News article
5 November 2020
FDF Scotland signs joint open letter to the Prime Minister – key asks ahead of the end of the transition period
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Rt Hon Boris Johnson MP
Prime Minister
10 Downing Street
London
SW1A 2AA
4 November 2020
Dear Prime Minister
As Scotland's leading food, drink, seafood and farming organisations, we are
taking the unusual
step of writing directly to you to highlight the perilous situation facing our
sector with less than 60
days until the end of the Brexit transition period.
There are immediate steps that need to be taken by the UK Government to avoid
enormous
damage to our industry - one that has faced a multi-billion pound impact from
the Covid-19
pandemic.
As you will be aware, food and drink is one of Scotland's fastest growing and
globally recognised
sectors, with a value of £15 billion per annum and employing 120,000 people in
communities the
length and breadth of Scotland. The sector is critical to Scotland's economy as
one of the biggest
employers, particularly in coastal and rural communities where businesses,
large
and small, are the
lifeblood.
Covid-19 has had a devastating impact on many businesses across the industry and
through the
supply chain. The effective shutdown of export markets across the world has
been
compounded by
the closure of huge swathes of the UK hospitality sector in 2020. The impact
has
been grave with
the latest assessment being a £3 billion loss of revenue to industry this year
alone, compounded by
the additional operational costs incurred by those businesses.
Just as businesses thought they had weathered the worst of the storm and could
chart a path to
recovery, the second wave of the virus has now taken hold, with further deep
restrictions across the
UK and much of Europe. The timing of the second wave means the impact is likely
to be even more
severe given this is typically the most important trading period for many
businesses, particularly our
seafood, red meat and drink producers.
The end of the transition period and ever-increasing uncertainty on the terms of
our new trading
arrangement with the EU compounds these concerns. The EU is the destination of
70% of our food
exports. It is also the largest market for Scotch whisky. Indeed, our food and
drink exports are four
times more important to the Scottish economy than to the English economy.
Tariffs, border disruption
for high value perishable goods, and certification costs are all far greater
threats for the food and
drink sector than they are for other sectors in the economy. And our food
producers are extremely
reliant on labour from the EU, such as the North East where over 70% of the
workforce in seafood
processing are EU nationals.
So what we do in the next 60 days is critical to the survival of many food,
drink, farming, fishing
and seafood businesses and the supply chain and jobs they support.
We recognise the enormity of the task facing the UK Government in negotiating
new trade deals.
As an industry in Scotland, we are committed to working with you to support
this
process. However,
whilst new market opportunities may emerge in the future the fallout from a No Deal
would
be catastrophic and we cannot emphasise strongly enough the need to avoid this
outcome.
We wrote to your Cabinet colleague George Eustice, Secretary of State at DEFRA,
seven weeks
ago, just as we had passed the 100 days to go milestone. We have yet to receive
a substantive reply
to our letter, or the offer of a meeting that was requested. Needless to say
this is enormously
disappointing and leaves us questioning the commitment to acknowledge, let
alone
address, our
concerns.
In light of this, we now seek urgent action and assurances directly from you as
follows:
- As a top priority, the UK Government must negotiate a six-month “grace
period” from the end of the transition period to allow businesses to adjust to
the new
rules.
This was ultimately what the transition period was meant to do but there
remains
a number of
unanswered questions around trading arrangements after 31 December. Most
significantly, Brexit
preparation planned for 2020 have been lost to a battle against a global
pandemic. A six-month
grace period would enable businesses to trade with the new rules but without
fear of significant
border disruption, enforcement action and loss of further revenue. Most
critically for Scotland is the
need for a six-month derogation from the requirement to produce export health
certificates and other
export certification including haulage permits. To be clear, there is no system
available that can cope
with the increased demand in EHCs likely to be required from 1 January.
- A commitment to bring forward a package of financial compensation for
producers, processors, manufacturers and distributors who encounter losses as a
direct result of
border or market disruption, initially for a 3-month period but to be reviewed
thereafter. Clearly
appropriate criteria would need to be defined and agreed but having this safety
net, to cover
instances outwith businesses control, would provide much reassurance and
confidence to business
at a time when they have never been more fragile.
- Finalise operational arrangements for enabling the smooth passage for seafood
consignments across the Channel (Operation Brock) and at other ports; and
a commitment
from the UK Government that its new procured ferry service capacity could be
used for exporting
seafood consignments if required. Given the nature and value of the seafood
supply chain, which
operates on a just-in-time model, it is vital that smooth transit continues in
order to fulfil orders and
retain customer confidence, especially in the face of current market disruption
and fierce competition.
- Add food and drink sector roles to the Scottish Shortage Occupation List and
support
seasonal and remote workers to facilitate the continuation of overseas
labour where it is
necessary to do so. Our sector is more reliant on overseas labour than any
other
sector and
accounts for a greater proportion of our economy than the UK as a whole. Parts
of the food sector
are even more reliant, such as seafood processing and soft fruit. Whilst we
will
do all we can to look
closer to home and promote our jobs to the local population, we must retain the
ability to access
labour from elsewhere which has served us well and loyally over the years. We
ask you to include
food and drink roles from the MAC's latest Shortage Occupations List review on
the Scottish SOL in
time for January 1st 2021, provide clarity on the future of the Seasonal
Workers
Pilot, and to consider
taking forward the MAC's recommendation for a Remote areas pilot visa.
With less than 60 days until the UK enters into new historic trading
arrangements, time is not on
our side and there is an enormous task that lies ahead to get businesses ready
and support them
through the coming months. We are sure you do not underestimate the scale of
this challenge and
the unique combination of concerns facing our sector, the businesses within it
and the people whose
livelihoods depend upon it. It is vital that the UK Government stands ready and
willing to support our
industry in the months ahead and we urge your Government to agree to the
measures we have
articulated above.
We look forward to hearing from you at the earliest opportunity.
We are copying this letter to the Secretary of State for Scotland and the
Secretary of State at
DEFRA.
Yours sincerely
Scotland Food & Drink, James Withers, Chief Executive
Food and Drink Federation Scotland, David Thomson, Chief Executive
National Farmers' Union Scotland, Scott Walker, Chief Executive
Quality Meat Scotland, Alan Clarke, Chief Executive
Scottish Agricultural Organisation Society, Tim Bailey, Chief Executive
Scottish Association of Meat Wholesalers, Martin Morgan, Executive
Manager
Scottish Bakers, Alasdair Smith, Chief Executive
Scottish Salmon Producers Organisation, Tavish Scott, Chief Executive
Designate
Scottish Seafood Association, Jimmy Buchan, Chief Executive
Scottish Wholesale Association, Colin Smith, Chief Executive
Seafood Scotland, Donna Fordyce, Head of Seafood Scotland
More information
Contact Kirsty Ritchie, Food and Drink Federation Scotland, at: kirsty.ritchie@fdfscotland.org.uk, or 0131 222 8040.
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