Technical notes to help the agricultural sector prepare for a ‘No-Deal’ Brexit scenario offer little comfort for the farming sector in Wales, the Farmers’ Union of Wales has said.
Whilst there were some welcome elements, such as a renewed assurance that eligible beneficiaries will continue to receive payments under the terms of the UK government’s funding guarantee, any clarification on funding post 2022 is still outstanding.
Worryingly exporting businesses are urged to find out themselves what the likely changes to customs and excise procedures will be and engage with other elements of the supply chain to ensure planning is taking place at all levels.
In addition, the Government has also called on businesses to ‘consider how they will submit customs and export declarations’, suggesting it may be necessary to engage customs brokers, freight forwarders and logistics providers, or acquire the appropriate software – all of which will ‘come at a cost’.
Other recommendations include re-negotiating commercial terms to reflect any changes in tariffs.
Responding to the news, FUW President Glyn Roberts said: “What these technical notes highlight is the mammoth task at hand and how unprepared the Government still is - they keep talking about the unlikely event of a ‘no-deal’ scenario - which is certainly a possibility but still don’t actually offer any contingencies.
“In terms of agriculture we have seen a renewed commitment to funding until 2022 but what happens after that? Looking at these notes it appears that still nobody is taking any responsibility for what could happen across the UK and the onus is put back on the industry or were favourable pushed back to devolved administrations who don’t always have our best interest at heart.
“Take the stance on exports for example - it is left to businesses themselves to find out how they are going to be affected with no help to navigate the unknown waters. And when it comes to tariffs, businesses will be left to hang. This should serve as a wake up call for anyone who derives their income from agriculture.”
Mr Roberts added that he welcomed the note that the devolved administrations and UK Government are working together to determine where UK frameworks need to be established, but that progress on this has to happen far more quickly to keep the UK home nations aligned where practical.
“We have called for the establishment of such frameworks from the word go and we are still waiting. Time is running out and and we are already seeing divergence which is seeing Welsh farmers put at a competitive disadvantage.
“No clear plan, extortionate tariffs, poor export conditions, a devolved administration hell-bent on getting rid of direct payments - this is not going to end well,” said Glyn Roberts.