Spotlight now on Irish question

SINCE the Prime Minister’s Lancaster House Speech, where she laid out plans for the UK to leave the EU single market and customs union, the Irish question has been hovering in the background of the Brexit debate.

The last few days have plunged it into the political spotlight, and the business voice must be heard in the furore. Because nowhere is Brexit uncertainty higher than in the Northern Irish business community.

And across the whole UK, firms are becoming increasingly unsettled about what they will need to do to cope with a ‘bad’ Brexit. Every day, companies are facing tough investment decisions, choices that will determine the future of new jobs, new plants and new investments in the years ahead. Brexit uncertainty looms over almost every aspect of doing business in the UK.

This must change. Without progress at the EU council next week, 60% of firms with contingency plans will have put these into effect by Easter. That means jobs leaving the UK, in most cases irreversibly.

It is no surprise that, in Northern Ireland, contingency planning is even more advanced than anywhere bar London, for two reasons. Firstly, because relocation is much simpler if it’s only 40 minutes’ drive from home. Secondly, because every aspect of business life is intertwined in many companies, operating on an “island of Ireland” basis.

Companies are speaking up about it in greater and greater numbers every day, and policy makers should start listening.

Take the company Airporter. If you’ve taken a taxi from the Belfast Airport, you’ve probably ridden in an Airporter car. This week, their director warned that even a virtual border monitored by cameras could risk turning back the clock 30 years.

Or take Telestack, which designs, manufactures and installs bulk material handling systems, and has put current investment plans under review. This week, it warned it is already scoping out properties so that they have options ready to move business into the Republic of Ireland or overseas in the event of a no deal, or even just a deal where tariffs would have an adverse effect.

With well over a third of all Northern Ireland’s goods exports going to the Republic of Ireland, maintaining an open and frictionless border between the two countries, whilst simultaneously protecting the integrity of the UK internal market, is a challenge but something we need to get right.

For Wales the issue is further complicated by the logistical ‘landbridge’ which connects Dublin and Rosslare with Holyhead and Pembroke and a range of other Irish and Welsh ports for various traded goods. Wales is a key stepping stone to Europe for Ireland with over 10 ferry crossings a day just between Dublin and Holyhead. Additional checks will likely lead to long motorway tailbacks around our ports. With just-in-time such an important factor for retail goods, this could impact the cost effectiveness of these routes for many firms.

The First Minister has also intervened in this debate stating: “We cannot allow different parts of the UK to be more favourably treated than others.

“If one part of the UK is granted continued participation in the Single Market and Customs Union, then we [the Welsh Government] fully expect to be made the same offer.”

All of this generates uncertainty for business so it’s time to focus on the prize. Progress and agreement on transitional arrangements can be the dam that stops the flow of lost opportunities from becoming a flood.

We can then finally start talks on a deal that will start from 40 years of economic integration. With the right willpower, and if jobs and living standards are at the heart of every negotiating objective, talks will set us up for the next 40 years of close alignment.

Ian Price is director of CBI Wales