NEW:
UK food industry has asked Government to waive or suspend aspects of competition law to allow for it to coordinate food supply in the event of a disruptive No Deal Brexit at the end of October. Would be illegal, they say, at present.
bbc.com/news/business-…
Leading food suppliers and retailers have repeatedly asked the Government for clarity on this matter - and there are precedents for the waiving or changing of competition law during fuel, oil and financial crises.. /2
One top retailer told the BBC: “at the extreme people like me and people from Government will have to decide where lorries go to keep food supply chain going. And in that scenario we’d have to work with competitors, and the Government would have to suspend competition laws”. /3
“in event of no-deal disruption, if Govt wants food supply chain to work together to tackle likely shortages – decide where to prioritise shipments–have to provide cast-iron written reassurances competition law won’t be strictly applied” Food Drink Fed, COO Tim Rycroft to BBC /4
...”Without such assurances, any such collaboration would risk incurring large fines from the CMA. We asked for these reassurances at the end of last year and, despite support from Defra, we’re still waiting” FDF’s Rycroft continues, expresses hope Gove will sort. /5
Government response:
“The UK will be leaving the EU on 31 October and our top priority is supporting consumers and businesses in their preparations for Brexit.
“We are working closely with the food industry to support preparations as we leave the EU.”
Government assumption is that there will not be an overall shortage of food in the UK after Brexit, and acknowledge there is a mechanism in Competition Act for exceptional and compelling public policy exceptions - used in defence and fuel supply
However food industry doesnt seem to share this level of reassurance, sees need to coordinate to direct supply as sufficiently plausible after No Deal as to want this in writing..
November No Deal occurs at time when food supply especially depends on EU imports, & warehouses full
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.