Belfast Telegraph

Northern Ireland manufacturing 'terrified' at prospect of a no deal scenario over Brexit, MPs told

By Michael McHugh

More than a quarter of manufacturers here say they are looking at setting up a base outside Northern Ireland following the UK's exit from the EU, it has been revealed.

And a no deal Brexit would be a complete and utter disaster, local companies insist.

More than 25% of firms surveyed by the Manufacturing NI representative group said they were considering expanding outside Northern Ireland to ensure a continued presence in the EU.

Many are "terrified" by the ongoing uncertainty as they try to plan for the future.

The lobby group's chief executive Stephen Kelly said he was not predicting factory closures here, and added that the separation also presented positive opportunities if it was well-handled.

But he warned: "No deal would be a complete and utter disaster."

He said Northern Ireland would be hardest hit in the by any impediment of trade with the Republic, with almost a fifth of cross-border commerce predicted to be lost.

Our economy is dominated by small and medium-sized enterprises.

The organisation representing manufacturers told MPs from the Northern Ireland Affairs Committee that smaller companies traded more on a cross-border basis than larger firms.

Mr Kelly added: "If we crash out, there is a responsibility on the UK Government then to put in a border."

He said under international rules, every single territory had to trade on the same basis, adding World Trade Organisation tariffs varied depending on the product.

Mr Kelly warned manufacturers were trying to make decisions without certainty on the Brexit situation.

"People are terrified of making the wrong decision and asking us and (Government jobs agency) Invest NI and a raft of others.

"This will make or break their business for the next 10 years and none of them can provide that."

DUP MP Ian Paisley sits on the committee and challenged some of the evidence from manufacturers.

He said: "If there is no deal, the one country in Europe that suffers the most is the Republic of Ireland."

He said Ireland would lose 3.8% of its GDP "overnight" if there was no agreement.

Belfast Telegraph

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.