Eamon Southwell, principal of Belfast based advice firm Marlborough Place warned that the uncertainty surrounding the bill and the UK’s relationship with the EU is unsettling for businesses.
“The protocol is an advantage giving access to both markets but the problem with the government is they are not listening to Northern Ireland - they have gone into this without fully thinking about it.”
Last month, prime minister Boris Johnson secured a 74-vote majority for the bill, which if passed will give government the power to scrap parts of the post-Brexit deal between the UK and the EU.
The protocol forms part of the Brexit deal and keeps Northern Ireland in the EU's single market for goods.
Brussels responded to the bill by restarting legal proceedings against the UK and threatening to use “all measures at its disposal”, including a potential trade war, if the UK acted to unravel the protocol.
This is the real crisis that needs the attention of the politicians in Northern Ireland – how to help families who can’t afford to buy food — Chris Bryans, Richmond WealthChris Bryans, senior partner at advice firm, Richmond Wealth, who have bases in London, Belfast and Holywood in Northern Ireland told FTAdviser the issue of implementation of the Northern Ireland protocol is being used for political ends.
“The opportunity presented by the Northern Ireland protocol whereby Northern Ireland is both inside the EU single market and inside the UK market is something widely recognised as beneficial.”
Not everyone in the sector has concerns around the impact the bill might have on the UK economy however.
A spokesperson for Canada Life, who does not have an office in Northern Ireland, but sells its products there, said they are not expecting a negative fallout from the bill but that they “will continue to keep an eye on the developing situation.”
Single market
In addition to the current uncertainty, Southwell also expressed disappointment that Northern Ireland is not in the single market for services pointing to the fact that Belfast is a tech hub where the cost of doing business could be cheaper than Dublin.
Bryans agreed with Southwell on this and said that it was disappointing from a financial services standpoint that Northern Ireland was not in the single market for services.
“This could very easily have allowed Belfast, Newry and Derry to capture a lot of the jobs that have been instead relocated to Dublin, Paris and Amsterdam,” he said.
In Bryans’ experience, a lot of clients are of the view that the protocol in its current form is broadly favourable although there are some things that could make it operate more smoothly.
“The six counties of Northern Ireland seem to be on a path towards inclusion, prosperity and a more peaceful future – one that provides opportunity and recognises a shared culture and history. Most people would recognise we should not permit this bright future to be derailed over the relatively small risks represented by trade passing through Belfast and Larne.”
“The challenge is in the approach taken by the two sides which prolongs uncertainty, promotes confrontation and seeks to drive a wedge between opinions in Northern Ireland when what we need is a functioning [Stormont] executive that is focused on helping those most affected by the cost of living crisis," he added.
Bryans also made the point that a local MLA (member of the legislative assembly) recently approached Richmond Wealth’s Holywood office and asked it to support a food bank nearby because they had seen a large increase in demand from working families in the area who cannot make ends meet.
“This is the real crisis that needs the attention of the politicians in Northern Ireland – how to help families who can’t afford to buy food, especially when this will be exacerbated by the schools finishing and school dinners stopping,” he said.
A source of tension since it came into force in 2021, the protocol has been designed to preserve the Northern Ireland peace deal - the Good Friday Agreement.
Opponents of the bill, including former prime minister Theresa May and the EU have said if passed the legislation would be a breach of international law.
Ireland’s foreign affairs minister, Simon Coveney also said the bill is a breach of international law and that it will damage the UK’s reputation describing it as “unnecessary UK unilateral action when partnership and compromise is on offer from the EU.”
The bill is expected to face tough opposition in the House of Lords, however none of the Tory leadership contenders — including former chancellor Rishi Sunak, trade minister Penny Mordaunt and foreign secretary Liz Truss — have committed to scrapping it.
jane.matthews@ft.com
