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7,500 Irish Food and Drink Jobs at Risk After Brexit Hit on Sterling


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Old 28-12-2016, 20:04
James_Orton
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Some shocking news from Ireland on the back of sterling's fall. I can only see things getting worse for the Irish, before it gets better.

Hopefully Brexit won't hit them too hard.

http://www.foodingredientsfirst.com/...ompage=article
Irish mushroom growing farms have been closed down since Brexit amid warnings from Food and Drink Industry Ireland (FDII) that up to 7,500 food and drink sector jobs are at risk. At least 10 percent of Irish mushroom farms have been axed after farmers found themselves facing a crisis as they were tied to fixed contracts set in sterling.
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Old 28-12-2016, 20:16
Cheetah666
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Some shocking news from Ireland on the back of sterling's fall. I can only see things getting worse for the Irish, before it gets better.

Hopefully Brexit won't hit them too hard.

http://www.foodingredientsfirst.com/...ompage=article
Yes, a weak sterling with Britain still in the single market is bad for the Irish food and drinks sector. They need either a strong sterling or a hard Brexit - the first because it would maintain their existing markets, and the second because it would enable them to replace British buyers with domestic buyers. As things currently stand, they have the worst of both worlds.
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Old 28-12-2016, 20:22
James_Orton
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Yes, a weak sterling with Britain still in the single market is bad for the Irish food and drinks sector. They need either a strong sterling or a hard Brexit - the first because it would maintain their existing markets, and the second because it would enable them to replace British buyers with domestic buyers. As things currently stand, they have the worst of both worlds.
A hard Brexit is something the Irish are desperate doesn't happen

"The prospect of a hard Brexit is the biggest of all the threats facing Ireland"
http://www.irishtimes.com/opinion/pa...land-1.2916691
The remarks by the Minister for Foreign Affairs Charlie Flanagan in an interview with The Irish Times published today are evidence of a growing nervousness inside the Government about how the Brexit process is going to play out, and the potential consequences for Ireland, North and South.
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Old 28-12-2016, 20:28
Cheetah666
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A hard Brexit is something the Irish are desperate doesn't happen


http://www.irishtimes.com/opinion/pa...land-1.2916691
Speaking as one of "the Irish" I want a quick Brexit, and I don't care too much how hard it is. Its the pussyfooting around from your government which is damaging Irish exporters, if you'd just hurry up and go the economy could re-adjust. Ireland is one of the few countries which has a trade deficit with Britain, so trade between our two countries shrinking wouldn't harm us too much. Its the drop in sterling matched with the Irish market still being flooded with British produce which is driving small family businesses here to the wall.
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Old 28-12-2016, 20:50
Mr Oleo Strut
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Speaking as one of "the Irish" I want a quick Brexit, and I don't care too much how hard it is. Its the pussyfooting around from your government which is damaging Irish exporters, if you'd just hurry up and go the economy could re-adjust. Ireland is one of the few countries which has a trade deficit with Britain, so trade between our two countries shrinking wouldn't harm us too much. Its the drop in sterling matched with the Irish market still being flooded with British produce which is driving small family businesses here to the wall.
I have no confidence in the May government to handle Brexit efficiently, and it is daily becoming more apparent that the whole thing is a disaster, which will result in many unforeseen and damaging consequences.
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Old 28-12-2016, 20:55
James_Orton
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Speaking as one of "the Irish" I want a quick Brexit, and I don't care too much how hard it is. Its the pussyfooting around from your government which is damaging Irish exporters, if you'd just hurry up and go the economy could re-adjust. Ireland is one of the few countries which has a trade deficit with Britain, so trade between our two countries shrinking wouldn't harm us too much. Its the drop in sterling matched with the Irish market still being flooded with British produce which is driving small family businesses here to the wall.
Well you're in for a long wait then. it'll be 3 months before A50, then at least another 2 years at the minimum.

Expect another plunge in stirling in march and then economic armageddon closed the date the UK leaves.

I also noticed Hungary are keen to exploit the corporation tax exploit that the Irish have done so well with.

I can't imagine that does you any favours either, especially as the EU is trying desperately to "harmonise" the way taxes work (luckily it's only a drip drip tax harmonisation at the moment, but what will it cost Ireland in the future if they need help from the EU?).

Orbán slashes corporate capital gains tax to 9% — Hungary to offer lowest tax rate in Europe
http://hungarianfreepress.com/2016/1...ate-in-europe/
The Orbán government surprised the business world on Thursday, including the National Alliance of Employees and Employers, when it declared without any prior consultation that the country’s capital gains tax would be slashed from 19% to just 9% in 2017. Hungary’s dramatically reduced corporate tax rate of 9% makes it even more appealing than the already low corporate taxes paid in Bulgaria (10%), or t he 12.5% rate found in Ireland and Cyprus. The move will positively impact those larger companies in Hungary that have annual profits exceeding 500 million forints per year. Until now, their tax rate stood at 19%, but it will now be reduced to just 9%.
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Old 28-12-2016, 21:00
Cheetah666
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Yes, I know the timescale for Brexit. Do you get a warm glow of comfort from knowing that its driving small rural farmers in Ireland out of business? Go you.

I don't care about Hungary's corporation tax, they're never going to be a serious competitor to Ireland for FDI even if they cut it to 0%.
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Old 28-12-2016, 21:09
MartinP
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That's the equivalent of around 100,000 job losses in the UK so a big deal.
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Old 28-12-2016, 21:12
MARTYM8
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So post Brexit no one will eat Irish mushrooms anymore?

Has sterling never fluctuated against the euro in the latter's 16 year history. Is Brexit responsible for every business's poor currency hedging when your biggest market uses a different currency and that goes down or up?

