Ewing issues compensation demand for no deal Brexit
The political battle over leaving Europe intensified yesterday with a demand by Scottish Government Rural Economy Secretary Fergus Ewing that the UK government compensated farmers in the event of a no deal Brexit.
Ewing claimed that all the evidence indicated that Scotland’s farmers would be worse off when compared to the current trade arrangements, with some or all producers facing lower returns.
He singled out sheep farmers as being particularly at risk, with UK sheepmeat exports being worth £390 million each year, and 90 per cent of the export total destined for the European market. Added to which, Ewing pointed out, there was the prospect of “devastating” tariffs as high as 45-50 per cent being imposed on these exports.
“A no deal Brexit is by far the biggest threat to farming and to our successful food and drink sector. There is a range of independent research highlighting that under all possible scenarios failure to replicate the current trade arrangements with the EU will have a detrimental impact on farmers, with our sheep sector under particular threat.
“I am clear that we cannot countenance the prospect under no-deal of our exports facing high tariffs into the EU, while imports from the EU are waved through tariff-free.
“The UK government needs to set out its policy on tariffs now, so that businesses are clear what they will have to contend with.
“That is why I am calling on the UK government to guarantee that farmers will be compensated in the event of a no deal. Failure to do so, would increase the risk of businesses going under, significantly reduce net profitability across beef, sheep and crops sectors, and lead to widespread land abandonment across Scotland.”
Reacting Ewing’s call NFU Scotland president Andrew Mccornick said the Union’s position on a no deal Brexit remained that it was totally unacceptable and would be catastrophic for farmers and crofters.
He said: “Unfortunately, we seem to be hurtling towards this as a likely outcome. Scottish agriculture needs a deal to be brokered before it is too late and cannot afford to enter into a situation where there are no trade deals and no access to EU workers.
Mccornick suggested one option with a no deal Brexit would be to seek a funding package from the UK Treasury, ring fenced and paid via the Scottish Government, to bolster the existing support payments mechanisms.