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Unionist Call to End NI Protocol

The Northern Ireland Protocol has wrecked political stability in Northern Ireland and impacted on our constitutional position. It does not enjoy the support of Unionists, indeed none of the Unionist MLAs elected in the recent Assembly election support it.

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0% found this document useful (1 vote)
11K views20 pages

Unionist Call to End NI Protocol

The Northern Ireland Protocol has wrecked political stability in Northern Ireland and impacted on our constitutional position. It does not enjoy the support of Unionists, indeed none of the Unionist MLAs elected in the recent Assembly election support it.

Uploaded by

DUP
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 20

TIME TO

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NI PROTOCOL

JUNE 2022
TIME TO
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NI PROTOCOL

Introduction
Rt Hon Sir Jeffrey Donaldson MP
DUP Leader

T
he Northern Ireland Protocol out about these issues given the Pro-EU
has wrecked political stability in bias that exists within elements of the NI
Northern Ireland and impacted on media. As elected representatives we are
our constitutional position. It does not daily dealing with problems and queries
enjoy the support of Unionists, indeed caused by the Protocol.
none of the Unionist MLAs elected in The publication of the Northern Ireland
the recent Assembly election support it. Protocol Bill is a recognition that Northern
The workings of both the Assembly and Ireland cannot continue with the NI
the Executive have been impacted since Protocol. It is important that this bill now
February. We want to see the Northern progresses rapidly through its legislative
Ireland Assembly and Executive restored stages in the Commons.
but that can only be achieved when there In our view the bill, alongside the
is a sustainable basis for doing so. regulations, if enacted, can help to restore
Economically the Protocol has had the political equilibrium in Northern
a negative impact on many. Small Ireland by replacing the Protocol with
and medium-sized businesses are arrangements that restore NI's place within
the backbone of the Northern Ireland the UK.
economy. The Protocol has been On 1 July 2021, I made the case for
devastatingly costly for many businesses as decisive action and urged both the
well as reducing choice for consumers at Government and the European Union to
a time when not all aspects of the Protocol conclude discussions in a manner that
have yet been implemented. Even would deal with the Protocol and its lack
those who were protocol cheerleaders of support in the unionist community. That
now recognise it is unworkable if fully did not happen, in large measure because
implemented. the European Union was not prepared
The checks on the Irish Sea are the to alter its negotiating mandate, instead
symptom of an underlying problem, preferring to propose measures within the
namely, that Northern Ireland is subject to context of the original legal text.
a different set of laws imposed upon us On this basis, the Government has no
by a foreign entity without any say or vote other option but to proceed with unilateral
by any elected representatives in either action to protect the stability of the Belfast
Belfast or London. Agreement institutions.
We are pleased to publish this paper,
which also sets out the experiences of
many who have been negatively impacted
e f f r e y D o n a l d s on
since the Protocol became law. Often the
owners of businesses feel unable to speak
J
Sir Jeffrey Donaldson MP

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It is a threat to the Union


A
unified internal market is central from GB will be temporary ignores the
to the constitutional foundations significance of unfettered trade to the
of the United Kingdom. Article 6 essential functions and characteristics of our
of the Acts of Union afforded citizens United Kingdom.
in all regions an equal footing in terms The longer the Protocol remains, the more it
of trade. The courts have found this will harm the Union itself.
has been implicitly repealed by the
Protocol. This has profound implications
for the future of the Union.
Due to the creation of a trade border in
the Irish Sea, trade has been diverted from
Great Britain to the Republic of Ireland.
Scottish, Welsh and English traders are
being robbed of Northern Ireland trade.
British business is being damaged by the
Protocol. This is unconstitutional.
The Central Statistics Office in the Irish
Republic recorded that in the eleven
months to November 2021, exports of
goods to Northern Ireland grew by 48%.1
This trend has continued in 2022, with
a 60% increase in the period January to Luggage checks at
February of this year.2 Increasingly, Northern
Ireland consumers are looking South Belfast
rather than to England, Scotland or Wales
to meet demand for raw materials and The EU has formally written to the
manufactured goods. Northern Ireland Agriculture Department
demanding passengers arriving from Great
The suggestion by the European Britain to Northern Ireland airports have
Commission and pro-Protocol advocates their bags checked for banned products
that any reorientation of supply chains with animal origins.

