Grace Period Extension Welcome – but NI needs a long term solution, says NIRC

Grace Period Extension Welcome – but NI needs a long term solution, says NIRC
Logistics import export issues - NI protocol has raised supply chain problems for supermarkets that don't have an all-island supply chain.

The Northern Ireland Retail Consortium has said that the grace period extension is welcome – but a long term solution is needed.

Secretary of State for Northern Ireland Brandon Lewis said the government was taking several ‘temporary’ steps to avoid disruptive cliff edges’ by extending the grace periods until at least October 2021. The move has stocked tensions in Brussels. The government has said it intends to introduce certification requirements in four phases from October.

The UK also plans to roll out a new digital assistance scheme alongside the phased approach to ‘digitise the certification and verification processes.’

The move was welcomed by the major supermarket multiples – raising concerns that the move could prioritise multiples over symbols and independents. The scheme will apply to supermarkets and their suppliers. Most wholesalers and suppliers will be covered by the grace period.

Aodhan Connolly NIRC
Aodhan Connolly

Director of the Northern Ireland Retail Consortium, Aodhán Connolly said: “The retail industry welcomes the extension of the grace periods in both time and scope, even if it is unilaterally, to allow us to continue to give Northern Ireland households the choice and affordability they need. We now have short-term stability, one of our four key asks. But there is still much to be delivered.

Workable solution

Retailers and consumers still need the certainty of a long-term workable solution. We need simplicity using things like digitisation and an auditable and certified supply chain to deliver a trusted trader scheme, and a veterinary agreement to remove frictions. This needs to be proportionate to the low level of risk of UK retail goods coming into Northern Ireland going onto the Single Market.”

Affordability

“And lastly, we need affordability. As both the EU and UK have said in recent weeks, this all must be done with the least disruption to communities in Northern Ireland. That means the costs of new processes must be kept to a minimum to allow us to keep costs down for Northern Ireland families. The business community has proven that it will use best endeavours to make things work. We now need the EU and the UK to show that they have the political will to live up to their side of the bargain by delivering a pragmatic, workable, risk-based solution.”