With the deadline for extension of the transition period now passed, businesses in Northern Ireland are woefully underprepared for Brexit.
While the coronavirus disruption may dominate the business news today, the issue of Brexit hasn't gone away. The UK officially left the european Union at the end of January this year, kicking off an 11-month transition period before the existing trade rules and laws change. That comes to an end on December 31st this year, and businesses need to prepare for what that will mean for them.
The transition period is designed to give the UK government time to prepare businesses for the change and set up any new infrastructure such as customs clearing warehouses and border posts. The problem for many companies in Northern Ireland is that even at this late stage, there's very little actual information on how Brexit will affect their business or what they can do to prepare.
A new survey carried out by the Londonderry Chamber of Commerce found that 71% of businesses say the government hasn't engaged enough with NI business to help prepare them for Brexit. Of those businesses that have prepared, some have moved their operations to the Republic of Ireland and others have switched to local suppliers and manufacturers.
The UK government had an opportunity to apply for an extension to the transition period, but didn't request one by the July deadline despite the obvious disruption caused by the coronavirus. Of the businesses surveyed, 78% said they have made no preparations for Brexit, and 71% said the government hasn't helped them prepare. Around 72% thought the voice of business was ignored throughout the negotiations, and around 20% say they have already lost opportunities because of Brexit
Paul Clancy, Chief Executive of the Derry Chamber, commented on the issue: "After the impact of Covid-19, which is still affecting local companies despite the gradual re-opening of our economy, businesses have little to no capacity to deal with another crisis in the form of Brexit uncertainty. Our members are financially and resourcefully drained, but they are also totally in the dark about what is required of them come 1 January 2021."
Source: Written based on press release
