Northern Ireland is missing a dream opportunity to stand on its own two feet financially

The UK Government appears to be embarrassed by the fact that Northern Ireland has already outperformed GB economically over the last 12 months

Businesses in Northern Ireland see the opportunity from the protocol but will not be willing to invest while uncertainty hangs over it.

Deflection, distraction and disinformation. That is, what we have sadly come to expect, from the UK government. The “Brexit Freedoms” Bill is being introduced by the UK government with the claim that it will make it easier to amend “outdated EU law” and cut “£1 billion of red tape” for UK businesses.

What it doesn’t say on the label, is that the ‘outdated EU law’ is in fact an international contractual agreement that they negotiated and signed up to or that the “red tape” proposed to be cut, was UK prime minister Boris Johnson’s solution, to the Northern Irish post Brexit quandary. In simple terms the “Freedoms Bill” proposes to enable UK government ministers to repeal parts of the UK’s Withdrawal Agreement with the EU, to suit the UK.

The protocol gave a special economic advantage to Northern Ireland. If goods are manufactured in Northern Ireland or are sufficiently processed there, in order to create an origin in Northern Ireland they have considerable trading advantages. Essentially, these products can be sold using “unfettered” market access rules to GB because Northern Ireland is still part of the UK Customs Territory and they can also be transferred and sold freely in the EU as Northern Ireland is still in the single market for goods.

Northern Ireland has the highest share of workers employed by the public sector in all of the UK at about 25%. What Northern Ireland needs is enterprise and job creation. Manufacturing businesses see the opportunity but generally speaking will not be willing to spend the money required to expand or set up manufacturing plants based there, while uncertainty hangs over the protocol arrangement.

This is a dream opportunity for the region to stand on its own two feet financially rather than being a subsidised state.

The UK government don’t appear to care about creating the necessary stable economic environment in Northern Ireland to sustain job creation. In fact, they appear to be embarrassed by the fact that Northern Ireland has already outperformed GB economically over the last 12 months.

Instead, Johnson and his ministers, appear to be weaponising Northern Ireland to deflect from the heat of fires voraciously burning at home. The bottom line is that the majority of elected representatives in Northern Ireland support the Protocol arrangement and a poll conducted prior to the assembly elections in May showed the economy and health care are at the top of concerns to voters with the protocol issues ranking much further down the list of priorities.

Over the last three years, we have worked with more than 50 businesses dealing with the challenges of Brexit. In broad terms, businesses have adapted reasonably well to major changes. The key issues businesses have had to grapple with include the new customs procedures and the origin of goods.

The UK government introduced the Trader Support Service (TSS) in 2020. This was a measure designed to ease the transition of businesses, in terms of completing customs declarations but the results have been very mixed for businesses.

It’s a free service but once it is phased out NI businesses, like their counterparts in the Republic will have to pay private customs agents to process each consignment of goods crossing the water which is likely to cost between £35 to £50 or alternatively buy software, get training and do it themselves.

While most businesses have come to terms with and adapted to the changes it’s estimated that some 3,000 businesses on both sides of the water have simply ignored the obligation to file appropriate customs declarations. These businesses will be easy ‘pickings’ for Revenue in years to come when audit trails and invoices are examined. The good news is that there is still time to act for those businesses and Revenue are showing a patient approach, so far.

There is a myriad of other adaptions and nuances that businesses have come to terms with on this Island. The ball is at our feet economically, now, and a huge opportunity will be lost if the North becomes cannon fodder to the UK government’s bluff and deflection strategy. Let’s hope we can keep Boris Johnson’s bull in a China shop style of politics away, from the fragile hope and the delicate balance, that is Northern Ireland.

Adrian Kelly is director of Brexit Plan which helps businesses through the new trade rules and arrangments