1
CSO statistical release, 17 January 2022, Goods Exports and Imports November 2021 - CSO - Central Statistics Office
2
CSO statistical release, 14 April 2022, Goods Exports and Imports February 2022 - CSO - Central Statistics Office

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It is bad for our economy


G
reat Britain is Northern Ireland’s 3 On 18 May 2022, the Consumer Council
most important market both for Northern Ireland confirmed that it
by volume and value. Local was aware of approximately 119-132
purchases from Great Britain (£13.4bn) retailers based in Great Britain who were
are four times more valuable as imports no longer delivering to Northern Ireland.5
from the Republic of Ireland (£3.0bn).3 This figure does not take account of
The Protocol has imposed costly and online marketplaces and therefore is
oppressive barriers to trade with our expected to be higher.
biggest and most valuable marketplace. 3 The supply of specialist goods, such
14,981 of the 16,032 local businesses as kosher food, has been particularly
that purchase goods from GB are small or disrupted.
micro businesses.4 These firms can’t afford 3 A number of estimates by economists at
customs departments or PR spokespeople. the University of Ulster and University of
They are being disproportionately Strathclyde have estimated that the cost
disadvantaged by the present of the Protocol per annum is currently
arrangements. £900m and could see a loss of 2.6% GDP
There is no tangible threat to the European in the long-term.6 They have concluded
Union from trade between Northern Ireland that ‘under no reasonable circumstances’
and the Republic of Ireland, which amounts could access to the EU market lead to
to only 0.02% of EU GDP. a full compensation of the loss of GDP
3 The Chief Executives of affected caused by the introduction of Protocol
retailers, including Sainsbury’s, Marks & restrictions.
Spencer, Tesco UK, ASDA and the Co- 3 SPS controls are disrupting established
operative Group have expressed concern movements of breeding and production
surrounding the long-term sustainability cattle and sheep between NI and GB.
of the Northern Irish grocery market. In some areas this has the potential to
3 Sainsbury’s don’t have stores in the eliminate the trade. The movement of
Republic of Ireland, yet they are subject cattle from GB to NI for direct slaughter
to checks on their lorries to ‘protect the has ceased.
EU single market’. There is no reason why 3 Specific and costly requirements for
goods staying in Northern Ireland should retagging livestock sold to Northern
be checked. Ireland keepers have been imposed on
GB sellers.

3
Overview of GB trade with NI, NISRA, 1 November 2021, NISRA Presentation
4
Overview of GB trade with NI, NISRA, 1 November 2021, NISRA Presentation
5
Overview note: GB retailers not delivering to Northern Ireland, 18 May 2022, Overview_note_GB_retailers_not_delivering_to_NI.pdf
(consumercouncil.org.uk)
6
"NI-GB protocol trade frictions now estimated to cost £900m," Dr Esmond Birnie, 23 December 2021, "NI-GB protocol trade frictions now
estimated to cost £900m" — Ulster University
Geoffroy Duparc-Portier, Giole Figus, Fraser of Allander Institute, 29 November 2021, The New Northern Ireland Protocol: is Northern
Ireland stuck in the middle? | FAI (fraserofallander.org)

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3 Draconian restrictions on the 3 There has been significant disruption


movement of chilled meat products for local firms purchasing goods from
from Great Britain has led to retailers GB that originate outside the United
such as Marks & Spencer opting to Kingdom, particularly those from the
source some products elsewhere Rest of the World.8 Under the Protocol,
but withdraw other product lines a Northern Ireland business that buys
completely from Northern Ireland. a product from GB but made, for
3 Seed potatoes from GB are prohibited example in China, would have to pay
from entering Northern Ireland. This tariffs. Tariffs would have already been
means local producers are cut off from paid on these products when they were
varieties that they have imported from first imported into GB, so in essence the
Scotland for years. Some varieties are not NI business in this case is facing double
available from other markets. the tariff cost as a business established
elsewhere in the UK.
3 Organic producers and horticulture
firms in GB have stopped serving the 3 Businesses that purchase a high volume
Northern Ireland market because the and high variety of goods from Great
Protocol means each shipment requires Britain face burdensome customs and
intensive documentation, including administrative requirements. Retail
a vet’s health certificate, an organic businesses are disproportionately
inspection certificate, export paperwork impacted, given they do not store high
and multiple inspections in the supply levels of stocks but instead order as they
chain journey. require it. 66% of goods purchased by NI
businesses from GB businesses are in the
3 Around 35 plant and tree species are Wholesale and Retail Sectors. 9
prohibited from entering NI under EU
rules, including native species. This is 3 Reaching limited solutions to specific
negatively impacting our capacity to challenges facing individual sectors
meet environmental and net zero targets. is time and resource intensive and
cannot provide permanent certainty
3 The Protocol has generated a divergence due to the threat of future UK-EU
between the tariffs on steel entering divergence over time.
GB and that which is due in NI. This
is because different trade defence
measures are in place in NI under EU
requirements and the rest of the UK.
The latest EU measure on steel is on
screws imported from China.7 A business
in NI must pay a specific duty rate for
imports sourced from a limited number
of Chinese companies whether bought
directly from China or from GB, while a
business in GB has no such additional
measures against them.

