK-EU border from that date, except in Northern Ireland where we understand the following arrangements will apply:

“Northern Ireland to and from Republic of Ireland: No declarations and no routine checks will be required.

“Northern Ireland to Great Britain: We understand that Export Declarations will need to be made by Northern Ireland exporters. So, some friction but no routine checks.

“Great Britain to Northern Ireland: Any goods considered to be ‘at risk’ of being transported from Britain through Northern Ireland and over the open border into the Republic will need to be declared to Customs upon entry into Northern Ireland and any EU customs duty paid.

“A ‘Joint Committee’ will decide what goods are at risk but our take is that most goods will need to be declared and duty paid. There will be a rebate mechanism for recovery of duty for goods that can be shown to have stayed in Northern Ireland.

“In addition, there will be sanitary and phytosanitary (SPS) checks performed on regulated goods, again upon entry into Northern Ireland. So, this will be a massive change to the supplying of Northern Ireland from GB distribution centres.”

Hookham said that it will be really important to be clear about which direction goods are travelling, as different arrangements would apply.

Source: Lloyd’s