Coveney: 'Many UK companies simply not ready for Brexit realities'

'Supply chain issues remain but are improving'

Simon Coveney: 'We have seen more than a 300% increase in demand for direct ferry routes between Ireland and France.'

Many UK companies were simply not ready for the reality of Brexit and the associated supply chain issues the Minister for Foreign Affairs Simon Coveney has said.

A month after the United Kingdom left the European Union a range of issues have emerged with exporters and hauliers experiencing difficulties moving products between jurisdictions and having to comply with new custom and inspection arrangements.

Speaking to members of Cork Chamber this morning, Mr Coveney said the problems experienced by companies in Ireland, the UK and mainland Europe were expected and predicted.

"Because of some companies not being prepared we would see difficulties in terms of a smooth transition from the previous realities of the UK being part of the customs union and single market that we are to where they are now which is outside of that structure.

"It means lots of checks. If it's food, it's sanitary checks, health certs, customs check, individual products having to have different custom codes. It is not a straightforward process to trade with a third country."

"Many companies, particularly in the UK have simply not been ready for those new realities. They didn't have custom agents, they haven't trained up their own companies. Some companies in Ireland have also been somewhat exposed but by and large Irish companies have been pretty well prepared."

Mr Coveney said that even companies that were well-prepared have experienced supply chain issues. He gave the example of cornflakes that are produced primarily in Spain but are distributed to Ireland through a UK hub. "That essentially removes its EU badge of origin but it isn't a UK product and therefore has a tariff applied. So we are going to see alterations to supply chains."

"We have seen more than a 300% increase in demand for direct ferry routes between Ireland and France. We are seeing that in Cork, Rosslare and Dublin. Exporters and hauliers are choosing to simply avoid the landbridge that is the UK because of concerns about the Dover Calais route."

"But that does not mean we are not trading with the UK which is a huge part of the Irish economy so I am glad to say that products going east to the UK are by and large is working quite well."

"Products coming the other way are improving all the time. Over 80% of products from the UK predominantly into Rosslare and Dublin is being green land, straight off the ferry to market. It is the other 20% that may not have their paperwork, that need checks are experiencing some delays but we are improving all the time."