Politics

Retailers’ no deal reality check

Published

5 years ago

January 29, 2019

THE HEADS of the UK’s major food retailers, including McDonald’s, M & S and Asda, have written to MPs and dramatically spelt out their view of the risks of leaving the EU without an agreement.

The warning comes shortly after the revelation that Britain has begun stockpiling food, fuel, spare parts and ammunition at military bases in Gibraltar, Cyprus and the Falklands in case of a no-deal Brexit.

With all contingency plans routinely labelled ‘Project Fear’ by those Brexiters stuck on transmit instead of receive, the retailers have taken a significant risk in sticking their collective head above the parapet by trying to address a substantial issue which is rather glossed by those proclaiming the benefits and underplaying the downside of a crash out Brexit.

The letter is backed by the British Retail Consortium, which represents over 70% of Britain’s retailers by turnover.

The Government said that it was taking special measures to minimise the impact of a no-deal Brexit on supermarkets’ suppliers and insisted that food was not going to run out as a result.

“The government has well-established ways of working with the food industry to prevent disruption and we are using these to support preparations for leaving the European Union.”

The Food and Drink Federation, which represents thousands of food processors and manufacturers, has said a no-deal Brexit would be a “catastrophe”, with uncertainty undermining investment and constraining businesses’ ability to plan and export.

DEAL OR NO DEAL: THE LETTER

On behalf of our businesses and the wider food industry, we want to highlight to you the challenges for retailers and the consequences for millions of UK consumers of leaving the European Union without a deal at the end of March. While we have been working closely with our suppliers on contingency plans it is not possible to mitigate all the risks to our supply chains and we fear significant disruption in the short term as a result if there is no Brexit deal. We wanted to share with you some practical examples of the challenges we are facing.

Our supply chains are closely linked to Europe – nearly one-third of the food we eat in the UK comes from the EU. In March the situation is more acute as UK produce is out of season: 90% of our lettuces, 80% of our tomatoes and 70% of our soft fruit are sourced from the EU at that time of year. As this produce is fresh and perishable, it needs to be moved quickly from farms to our stores.
This complex, ‘just in time’ supply chain will be significantly disrupted in the event of no deal. Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays; Government data suggest freight trade between Calais and Dover may reduce by 87% against current levels as a result. For consumers, this will reduce the availability and shelf life of many products in our stores.

We are also extremely concerned about the impact of tariffs. Only around 10% of our food imports, a fraction of the products we sell, is currently subject to tariffs so if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices. The UK could set import tariffs at zero but that would have a devastating impact on our own farmers, a key part of our supply chains.

Our ability to mitigate these risks is limited. As prudent businesses we are stockpiling where possible, but all frozen and chilled storage is already being used and there is very little general warehousing space available in the UK. Even if there were more space it is impossible to stockpile fresh produce, such as salad leaves and fresh fruit. Retailers typically store no more than two weeks’ inventory and it becomes difficult to restock stores if the supply chain is disrupted. We are also attempting to find alternative supply routes but there are limited options and not enough ferries, so this could only replace a fraction of the current capacity.

We are extremely concerned that our customers will be among the first to experience the realities of a no deal Brexit. We anticipate significant risks to maintaining the choice, quality and durability of food that our customers have come to expect in our stores, and there will be inevitable pressure on food prices from higher transport costs, currency devaluation and tariffs.

We are therefore asking you to work with your colleagues in Parliament urgently to find a solution that avoids the shock of a no deal Brexit on 29 March and removes these risks for UK consumers.

Community

Social housing plans for Cleddau Bridge Hotel site backed

Published

5 hours ago

April 23, 2024

Bruce Sinclair Local Democracy Reporter

A SCHEME to build 38 affordable and social housing units on the site of a fire-ravaged former Pembrokeshire hotel has been backed by senior Pembrokeshire councillors.

Pembrokeshire County Council’s Cabinet, meeting on April 22, supported a contract with developer Castell Group Ltd for the mix of affordable homes and social housing units at the Cleddau Bridge Hotel site, Pembroke Dock.

Members, in a report presented by Cabinet Member for Planning & Housing Delivery Cllr Jon Harvey, heard Castell had approached the council’s housing service to determine whether there is an interest in working with them to bring forward the development as a social/affordable housing site.

Castell Construction Ltd specialises in the construction of affordable / social housing, typically for registered social landlords across south Wales, and hopes to build 12 one-bedroom flats, 15 two-bed houses, five three-bed, two four-bed, and four two-bed bungalows.

The development package would be part-funded from the housing revenue account, the remainder from the Social Housing Grant and/or second homes premium for affordable housing if it becomes available for the Housing Service to use in this manner.

Cllr Harvey – who moved approval – said the scheme was expected to provide £230,000 a year in rentals income, describing it as “an excellent opportunity to work with a proven developer for extra social housing in an area of proven need.”

Deputy Leader Cllr Paul Miller said he was supportive of the scheme, as was local member Cllr Joshua Beynon, saying: “It’s a bit of an eyesore at the moment, if we can bring this site back into meaningful use, and in an area where there is a need, I’m all in support of this.”

Members backed senior officers be delegated powers to enter into the works contract, and to have powers to proceed with the land acquisition.