7
EU-China trade dispute to hit Northern Ireland construction costs - BBC News
8
Factory closure warning over NI steel import tariffs (rte.ie)
9
Overview of GB trade with NI, NISRA, 1 November 2021, NISRA Presentation

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It lacks cross-community
consent
S
ince its inception, every Unionist  the protocol fundamentally
MLA and MP has opposed the NI
Protocol. changes the constitutional
By design and implementation, the Protocol
relationship between Northern
fails to preserve the letter and spirit of Ireland and the rest of the United
Northern Ireland’s constitutional guarantee, Kingdom” and “this amounts
contained in the Belfast and St Andrew’s to a seismic and undemocratic
Agreements. This requires the consent of a
majority of the people of Northern Ireland change in the constitutional
for any diminution in its status as part of the position of Northern Ireland
United Kingdom. and runs contrary to the most
Northern Ireland’s constitutional position has fundamental premise in the
been altered without express, advance or
majority support. The Government’s decision Belfast Agreement and section
to discard the cross-community consent 1 of the Northern Ireland
principle has undermined political stability. Act 1998. 
Only when this damage is addressed will
there be a sustainable future for devolved The Belfast Agreement must not be
government in Northern Ireland. cherrypicked. The will of nationalists cannot
As Nobel Laureate Lord Trimble, one of be imposed on the Unionist community
the key authors of the Belfast Agreement in Northern Ireland. We need to move
has stated, forward together.

It is undemocratic
T
he Protocol has created a democratic in Northern Ireland. The DUP is seeking the
deficit in Northern Ireland. Laws can restoration of democratic decision-making
be devised, debated and imposed to the Assembly. We want to place the
on Northern Ireland by the EU without power in the hands of all the parties in the
direct or meaningful representation from NI Assembly.
our devolved legislature or national The EU’s proposal to improve transparency
parliament. While decision-making has on EU laws applicable in NI through
been repatriated in the rest of the United a new website, the publication of
Kingdom, businesses and consumers are minutes and stronger links between the
forced to abide by rules imposed by a Northern Ireland Assembly and the EU-
foreign jurisdiction. This is not in keeping UK Parliamentary Partnership Assembly
with the referendum result. is merely window dressing. It does not
Regulation without representation would address the central chasm in accountability
not be tolerated in any other part of the at the heart of the Protocol.
United Kingdom. It should not be tolerated

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Northern Ireland citizens


deserve the same rights as
those in Great Britain
T
he Protocol represents an These are barriers not applicable to
unwarranted attack on the rights and citizens in England, Scotland and Wales.
identity of those in Northern Ireland 3 Seasonal and speciality products
who cherish and value membership of the have been unavailable to customers
United Kingdom. Article 6 of the Acts of in Northern Ireland. This includes
Union requires that everyone in the United Christmas ranges at a number of major
Kingdom is entitled to the same privileges, supermarkets and items produced
including in relation to trade. Despite specially to celebrate Her Majesty the
this, the current arrangements create new Queen’s Platinum Jubilee.
social and economic inequalities between
the citizens of Northern Ireland and those 3 Orders for almost 100,000 trees, some of
living in Great Britain. which were intended for local schools in
Northern Ireland to mark the centenary,
3 Proposed VAT cuts on home heating have been cancelled by GB suppliers.11
bills and energy efficiency cannot be Perversely, this has encouraged imports
extended to Northern Ireland under the from EU countries, which undermines
terms of the Protocol. previous strides made in relation to
3 Research conducted by the Consumer biosecurity.
Council for Northern Ireland between 3 The movement of horses is now
January and June 2021 found that: administratively complex and time
3 over two thirds (68%) have consuming. This has proven prohibitive
experienced UK online retailers no for local amateur competitors seeking to
longer delivering to NI; attend shows and events in GB and then
3 nearly two thirds (65%) have return home. Outstanding requirements
experienced delayed delivery of on pet travel would create similar
goods from GB online retailers; inequalities for consumers and those
reliant on service animals.
3 over half (53%) have experienced
reduced access to products offered by 3 Under the Protocol, the EU holds a veto
GB retailers; over state and regional aid granted in
Northern Ireland where it is deemed to
3 over half (51%) have experienced an affect trade with the EU. This holds the
increase in the cost of goods bought potential to prevent Northern Ireland
online; from benefitting from the national
3 nearly a third (29%) have been levelling-up agenda.
charged customs related fees for
parcels coming from GB;10

