Las Vegas Review-Journal

U.K. food industry facing Brexit

Wants competitio­n rules set aside for cooperatio­n

- By Danica Kirka and Jill Lawless The Associated Press

LONDON — The U.K. food industry is urging the government to set aside competitio­n rules so companies can coordinate supply decisions to combat food shortages if Britain leaves the European Union without an agreement on trade relations.

The Food and Drink Federation said Wednesday it had asked the British government to direct the Competitio­n and Markets Authority to relax rules that prevent such coordinati­on. It hasn’t yet received a response.

Prime Minister Boris Johnson says Britain will leave the EU on the scheduled date of Oct. 31, with or without a divorce deal. Many economists say a no-deal Brexit will trigger a recession and cause economic mayhem, with shortages of fresh food and other goods likely as customs checks snarl Britain’s ports.

The food and drink federation said Britain’s decision to delay Brexit until Oct. 31 from the original date in March is makes it more difficult for supermarke­ts to keep shelves filled because normal stockpilin­g for the Christmas season means there is less warehouse space available in the fall.

“If the government wants the food supply chain to work together to tackle likely shortages — to decide where to prioritize shipments — they will have to provide cast-iron written reassuranc­es that competitio­n law will not be strictly applied to those discussion­s,” said Tim Rycroft, the federation’s chief operating officer. “Without such assurances, any such collaborat­ion would risk incurring large fines” from the regulator.

Christophe­r Haskins, a former chairman of Northern Foods, one of the country’s largest suppliers of packaged foods, said panic buying is possible.

“We could be in a sort of wartime situation of a limited amount of food rationing,” he told the BBC. “Those who can remember the war, that took a long time to put into place and it was pretty haphazard and pretty unfair.

“I don’t think we’ll get to that, but I’m very concerned about the groups who aren’t in the supermarke­t chain, how they will deal with things.”

Michael Gove, the Cabinet minister in charge of preparing for a nodeal Brexit, said Britain had “a very resilient food supply system.”

 ?? Kirsty Wiggleswor­th The Associated Press ?? A fruit stall displays fruit Wednesday at a market in London. The U.K. food industry is asking the government to set aside competitio­n rules.
Kirsty Wiggleswor­th The Associated Press A fruit stall displays fruit Wednesday at a market in London. The U.K. food industry is asking the government to set aside competitio­n rules.

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