The chairman of Marks & Spencer warned that trade in Northern Ireland could become an “operating nightmare” and that the burden of red tape would increase as a result of concessions from Brussels.
Archie Norman has written to Lord Frost, Cabinet Office Secretary, saying the European Commission’s plans could lead to “increasing friction and costs and the level of ambiguity and scope of the dispute.” high”.
Brussels tried to prevent the triggering of Article 16 by offering to reduce checks on goods entering Northern Ireland from the UK. The proposals include labeling rules to ensure that British products do not cross the border into the Republic of Ireland.
However, Norman says that “the committee’s practical understanding of the impact of controls on the modern food supply chain is very limited. What seems like a simple administrative requirement has turned into an operational nightmare.”
The M&S boss said the labeling requirement would add £9m to the annual cost of the 90m products the retailer ships to Northern Ireland. He added that the certification requirements mean that veterinarians need to inspect 95% of the goods they sell, which would delay products arriving in stores by another 1.8 days. the risk of a sharp increase in raw food waste.
The retailer employs 2,092 employees at 21 stores in the province. It has a 7% share of the Northern Ireland grocery market, twice the share in the UK. M&S said last week it had paid an additional £13 million over the past six months in relation to European Union border issues. The retailer has closed 11 stores in France, blaming a “long and complicated export process” for fresh food after Brexit.