10
The Northern Ireland Consumer Perspective, An overview: Early perceptions and experiences of EU Exit, September 2021, EU Exit Report
- 11 October 2021 - The NI Consumer Perspective - Upload Version.pdf (consumercouncil.org.uk)
11
Brexit: Almost 100,000 tree orders cancelled as Northern Ireland buyers hit by Irish Sea border - BelfastTelegraph.co.uk

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The worst is still to come


T
he limited unilateral action by 3 Customs declarations on parcels are
the Government, including the currently only being required for
extension of grace periods, has business-to-business transactions of a
prevented even further harm, cost and value greater than £135. The loss of this
delay for businesses impacted by the protection would significantly expand
Irish Sea Border. and entrench disruption for consumers.
3 The Government has provided in the 3 DEFRA’s Movement Assistance Scheme
region of £500m through the Trader was launched to reimburse traders for
Support Service per year. However, this some of the certification costs associated
will not be provided indefinitely. with moving animals, plants and related
3 The loss of trader support funding products from GB to Northern Ireland
altogether or the requirement for a future under the Protocol. This includes the cost
Executive to foot the bill going forward of certifying Export Health Certificates
would adversely impact the Northern (EHCs) and Phytosanitary Certificate.
Ireland economy as well as frontline However, concern has previously been
public services. raised by farming representatives that not
all SPS costs can be covered under the
3 The ‘Scheme for Temporary Agri- scheme due to EU state aid controls.13
Food Movements to Northern Ireland
(STAMNI)’ - also referred to as the retail A range of additional barriers would be
grace period - has mitigated some of erected should the Protocol’s provision be
the disruption to the supply of agri-food implemented in full:
products between Great Britain and 3 Pets travelling from GB to NI would
Northern Ireland. require a microchip, a rabies vaccination,
The scheme accounts for around 59% tapeworm treatment, an animal health
of all consignments and has prevented certificate as well as documentary and
730,000 checks to date. However, it identity checks.
has been closed to new entrants since 3 51% of veterinary medicines authorised
January 2021, thus meaning that not for use in Northern Ireland would
all firms can avail of this support. It be discontinued from the end of
is estimated that should the scheme 2022 if a solution is not identified to
be abolished, the number of checks additional batch testing and certification
required by the Protocol would increase requirements imposed on supplies
by approximately 300% from 6,000 per sourced in GB. The EU’s much-hyped
week to 25,000 per week.12 offer on medicines does not cover this
The EU legal action against the UK area nor address disruption to the trade
Government announced on 15 June in medical devices.14
2022 aims to end this grace period.

12
Department of Agriculture, Environment & Rural Affairs, 2022
13
‘‘The UK border: Post UK–EU transition period,’’ National Audit Office Report, 5 November 2021, The UK border: Post UK–EU transition
period (nao.org.uk)
14
DAERA, 2022, Poots comments on veterinary medicine movements | Department of Agriculture, Environment and Rural Affairs
(daera-ni.gov.uk)

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3 There would be international-style 3 Hops and hop products imported into


controls on the shipment of waste GB could not be legally be re-exported
between GB and NI with a significant to Northern Ireland under EU legislation
direct cost for the industry. on Marketing Standards. This provision is
3 A range of items would be prohibited not being enforced at present.
from being marketed in NI under new EU
regulations on single-use plastics. This
includes things like wet pipes, plastic
beverage cups and sanitary items.

The way forward


A
ll we want is the Protocol replaced devolution supported by both unionists and
by arrangements that restore our nationalists.
place within the United Kingdom The restoration of power-sharing based
and can command the support of upon a cross-community consensus rests
unionists as well as nationalists. with the Government.
That is not an unreasonable request. Free It is not sustainable to spend £1m per
and unfettered trade within the United day subsidising businesses to assist with
Kingdom is not an excessive demand, it is Protocol paperwork. This money would
the right of every citizen. be better used to fund pressures in our
If the Protocol is not resolved, then hospitals and helping hard pressed
Northern Ireland will be without a devolved households with the cost of living.
government. By resolving the Protocol
however, there is a great prize of stable

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CASE STUDIES

Some examples of the issues that have


been encountered.
We have compiled some of this material from
sources that are already publicly available.

