Industry & Business

Budget must help food & drink sector maintain competitiveness

 Breaking News
  • Arkphire Secures New Investment IT solutions and networking company, Arkphire, has announced that Bregal Milestone, a private capital firm, has completed an investment into the business. The investment by Bregal Milestone comes from their new €400 million pan-European fund dedicated to investing in high-growth European companies. Typical commitments from Bregal Milestone range from €20 million to €60 million. Arkphire provides [...]...
  • Government Investment in Research & Development Amounts to Over €750 Million in 2018 The latest figures on Government investment in research and development (R&D), published by the Department of Business, Enterprise and Innovation, show that over €750 million is estimated to have been invested in R&D in 2018. The data in The Research and Development Budget 2017-2018 publication is compiled from a comprehensive survey of thirty Government Departments [...]...
  • Smart Dublin in Partnership With Enterprise Ireland Award 21 New Innovation Contracts Approximately €700,000 is to be awarded to companies under Enterprise Ireland’s Small Business Innovation Research (SBIR) initiative which will enable them explore innovative solutions to address challenges faced by Local Authorities. 21 companies have been awarded Phase One funding to progress the feasibility of their solutions. Phase One funding will allow each recipient to carry [...]...
  • Tourism Industry Barometer Reflects Buoyant Year But Hints at Brexit Concerns Tourism performance throughout 2018 continues to be on a strong footing, according to the latest Fáilte Ireland Tourism Barometer. The survey of more than 500 tourism businesses around the country shows over half of the tourism industry is reporting their business to be up, with two thirds (64%) saying that tourism agency supports have been [...]...
  • Glanbia to Acquire SlimFast For $350 Million Glanbia, the global nutrition group, has agreed to acquire SlimFast and other brands for $350 million from the owners KSF Holdings LLP and HNS Intermediate Corporation. SlimFast is a leading weight management and health & wellness brand family distributed primarily in the food, drug, mass and club (FDMC) channel in the US and UK. It [...]...

Budget must help food & drink sector maintain competitiveness

Budget must help food & drink sector maintain competitiveness
August 24
09:00 2017

Food Drink Ireland (FDI), the Ibec group that represents the food sector, has launched its Budget 2018 submission which calls on Government to introduce a series of measures so that the sector can maintain its competitiveness and achieve its growth potential against the backdrop of Brexit and a significant weakening of sterling.

In order to support businesses, FDI said funding must be provided over a three year period to help companies trade through any period of disruption, adapt and succeed into the future. The resources required will be in the region of 5% of the value of current annual export sales to the UK by Irish agri-food, or €600 million over three years. This would be funded from both government and EU sources to allow the Irish Government to introduce investment aids to support Irish companies invest in enabling technology, management training, plant renewal and expansion, refinancing, market development and innovation to regain competitiveness following single market fracture. These resources, where appropriate, should be available to both exporters and smaller Irish producers which risk being displaced by cheaper UK imports in their home market.

FDI Director Paul Kelly stated: “Almost 40% of our food and drink exports (€4.1bn) go to the UK. Our industry has already been severely impacted by exchange rate exposure, with the value of trade to the UK reduced by €570m in 2016. The continued weakening of Sterling will cause further reductions to the value of exports as well as job losses. Budget 2018 must support our efforts to maintain strong markets in the UK, as well as ensuring that food companies in the domestic market remain competitive against imports and the threat of cross-border shopping. To do this we need to keep business costs under control. At a time of such uncertainty, government also needs to avoid ill-considered public health measures such as soft drink taxes and proposals to introduce deposit return schemes for packaging. To support the wider food, beverage and hospitality sector, the 9% VAT rate needs to be maintained and alcohol excise reduced by 3.5%.”

The FDI Budget 2018 submission calls for:

Brexit proofing

Funding for Brexit mitigation, amounting to €600m over three years.

Changes to the EU State Aid Rules.

Increased funding for state agencies.

More trade support and market opportunity measures.

The 9% reduced VAT rate in hospitality to be maintained.

Consumer taxation

Reduce alcohol excise by 3.5%.

Existing VAT rates to be maintained.

No tax on soft drinks.

Proposals to introduce a deposit return scheme for packaging should be opposed.

About Author

editor

editor

Related Articles

New Subscriber





Subscribe Here



Advertisements



















National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories



Upcoming Events

  • No upcoming events
AEC v1.0.4