AS Remain MPs try to prevent a no-deal Brexit, there may be some light for businesses in an otherwise gloomy economic situation.
Being an independent wine merchant who travels extensively throughout Europe, and where 50 per cent of our trade is across the border, a no-deal Brexit would prove potentially catastrophic in terms of increased documentation, border checks, necessity to stockpile, and laboratory testing.
The hospitality industry, which JN Wine has been part of for over four decades, has seen its fair share of challenges but the double whammy of Brexit and no government representation in Northern Ireland is unprecedented and unsurprisingly taking its toll.
Around 1,000 days since a functioning devolved government, Hospitality Ulster puts the annual cost to the sector at tens of millions of pounds, as modernised liquor licensing legislation remains in draft and businesses continue to struggle with crippling rates and an unabating staffing crisis. With the Brexit debate one thing is clear, regardless of the politics, Ireland can only operate effectively as one economic block.
Proposals for long-anticipated VAT reforms (bringing us slightly further into line with the Republic of Ireland) have also been thwarted, resigned to the shelf to gather dust, despite being promised by two former finance ministers. There was to be harmonisation of corporation tax and the industry is at an enormous disadvantage with a much higher rates in the Republic. Harmonisation of tax rates is an irresistible argument if economic wealth creation for all becomes a reality.
Thankfully, in spite of local political paralysis and the ongoing Brexit circus, Northern Ireland plc is doing what it does best - getting on as best it can with the task of creating jobs and wealth for the economy. There have, of course, been casualties. But generally speaking, the local hotel sector enjoyed tremendous growth in 2018.
We ourselves have had some recent notable successes, determined to forge ahead with ambitious plans for growth. As part of our expansion across the UK and Ireland, we announced the strategic acquisition of London-based wine retailer Highbury Vintners, only made possible by the support of the Borough of Islington. Something the powers that be locally might take something from.
For us, the best-case outcome from Brexit is a free-trade agreement; whether that is yet a feasible outcome after the developments of recent days remains to be seen.
While another Brexit delay could afford businesses more time to prepare, what we really need now more than ever is confidence and clarity, though unfortunately neither are likely until this sorry mess is sorted.
It’s down to our politicians locally and nationally to sit down like normal human beings, normal businesspeople, and sort out a deal instead of the rhetoric we have to listen to every day.
Action needs to be taken before business leaders invest elsewhere and our young people leave these shores in search of a brighter future. Maybe it’s time for more intellectually progressive young and open minds to take the political stage. In the meantime, there’s nothing else for it than to continue to grit our teeth and knuckle down to business.