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CASE STUDY 1 CASE STUDY 2


Name of business or organisation: Name of business or organisation:
Canonbury Products Ltd Walgreen Boots Alliance
Sector: Healthcare Sector: Healthcare
No. of employees: 35 No. of stores: 2,200 United Kingdom-wide;
Protocol problem(s) encountered: 78 in Northern Ireland

Canonbury Healthcare is the UK’s largest Protocol problem(s) encountered:


supplier of podiatry products, supplying The company has expressed concern that
to both the public and private sectors because of the Northern Ireland Protocol,
since 1983. it is not commercially viable for many
In March 2021, the company announced of its partner businesses to adapt their
its withdrawal from supplying the operations and continue serving this part
Northern Ireland market due to the cost of the United Kingdom. Some have already
and disruption generated by couriers stopped supplying medicines to Northern
being required to implement customs Ireland or have imposed price increases.
procedures on these goods under the In respect of medical devices, Walgreen
terms of the Protocol. Boots Alliance have had to absorb
Whilst Canonbury Products has since significant additional costs due to the
recommenced supplies to Northern Ireland, Protocol-based obligation to re-register
this has been, and continues to be, reliant many devices.
on the Government’s unilateral decision to Implications if not resolved
provide mitigations in relation to parcels. The organisation has warned that in
Even with the extension of the grace period the absence of existing derogations on
on parcels, the firm has advised that due medicines and related products, customs
to increased administrative and technical procedures and SPS requirements will
costs in respect of supplying into Northern impact the ability of many suppliers to send
Ireland it has had no alternative but to in the region of 300 products of animal
apply nominal price increases across a origin, including baby food, to Northern
range of products. Ireland as well as circa 5,000 parcel items.
Impact if not resolved:
If the existing grace periods cease to have
effect, and with the absence of alternative
arrangements, Canonbury Products has
warned that it will be unable to supply the
NI market. This will prevent the supply of
essential items such as scalpels, orthoses,
paddings and dressings as well as podiatry
drills. This will impact greatest on the elderly
and those with complex podiatry needs –
especially if they have diabetes, rheumatoid
arthritis, or other chronic conditions.

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CASE STUDY 3 CASE STUDY 4


Name of business or organisation: Name of business or organisation:
ADS Group Teva UK Limited
Sector: Aerospace, Defence, Sector: Healthcare
Security & Space No. of employees: 1,500 across the UK
Members:1,000 companies United Protocol problem(s) encountered:
Kingdom-wide; 90 in NI, with 10,000
employees Teva UK currently supplies over 620
speciality, generic and over-the-counter
Protocol problem(s) encountered: (OTC) medicines to Northern Ireland. In
ADS member companies in Northern 2020, four million packs were sold directly
Ireland have reported that since the in Northern Ireland, representing 2% of total
beginning of 2021 they have seen a UK volume.
2-3% rise in additional material burden The company has expressed concerns in
and 7-15% rise in logistics costs. They relation to the Protocol’s requirements.
also estimate that the requirement for These related primarily to the impact of new
Supplementary Declarations relating to and unnecessary arrangements in respect of
movement of goods from GB will increase quality control, batch release and a distinct
administration costs by between 10-15%. licensing regime for medicines produced
The ADS Group have also confirmed that in Great Britain for use in Northern Ireland.
some Aerospace, Defence, Security and Teva UK indicated that if implemented
Space companies have found that their these arrangements could force the
business models are not compatible with discontinuation of medicines in Northern
the types of relief available through the Ireland. It simply would not be commercially
Trader Support Service. It is also the case viable to maintain separate product licenses
that while relief can be claimed on goods - or market authorisations - for GB and NI
proven to remain in Northern Ireland, this is and meet the additional administrative and
impacting on cashflow and time. cost associated with this.
Implication if not resolved Implications if not resolved
ADS have outlined their desire for mutually In May 2022, Teva UK cautioned that EU’s
agreed solutions to this disruption proposals to ease disruption in the supply
and want to see aerospace companies of medicines under the Protocol did not
sourcing materials in GB for processing address every threat to future supply to
to be provided with an exemption from Northern Ireland.
the Protocol. Should the situation not be It warns that for products either granted a
addressed, it has warned that the ‘additional licence under the EU’s Centralised Procedure
costs and administrative burden placed on (CP) - including 48 medicines Teva currently
NI companies is not sustainable in the long- supplies to Northern Ireland – or which are
term.’ subject to this procedure in the future -
ADS have also noted that enforced changes most new patented medicines - a UK-wide
to business models as a result of these approach will still not be possible.
problems is resulting in a bypassing of GB This presents the risk of two separate packs
firms. This will continue to impact negatively being required for the GB and NI markets,
on these sectors in Great Britain. which is unviable economically for most
manufacturers and will inevitably lead to a
loss of supply to patients in Northern Ireland.

