Substantial Brexit funding needed in 2022 budget for food and drink companies

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FOOD Drink Ireland (FDI), the Ibec group representing the food and drink sector, today released its 2022 budget submission which calls for substantial funding for the sector from the adjustment reserve of the Brexit.

Paul Kelly, Director of FDI, said: “The food and beverage industry is deeply resilient but is now facing a major disruption in its markets due to Brexit while dealing with the impact of a global pandemic. The EU / UK trade and cooperation agreement introduced significant additional costs for Irish food and drink companies at every stage of production and distribution. In addition to Brexit-related increases in transport and logistics costs, Irish food and drink companies are also facing inflationary pressures in most cost categories due to a combination of macro external factors which include constraints global and national supply chain and raw material inputs as well as Brexit and Covid19.

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“The FDI’s 2022 budget recommendations are designed to ensure that Ireland’s largest indigenous manufacturing sector can control its cost base while innovating and improving both productivity and sustainability.”

The recommendations they would like to see included;
-Provide an additional 400 million euros to stimulate low-carbon investments in industry by increasing and expanding support to industry.
-Reduce the excise duty on alcohol by 7.5%, introduce a new excise exemption regime on artisanal cider and allow the cancellation of excise duties on alcohol on bad debts.
-Reorganize the commercial tariff exemption regime to incentivize food business operators and cold storage companies, as occupants of commercial property, to carry out maintenance work, improvements and renovations or investments essential energy savings.
-The ongoing review of the Employment and Investment Incentives Scheme (EIIS) is expected to modify the scheme to strengthen its support for start-ups in the Irish whiskey / spirits sector.

Seeking to implement these recommendations, they also highlight the Brexit Adjustment Reserve, which was agreed to last June, which allocated one-time aid of € 1 billion, to compensate for lost trade and preserve employment.

And I hope to use this state aid to accomplish the following;
-Introduce a state-supported export credit insurance scheme.
-Invest 300 million euros in competitiveness and commercial promotion.
-Keep EWSS and grant support under review, including for those significantly affected by Brexit.
-To extend the Revenue Warehousing Scheme to companies affected by Brexit.
– Extend the deduction for foreign income to more markets.
– Extend and refinance the “Customs Loan” subsidy program.

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