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Bigger companies with more capacity are best prepared for a no-deal Brexit, with 35% saying that they have taken steps to deal with this outcome.
Bigger companies with more capacity are best prepared for a no-deal Brexit, with 35% saying that they have taken steps to deal with this outcome.
Image: Sam Boal/RollingNews.ie

'Don’t leave it until the last minute': Just 10% of businesses preparing for no-deal Brexit

A recent survey found that 45% of businesses overall record Brexit as the key issue they face.
Aug 5th 2019, 10:36 AM 11,794 19

JUST ONE-IN-10 small businesses in Ireland have made preparations for a no-deal Brexit, a new survey suggests.

IntertradeIreland’s (ITI) all-Island business monitor, published today, shows that 40% of companies around the country have reported growth for the three months to the end of June but few are optimistic about the next 12 months, citing Brexit as the biggest cause of this uncertain outlook.

The survey found that 45% of businesses overall, and almost 60% of manufacturing firms, record Brexit as the key issue they face.

“Worryingly, however, despite a range of support services, only 11% of respondents say they have made any preparations in the event of a ‘no-deal ’ Brexit,” ITI said.

The cross-border body said that larger firms are better prepared for the UK crashing out of the bloc as 35% of these businesses have made preparations so far. 

However, ITI found only 1 in 10 micro businesses have made any preparations.

PastedImage-61977 Source: IntertradeIreland

Aidan Gough, ITI’s director of strategy and policy, said the disparity between businesses recognising Brexit as the key issue facing them and the number actually preparing for it “remains a worry”.

ITI says 82% of cross-border traders, who are most exposed in the event of a no-deal, have not prepared for that outcome. Only 14% of businesses trading cross-border have examined the impact of customs, while just 12% have looked at the effect of tariffs. 

“Don’t leave it until the last minute. There are lots of small steps that businesses can begin to take now to prepare, whatever the outcome. It doesn’t have to be onerous. Planning is never wasted and is much preferable to panic if left undone,” Gough said. 

While we appreciate the uncertainty facing businesses and the constant challenge to win new and service existing orders, we nevertheless implore firms, particularly those that trade across the border, to make themselves aware of the issues that Brexit could pose for their operations and to explore mitigating options.

UK urges EU to reflect ‘political reality’

Summer weather August 2nd 2019 Johnson poses for a selfie with police officers as he arrives to meet emergency crews during a visit to Derbyshire. Source: Yui Mok/PA Wire/PA Images

British Prime Minister Boris Johnson’s government urged EU leaders again to drop their opposition to renegotiating the terms of Brexit, claiming recent European elections required a change of approach.

Johnson, who took office late last month, says he wants to leave the European Union with a deal but insists the current terms are unacceptable and if necessary Britain will exit on 31 October with no agreement at all.

In an article in the Mail on Sunday newspaper, Johnson’s Brexit Secretary Steve Barclay said European Parliament elections in May had changed the political dynamic and urged EU leaders to amend the mandate of their chief negotiator, Michel Barnier.

“The political realities have changed since Mr Barnier’s instructions were set,” Barclay wrote.

“Since the last mandate was agreed, 61% of all the EU states’ MEPs have changed. Such a fundamental shift illustrates the need for a change of approach.

“Mr Barnier needs to urge EU leaders to consider this if they too want an agreement, to enable him to negotiate in a way that finds common ground with the UK. 

Otherwise, no deal is coming down the tracks.

Former prime minister Theresa May quit after delaying Brexit twice while she tried unsuccessfully to get the divorce terms she struck with Brussels through the British parliament.

But the EU has refused to reopen the deal, the result of 17 months of tough negotiations.

Johnson has ramped up preparations for leaving without any agreement, however, an internal British government document warned that a no-deal Brexit could result in “consumer panic”, “security gaps” and “law and order challenges”.

Some British lawmakers have vowed to stop Johnson, fearing the economic consequences of severing ties with Britain’s closest trading partner overnight.

Additional reporting from - © AFP 2019

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