London, UK: The government’s proposed Retained EU Law bill, making its way through Parliament risks the UK supply chain.
The cost and potential scale of the changes risk creating trade barriers which could impede the movement of goods and slow the UK’s economy, said David Wells, chief executive, Logistics UK, in a letter to the prime minister.
“Britain’s logistics businesses keep the UK trading and are driving the country’s economic recovery by reinforcing existing trading relationships and establishing new ones. But with at least 4,000 EU laws across around 500 policy areas affected by the REUL [Retained EU Law ] Bill, the impact of its implementation will be significant,” Wells said.
Shane Brennan, chief executive, Cold Chain Federation, has previously warned of the risk: “I wish ministers would recognise that there is far more risk involved in this strategy than there is opportunity.
Wells said: “Our members operate on very narrow margins, and have already absorbed significant costs as a result of the UK’s departure from the EU. Coupled with the ongoing uncertainty over what legislation will be retained, removed or improved, and how those changes will need to be implemented and when, it is clear that logistics businesses are increasingly concerned about the scale of the task ahead.
“Logistics is, by its very nature, flexible and adaptable, but implementing new trading processes and adapting to new regulatory conditions will take time and money. The lack of clarity over what will need to change, and by when, is causing great uncertainty across our industry, a sector which is at the heart of all trading relationships both domestically and internationally,” Wells said.
“Trade benefits from smooth border processes, simple procedures and fewer regulatory differences for logistics workers or vehicles. Any changes need to deliver clear benefits, manage the scale of change effectively and recognise the attendant costs and time required to implement and bed down new systems and processes – assuming the necessary IT solutions are available.”
“It is vital that the approach taken is careful and considered and that we do not rush through changes which duplicate effort or disadvantage our sector, and the UK’s consumers. We need a clear timeline for the changes which will be required to protect the UK’s highly-interconnected supply chain, while minimising unnecessary change and delivering clear, positive benefits to UK PLC.
“Logistics UK and its members remain committed to keeping the UK’s trading relationships open and effective, but need the assistance of government to ensure that industry has full insight of the plans being considered, and a meaningful feedback process which will enable discussion and debate. Our priority must be to ensure goods continue to move smoothly across the UK’s borders for the benefit of consumers and business,” Wells said.