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CASE STUDY 5 CASE STUDY 6


Name of business or organisation: Name of business or organisation:
SDC Trailers Ltd AJ Power
Sector: Manufacturing Sector: Manufacturing
No. of employees: 650 No. of employees: 125 people across sites
Protocol problem(s) encountered: in NI, Sweden, South Africa, and Dubai
SDC is the UK and Ireland’s largest semi- Protocol problem(s) encountered:
trailer manufacturer, offering a wide range of
products and services designed to meet the AJ Power manufactures diesel generators
needs of operators across many different and exports 80% of its output to more than
industries. It has four manufacturing plants, 80 countries across the world. A further
based in Toomebridge, Magherafelt, Antrim 80% of components used in the production
and Mansfield. of these generators are supplied from
In June 2021, the firm told the introductory England, a trade flow that has been subject
inquiry into the operation of the Protocol to new and costly custom requirements
on Ireland/Northern Ireland in the House under the terms of the Northern
of Lords that the Protocol had placed Ireland Protocol. This equates to 15,000
a significant, costly and increasing components.
administrative burden on the company and Mr Ashley Piggott, Managing Director, has
its suppliers. stated that these arrangements have added
SDC are obliged on request to provide the a six-figure sum onto annualised overhead
Trader Support Service portal with a detailed costs of the company. For every shipment,
submission regarding the Harmonised AJ Power has absorbed an additional
Standard code, country of origin, cost and Protocol-related cost ranging between
weight of each part supplied from GB to NI. £30 and £50 regardless of the value of the
This is burdensome and as a result, extra item being supplied. There may also be
staff had to be hired and diverted from extra charges if products are deemed to
day-to-day operations. Given that suppliers have largely originated from outside Great
are continuously changing their sources Britain, under EU anti-dumping rules.
for goods, meeting the demands of rules Implications if not resolved
of origin alone are extremely difficult. The
company has also pointed to the strained AJ Power have indicated that the impact
relationships with suppliers as a result of of this additional cost and complexity
these administrative requirements. may threaten the viability of production
in Northern Ireland in the long-term. The
Implications if not resolved
company estimates that the extra direct cost
SDC have indicated that the disadvantage of the loss of the Trader Support Service
they face vis a vis companies in the rest of within the first six months could reach six
the United Kingdom will be compounded figures.
in the event that the volume of declarations
rises. This would result from existing
Government derogations on parcels being
withdrawn and recourse to provisions such
as fast parcel operators (FPOs) being lost.
Given that SDC’s records indicate 95%
of its manufacturing assembly operation
in Northern Ireland in connected with
producing trailers for customers in GB and
NI, the impact of the Protocol is entirely
disproportionate to the risk borne to the EU
Single Market.

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CASE STUDY 7 That is eight bits of paperwork - extra steps


Name of business or organisation: that I did not have before. That is a GB
Lynas Food Service supplier supplying to NI. That is the reality
on the ground. That is just one example.’’
Sector: Food and Drink
The firm have also outlined the particular
No. of employees: 480 challenges affecting smaller product lines,
Protocol problem(s) encountered: particularly in situations where food or drink
was produced outside the United Kingdom,
Giving evidence to the Northern Ireland for example orange juice from Spain. When
Affairs Committee in the House of that product now comes to a distribution
Commons in March 2021, Managing centre in GB, it is regarded for the purposes
Director, Andrew Lynas, gave following of NI trade as rest-of-world or as a third
example in relation to an English cheese country.
supplier that his company has been using
for twenty-five years: Implications if not resolved
‘‘If I was to tell you what it was like before, Lynas Foods have stated that the current
we would send a purchase order and we administration and barriers imposed by
would bring half a container or a container the Protocol have meant the company is
of that product in; seven days later, it is in ‘naturally being forced’ to look at a more
our warehouse and we are selling it to our all-Ireland or pan-European approach to
customers. trading. This will be of particular concern in
the event that existing retail grace periods
On 1 January, with the presumption of a come to an end. In such a scenario the
world with no grace period, because it is number of checks on agri-food products
seen as ‘at risk’ due to the fact we are selling will increase by approximately 300%
that product to southern Ireland, we now under estimated figures provided by the
have eight different steps that we have to Department of Agriculture, Environment
take for that exact same transaction. I do a and Rural Affairs.
purchase order.
• I now have to get an export health
certificate, which they have to pay for.
• We have to get a vet on-site; of course,
the movement assistance scheme means
they will get paid back.
• They then have to have a customs agent
to get an ENS and an IMP.
• They have to figure out the commodity
codes.
• They have to get a commercial invoice,
which they did not have to do before.
• There is a TRACES document to fill in.
• There is a CHED document to fill in.
• At the end of this, at some point, I have to
do a supplementary declaration from my
finance team.