Maybe someone has been eating too many mushrooms - of the magic variety.

Easier answer - bring back the punt and fix it to sterling as it was for decades. Otherwise deal with it.
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Old 28-12-2016, 23:29
Happ Hazzard
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The Irish sold their soul to the EU, initially things flourished for them, but now they are paying the price. They made their bed, now they must lie in it.
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Old 29-12-2016, 00:11
Slojo
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We had the Irish posters on here a few days ago crowing over how Ireland was doing a great job attracting financial companies away from London to Dublin so not too worried about UK jobs were they. We shouldn't be worried about them.

The food & drink workers and mushroom farmers can get bank jobs
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Old 29-12-2016, 09:53
James_Orton
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We had the Irish posters on here a few days ago crowing over how Ireland was doing a great job attracting financial companies away from London to Dublin so not too worried about UK jobs were they. We shouldn't be worried about them.

The food & drink workers and mushroom farmers can get bank jobs
It's very worrying for Ireland. They have no friends in the EU thanks to their corporate tax rules and will now be forced into a far worse relationship with the UK thanks to sterling being lower.

The posters who post about the downfall of the UK are basing it on emotional responses and opinion pieces rather than fact based reasoning.
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Old 29-12-2016, 10:17
Icaraa
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It's very worrying for Ireland. They have no friends in the EU thanks to their corporate tax rules and will now be forced into a far worse relationship with the UK thanks to sterling being lower.

The posters who post about the downfall of the UK are basing it on emotional responses and opinion pieces rather than fact based reasoning.
Indeed, and Ireland doing well helps us.
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Old 29-12-2016, 10:19
MartinP
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I wonder if our favourite Irish poster will comment on this?
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Old 29-12-2016, 10:22
jmclaugh
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The mushrooms part is old news, but the point is the fall in sterling makes imports more expensive and that will by definition impact those exporting to the UK.
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Old 29-12-2016, 10:51
Shalamara
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I'm sorry if anyone loses their livelihood but those of us who voted Leave did so in the belief that the outcome would be better for the 64m people of the UK - so whilst regretting the loss of 7,500 jobs in another country, it doesn't really change anything.
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Old 29-12-2016, 12:31
Jellied Eel
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Problem-

...after farmers found themselves facing a crisis as they were tied to fixed contracts set in sterling.
Those kinds of contracts rarely end well, especially if they're multi-year. If they'd negotiated an initial rate, and then periodic rate reviews, they'd not be in this mess.

Of course that depends on how much negotiating power suppliers have given large buyers have a bad habit of trying to screw suppliers to the floor. And also customers, ie raising prices due to weak sterling, but if suppliers are on fixed contracts, the costs haven't increased.. just their profits.
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Old 29-12-2016, 12:36
Mark_Jones9
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Indeed, and Ireland doing well helps us.
Ireland has been doing well at our expense by enabling corporate tax avoidance.
According to Irish posters on previous threads Ireland also wants to do well by poaching UK based financial services companies come Brexit.
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Old 29-12-2016, 13:35
Eurostar
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Ireland has been doing well at our expense by enabling corporate tax avoidance.
According to Irish posters on previous threads Ireland also wants to do well by poaching UK based financial services companies come Brexit.
Virtually nobody in Ireland wanted Brexit to happen. It was met by absolute dismay across the board.
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Old 29-12-2016, 13:54
andykn
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I'm sorry if anyone loses their livelihood but those of us who voted Leave did so in the belief that the outcome would be better for the 64m people of the UK - so whilst regretting the loss of 7,500 jobs in another country, it doesn't really change anything.
Wrong. Ireland is a big export market for us, 7,500 fewer people being able to afford our stuff will change things for us for the worse.
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Old 29-12-2016, 14:28
MartinP
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Wrong. Ireland is a big export market for us, 7,500 fewer people being able to afford our stuff will change things for us for the worse.
Have you not heard? They'll all be working for Google, Amazon and the banks. All good for the UK!
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Old 29-12-2016, 15:10
Mark_Jones9
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Wrong. Ireland is a big export market for us, 7,500 fewer people being able to afford our stuff will change things for us for the worse.
The mushroom farm workers could maybe get another job?
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Old 29-12-2016, 15:14
MARTYM8
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How many of these 7500 jobs are actually held by Irish citizens anyway. Not many I expect given most Irish young people with any nous have emigrated replaced by cheap labour from the rest of EU and elsewhere,

These may be jobs in Ireland but I expect most aren't Irish jobs!
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Old 29-12-2016, 15:16
James_Orton
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Wrong. Ireland is a big export market for us, 7,500 fewer people being able to afford our stuff will change things for us for the worse.
It'll change things far worse for Ireland.

Not to mention
Up to 40% of Ireland’s multi-billion-euro farming and fishing export markets are at risk in a worst-case Brexit fallout scenario, warns Agriculture Minister Michael Creed

“We also have virtually an all-Ireland economy when it comes to agri and fishery, which is really complicated — 38% by volume, 36% by value of Irish fish endeavour is caught in UK territorial waters.

“Put it like this: If the UK goes and decides to stand by article 50 [the clause triggering secession from the EU] negotiations that one of its primary objectives in the negotiations is to take lock, stock, and barrel of its territorial waters with it, that’s a real problem for us.”
Looks like there is going to be a massive problem for Ireland. Perhaps a few subsidiaries of banks can make up to having their entire fisheries and agriculture markets destroyed?
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Old 29-12-2016, 15:56
andykn
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The mushroom farm workers could maybe get another job?
Have you not heard? They'll all be working for Google, Amazon and the banks. All good for the UK!
Ah yes, because Ireland has such a good commuter network from rural areas to Dublin and Galway, I'd quite forgotten.
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