If a subsequent planning permission is secured for the site, the homes could be built by autumn 2026.

In a prime location at one of the entrances to Pembroke Dock, the former Cleddau Bridge Hotel has been derelict since a fire in March 2019, which brought emergency services from as far afield as Ammanford, Aberystwyth and Swansea.

Community

County Hall to offer space for community banking

Published

5 hours ago

April 23, 2024

Bruce Sinclair Local Democracy Reporter

A CALL for Pembrokeshire County Council to potentially change its banking arrangement with Barclays, after it closed its Haverfordwest branch has been turned down, but County Hall is to offer space for community banking.

Barclays Bank, on the town’s High Street, is to close on May 10.

The council has had a banking services contract with Barclays since 2013.

Councillor Huw Murphy, in a notice of motion heard by Pembrokeshire County Council’s Cabinet meeting of April 22, asked the council to review its banking arrangements with Barclays following the announced closure.

e said the loss of a branch “not only impacts upon town centres and businesses but also disproportionately impacts the elderly who are less likely to embrace on-line banking options”.

A report for Cabinet members said, in terms of the impact on Pembrokeshire residents, Barclays has said that it is “not leaving Haverfordwest and [will] continue to provide face-to-face support for those who need it” via community locations.

Two options were presented to Cabinet: to retender the banking services contract, and, the favoured, to work with Barclays to ensure a community location is set up in Haverfordwest.

Members heard the costs associated with moving to a new banking service provider could be in excess of £50,000.

For the second, favoured option, members heard Barclays was in discussions with the council about a location for potential community banking.

Cabinet Member for Corporate Finance Cllr Alec Cormack, after outlining the risks in the report for members, and moving the notice be not adopted, said he had “considerable sympathy” with Cllr Murphy’s notice.

He told councillors there was a glimmer of light for banking arrangements in the county, with an agreement now signed for two ground floor rooms at County Hall, Haverfordwest, to be used for community banking.

From April 25, the rooms will be available on Wednesdays, Thursdays, and Fridays, members heard.

Cabinet Member for Planning & Housing Delivery Cllr Jon Harvey also said he had “a lot of sympathy” for the motion, adding: “It’s excellent news a deal has been struck to occupy the ground floor rooms three days a week; hopefully this will mitigate, to a certain amount, the closure.

“If we can work with the respective banks to get a community-type approach let’s move forward.”

Politics

Next stage of £19m Haverfordwest interchange backed

Published

5 hours ago

April 23, 2024

Bruce Sinclair Local Democracy Reporter

THE SECOND stage of building Haverfordwest’s near-£19m transport interchange has been backed, with senior councillors hearing it could cost the council more to not support it.

The transport interchange, which includes an integrated bus station and construction of a new multi-storey car park, is part of a wider series of regeneration projects in the county town.

The total cost of the scheme in the approved budget is £18.881m, £1.987m from Pembrokeshire County Council; the remainder, £16.894m, from an already-awarded Welsh Government grant.

To date, £3.425m has been spent on advanced works, including the demolition of the old multi-storey car park and a temporary bus station.

Members of Pembrokeshire County Council’s Cabinet, meeting on April 22, were recommended to approve the award of the Stage 2 construction contract for the Haverfordwest Transport Interchange.

The report for members listed two simple options for Cabinet, to authorise the award of a contract, recommended, or to not.

For the latter it warned: “It is envisaged Welsh Government will withdraw the funding awarded and the council would need to repay grants received to date; £10.322m has been received to date of which £3.376m has been offset against expenditure.”

It added: “Cost to cease this project could cost PCC more in terms of grant repayment and any capital work required to make good. PCC match contribution for the project is forecast as £1.987m of the £18.881m.”

Planning permission for the interchange was granted in 2022, with a temporary bus station constructed that year and the old multi-storey building demolished in 2023.

That year, members of the county council’s Cabinet agreed a temporary car park will be sited on the demolished remains of the old multi-storey car park until the Haverfordwest Public Transport Interchange – delayed as no compliant tender had been found at the time – is built.

Speaking at the meeting, Deputy Leader Cllr Paul Miller said: “The interchange is an important part of the regeneration of Haverfordwest, it will not regenerate Haverfordwest on its own, it is part of a wider process. The alternative to us being engaged is we simply allow it to decline and fail.”

He said the interchange was about “making it easier to visit Haverfordwest,” making parking provision “really straightforward, making it easy and convenient as possible”.

Cllr Miller said not progressing with the scheme would risk the grants already obtained, meaning the council could potentially foot the bill for costs to date, at a greater level than progressing.

He said the cost options were a near-£2m subsidised council involvement for the whole scheme or the £3m-plus spent to date if the scheme was ended, which would leave the car park as it is now.

“It’s pretty reasonable that if they give us the money and we don’t build a transport interchange they’ll be looking for that money back,” Cllr Miller said.

He said previous figures from parking revenue – back in 2019 – amounted to £100,000 a year; and could be expected to at least double on a “like-for-like” basis following the increase in parking charges.

Members, after a private and confidential session over the actual contract details, agreed to proceed with the scheme, awarding the contract to Kier Construction Western and Wales.