SCOTLAND’S FOOD and drink industry leaders have written to the Prime Minister calling for immediate action to avoid 'enormous damage' to the industry post-Brexit.

With less than 60 days to go until the Brexit transition periods ends, the sector's key demand is for a six-month grace period to allow it to adjust to new trading rules without fear of significant border disruption, enforcement action and loss of further revenue.

A total of 11 industry bodies signed the open letter to Boris Johnson, urging him and his government to agree to a number of measures which they describe as 'critical' to the survival of many businesses and the supply chain and jobs that they support.

 

“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,” read the letter. “To be clear, there is no system available that can cope with the increased demand in EHCs likely to be required from January 1.”

The letter also called for a Government 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 three-month period but to be reviewed thereafter. This, said the industry bodies, would provide reassurance and confidence at a time when businesses are fragile.

Turning to the seafood supply chain, the letter called for the smooth passage of goods across the channel and at other ports, and a commitment from the UK Government that its newly procured ferry service capacity could be used for exporting seafood consignments if required.

In their final ask, the industry bodies once more stressed the need to add food and drink sector roles to the Shortage Occupation List, highlighting the sector’s reliance on overseas labour: “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 1, 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.”

The letter highlighted the ‘devastating’ impact Covid-19 has had on many businesses across the industry and through the supply chain, revealing that the latest assessment was a £3 billion loss of revenue to industry this year alone.

Addressing growing concerns over a no-deal Brexit it read: “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.

“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.”

The letter, copied to the Secretary of State for Scotland and the Secretary of State at DEFRA, was signed by:

  • Scotland Food and Drink chief executive, James Withers;
  • Food and Drink Federation Scotland chief executive David Thomson;
  • National Farmers’ Union Scotland chief executive Scott Walker;
  • Quality Meat Scotland chief executive Alan Clarke;
  • Scottish Agricultural Organisation Society chief executive Tim Bailey;
  • Scottish Association of Meat Wholesalers executive manager Martin Morgan;
  • Scottish Bakers chief executive Alasdair Smith;
  • Scottish Salmon Producers Organisation chief executive designate Tavish Scott;
  • Scottish Seafood Association chief executive Jimmy Buchan;
  • Scottish Wholesale Association chief executive Colin Smith;
  • Seafood Scotland, head Donna Fordyce.