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CASE STUDY 8 CASE STUDY 9


Name of business or organisation: Name of business or organisation:
Hillmount Garden Centre Target Transport
Sector: Horticulture Sector: Haulage and Logistics
No. of employees: 3 NI stores; circa Location: Randalstown, Northern Ireland
70 staff Protocol problem(s) encountered:
Protocol problem(s) encountered: In September 2021, Mr Mark Tait, Director
Since the end of the transition period, of Target Transport, provided MLAs with a
EU Sanitary and Phytosanitary (SPS) rules sobering account how paperwork imposed
continue to apply in NI under the Northern by the Protocol on shipments moving
Ireland Protocol. between Great Britain and Northern Ireland
Robin Mercer, owner of Hillmount Garden was affecting his business. He referenced
Centre, has described how despite a box one instance when he was obliged to
of seeds traditionally taking four days to submit declarations for 45 shipments in one
get from England to Northern Ireland prior day, despite only three ultimately destined
to the implementation of the Protocol, to travel to the Republic of Ireland.
that process is now taking in the region ‘‘I had to do declarations for all 45
of four weeks due to the administration shipments. That takes time. That’s
and paperwork involved. In cost terms, administration. That administration costs
Mr Mercer has previously provided an money.
indicative additional cost of £140 per box I’m spending sometimes 10 or 15 minutes
regardless of whether than product is per declaration. If you’re doing 30, 40 of
valued at £400 or £600. them a day, that takes a lot of time. We
Certified vegetable seed, including simply cannot cope with the pressure.’’
potatoes, are not be able to be marketed Implications if not resolved:
in Northern Ireland at all under the current
arrangements. Representatives of Target Transport have
previously indicated that the level of
Implications if not resolved bureaucracy and cost incurred as a result of
Local garden centres and nurseries in the Protocol may jeopardise the future of
Northern Ireland, including Hillmount, face their business within months.
reduced access to plant varieties available
elsewhere in the United Kingdom and
the prospect of increased cost that will be
passed on to the consumer. There is also
the danger that business models will shift
toward suppliers in the Irish Republic or the
EU Single Market.

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CASE STUDY 10 CASE STUDY 11


Name of business or organisation: Name of business or organisation:
Watson Flowers and Gifts McCulla Refrigerated Transport
Sector: Floral industry Sector: Haulage and Logistics
Location: Ballynahinch, County Down No. of employees: 225
Protocol problem(s) encountered:
Protocol problem(s) encountered:
McCulla Refrigerated Transport is a leading
Mr Stephen Watson, proprietor of Watson provider of Ambient, Chilled and Frozen
Flowers and Gifts recently confirmed logistics, with a fleet of over 100 vehicles.
that he had been forced to cut ties with It’s Managing Director, Peter Summerton,
suppliers in England due to the level of has expressed concern that the disruption
paperwork associated with the Northern caused by the Irish Sea border is dissuading
Ireland Protocol. He noted that many businesses in Great Britain from doing
businesses in GB were simply not willing business in Northern Ireland.
to fulfil the necessary requirements and on
occasions he had been left to arrange his In September 2021, he said:
own transport to collect goods. There were “How did government actually expect the
particular problems successfully sourcing protocol to work?
plants with soil-bedding. “Whenever you apply these international
Implications if not resolved rules to the domestic integrated supply
chain, it increases time, it increases cost, it
Issues around security of supply from GB increases complexity.
has forced this business to purchase goods “The feeling in GB is really clear, why would
through the Irish Republic or Holland, I bother starting trying to do business with
despite the cost of goods being generally Northern Ireland?
more expensive in these markets. Mr
Watson estimates that his general costs “It is too complex, too costly, it takes too
have risen by 40%, with the majority much time.”
of flowers have doubled in price. This The firm previously reported that it had
diversion of trade and impact for the created a team of six new staff to take
consumer belies the fact that this business customers through a checklist of 39 data
offers no threat to the EU single market. fields simply to ensure flow of goods
across the Irish Sea. An extra 14 staff had
been recruited to navigate the customs
requirements ushered in by the Protocol.
Mr Summerton spoken of situations where
lorries have been delayed in Dublin
because of the words “drumsticks” and
“eggs” appeared in the paperwork. It was
later clarified that the drumsticks were not
chicken but Swizzels sweets and the eggs
were Cadbury’s Creme Eggs.
Implications if not resolved
McCulla Transport have indicated that it
can move product from Northern Ireland
to Spain faster than supplying goods from
England to Northern Ireland. It has also said
these problems are not temporary, fails the
test of ‘unfettered access’ and will worsen
with the end of existing retail grace periods.

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CASE STUDY 12 the supply of M&S products from GB to


Name of business or organisation: NI, particular given the relatively small
Marks & Spencer quantities involved.

Sector: Retail M&S have stated their view that it should


be possible to identify and separate goods
No. of employees: 2,500 employees in going to Northern Ireland that will not
Northern Ireland; 21 stores go to the EU without the need to impose
Protocol problem(s) encountered: checks on those products. Marks & Spencer
Chairman Archie Norman has said in the
Giving evidence to the House of Lords Sub- absence of alternative arrangements the
Committee on the Protocol on 11 May 2022, Protocol ‘very threatening’ to the business.
Managing Director of Marks and Spencer
in Northern Ireland and the Irish Republic,
Sacha Berendji provided an overview of the CASE STUDY 13
added disruption and complexity facing GB
to NI trade flows as a result of the current Name of business or organisation:
arrangements: Woodland Trust

‘‘…the easements in Northern Ireland are of Sector: Environment


significant help but the impact is still fairly Protocol problem(s) encountered:
substantial, as we have already discussed. The Woodland Trust in Northern Ireland
It can take up to 20 people an hour to is a conservation charity responsible for
dispatch every vehicle with the correct the care of 50 woods across Northern
documentation to Northern Ireland. That Ireland. It also leads on a range of local and
number is eight hours for the Republic of community tree-planting initiatives.
Ireland vehicles.
As a result of the Protocol, approximately
…if the easements were not in place, for 35 plant and tree species are restricted
us every vehicle would take an extra seven from entering Northern Ireland from Great
hours, depending on the load, and up to Britain, including several native species.
20 people would be working on it, because Due to problems sourcing product from
every single product of plant or animal suppliers on mainland UK, the Woodland
origin that goes on a load to the Republic of Trust was forced to cancel an order for
Ireland needs to be certificated every single 22,000 trees and severing Northern
day.’’ Ireland’s participation in the Queen’s Green
There has also a been an impact on the Canopy tree-planting initiative.
consumer in terms of the withdrawal of Implications if not resolved
a number of product ranges, including
Christmas food to order. In total, 380 It is likely that continuing challenges to the
product lines were reported to have been security of supply of trees and plants from
prevented from sale in NI stores in January Great Britain will have a detrimental impact
2021. Concern has also been raised about on Northern Ireland’s net zero ambitions
the disproportionate impact of fresh and other environmental objectives.
labelling rules on goods travelling between Communities and pupils will not be
GB and NI and destined only for marketing able to benefit from the same rights and
in Northern Ireland. opportunities afforded to their counterparts
in other parts of the United Kingdom.
Implications if not resolved
The end of grace periods currently
protecting retail from the worst excesses
of the Protocol would inevitably impact

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CASE STUDY 14 CASE STUDY 15


Name of business or organisation: Name of business or organisation:
Veterinary Practice Walker’s Shortbread
Sector: Agriculture and Environment Sector: Food and Drink
No. of employees: 30 No. of employees:
Protocol problem(s) encountered: 1,600 United-Kingdom wide

This is a large multi- species practice Protocol problem(s) encountered:


serving clients across all farm sectors in In May, Walker’s Shortbread confirmed that
Northern Ireland. a commemorative tin of shortbread marking
They are concerned that from January Her Majesty the Queen’s Platinum Jubilee
2023 there is growing risk that all farm and would not be available for sale in Northern
veterinary medicines sourced from Great Ireland through its mail order business but
Britain will be classified as arriving from could be bought in the United States.
a third country and therefore subject to Implications if not resolved
individual batch testing. The Protocol has made checks and
These arrangements would be prohibitive paperwork so onerous, and delivery prices
and could have the effect of eliminating this so excessive, that British firms have stopped
route of supply. delivering to Northern Ireland, including in
Products such as the botulism vaccine areas covering national identity Without
imported from South Africa, as well as those alternative arrangements, this constitutes an
currently supplied and authorised from erosion of the rights of UK citizens living in
the Rest of the World, would be placed in Northern Ireland.
jeopardy. This would have a deep and far-
reaching impact on animal welfare, security
of supply, as well as the availability and cost
of veterinary services.
Implications if not resolved
51% of veterinary medicines authorised
for use in Northern Ireland would be
discontinued from the end of 2022 if the
Protocol’s requirements on additional batch
testing and certification for GB goods are
not removed. The EU’s current legislative
proposals do not address this issue.

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