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Brexit: Government pledges £355m to ease GB-NI trade Brexit: Government pledges £355m to ease GB-NI trade
(32 minutes later)
The government is to spend up to £355m on a new system for moving goods into Northern Ireland from the rest of the UK.The government is to spend up to £355m on a new system for moving goods into Northern Ireland from the rest of the UK.
The system is required as a consequence of the NI part of the Brexit deal.The system is required as a consequence of the NI part of the Brexit deal.
From 1 January, goods entering NI from GB will need customs declarations.From 1 January, goods entering NI from GB will need customs declarations.
The Trader Support Service (TSS) will effectively see the government acting as a customs agent on behalf of businesses.The Trader Support Service (TSS) will effectively see the government acting as a customs agent on behalf of businesses.
Details will be announced later on Friday by Cabinet Office Minister Michael Gove and NI Secretary Brandon Lewis. Cabinet Office Minister Michael Gove gave details of the plan on a visit to Portadown, County Armagh, on Friday.
The TSS is due to be up and running in September and will be free to use.The TSS is due to be up and running in September and will be free to use.
Initially traders will register with the service and receive advice on what Brexit will mean for their business and the next steps they should take.Initially traders will register with the service and receive advice on what Brexit will mean for their business and the next steps they should take.
They will be helped to understand what information they need to collect about the goods they will be importing.They will be helped to understand what information they need to collect about the goods they will be importing.
TSS will then use this information to complete import declarations on behalf of importing companies.TSS will then use this information to complete import declarations on behalf of importing companies.
It should help to prevent what would have been a significant new administrative burden for many firms.It should help to prevent what would have been a significant new administrative burden for many firms.
Mr Lewis said: "It is a unique service that will ensure that businesses of all sizes can have import processes dealt with on their behalf, at no cost." Speaking to BBC News NI, Mr Gove said the plans would give NI businesses the "potential to have the best of both worlds".
"Businesses will have guaranteed unfettered access to the rest of the United Kingdom, but it's also the case that we're making sure that there is no border infrastructure on the island of Ireland," he said.
"So Northern Ireland businesses can have access to the European single market."
Mr Gove added: "Sometimes when I'm in Scotland I find that Scottish businesses are jealous of the fact that Northern Ireland businesses have the best of both worlds."
The minister was also asked about the ongoing trade negotiations with the EU, and said he believed they were on course for a "successful outcome".
He said: "I think all the evidence is that we are making progress with the EU but whether or not there is, the UK govt will be ready to ensure that the NI protocol is implemented.
"We will be in a position to take advantage of new free trade agreements and Northern Ireland will be benefitting from those as much as the rest of the UK."
Northern Ireland Secretary Brandon Lewis said the TSS was a unique service that "will ensure that businesses of all sizes can have import processes dealt with on their behalf, at no cost".
However it does not remove all the looming difficulties for GB-NI trade.However it does not remove all the looming difficulties for GB-NI trade.
For example agri-food products being imported from GB will have to go through an expensive certification process unless a special deal can be reached with the EU.For example agri-food products being imported from GB will have to go through an expensive certification process unless a special deal can be reached with the EU.
In its negotiation with EU, the UK government has suggested a 'trusted trader' system for supermarkets when moving their products from GB to NI.In its negotiation with EU, the UK government has suggested a 'trusted trader' system for supermarkets when moving their products from GB to NI.
Northern Ireland manufacturers import much of their components and raw materials from GB and have welcomed the TSS plan.Northern Ireland manufacturers import much of their components and raw materials from GB and have welcomed the TSS plan.
Economy Minister Diane Dodds welcomed the government's announcement but said there were still "plenty of things to iron out". NI's Economy Minister Diane Dodds welcomed the government's announcement but said there were still "plenty of things to iron out".
She added that she would ask Mr Gove when the executive would get to see the legislation on unfettered access for Northern Ireland firms to the UK's internal market.She added that she would ask Mr Gove when the executive would get to see the legislation on unfettered access for Northern Ireland firms to the UK's internal market.
"It's really important for NI firms that we have that access," she said.
Asked if what the government was doing pointed to more bureaucracy and costs, she said: "Today is an example of investing in services to try to reduce the impacts of that protocol.Asked if what the government was doing pointed to more bureaucracy and costs, she said: "Today is an example of investing in services to try to reduce the impacts of that protocol.
"We need to see the outworkings of all of this but today is an important day - there's been a lot of money announced.""We need to see the outworkings of all of this but today is an important day - there's been a lot of money announced."
However the minister stressed that NI's place in the UK internal market was "not negotiable".However the minister stressed that NI's place in the UK internal market was "not negotiable".
Stephen Kelly, from Manufacturing NI, said: "This commitment to cover customs costs is a very welcome first step but there is more still to be done."Stephen Kelly, from Manufacturing NI, said: "This commitment to cover customs costs is a very welcome first step but there is more still to be done."
He cited the agri-food issue and VAT as areas where more clarity was needed.He cited the agri-food issue and VAT as areas where more clarity was needed.
"It remains the case that agreement on the future relationship between the UK and EU will remove many potential existential issues so we hope that there is an increased focus on ensuring success in those negotiation for all our sakes.""It remains the case that agreement on the future relationship between the UK and EU will remove many potential existential issues so we hope that there is an increased focus on ensuring success in those negotiation for all our sakes."
Seamus Leheny of the Freight Transport Association also welcomed the news, saying it was "hugely significant".Seamus Leheny of the Freight Transport Association also welcomed the news, saying it was "hugely significant".
"We've consistently said for a long time that the government should help with the cost of transition, because we're facing the biggest change in how we move goods between GB and Northern Ireland in a lifetime and the burden of that shouldn't fall on the shoulders on businesses here." However he added there were still issues to address around the movement of food and market access.
However, Mr Leheny added there were still issues to address around the movement of food and market access.
It is also still not clear what new processes or barriers could apply to Northern Ireland consumers buying goods online from GB suppliers.It is also still not clear what new processes or barriers could apply to Northern Ireland consumers buying goods online from GB suppliers.
Speaking on the BBC's Good Morning Ulster programme, Mr Leheny said: "Under the protocol, there'll be no right of access, let's say, for NI hauliers to travel and deliver goods into the Republic of Ireland.
"So it protects the movement of goods around the island of Ireland, but doesn't deal with how we actually move those goods. So still a few things to work out, but definitely today this is good news for the industry."
Technology investment
Guidance on this "non-freight" trade will have to be provided in the next few months.Guidance on this "non-freight" trade will have to be provided in the next few months.
Technology investment
A procurement exercise for the TSS has been launched with the government committing £50m for the establishment and first phase of the service, with the full contract worth up to £200m.A procurement exercise for the TSS has been launched with the government committing £50m for the establishment and first phase of the service, with the full contract worth up to £200m.
A further £155m will be available for technology investment to digitise and streamline the new processes.A further £155m will be available for technology investment to digitise and streamline the new processes.
At the end of the Brexit transition period on 31 December, Northern Ireland will continue to follow EU rules on agricultural and manufactured goods, while the rest of the UK will not.At the end of the Brexit transition period on 31 December, Northern Ireland will continue to follow EU rules on agricultural and manufactured goods, while the rest of the UK will not.
Additionally, the whole of the UK will leave the EU's customs union but Northern Ireland will continue to enforce the EU's customs code at its ports.Additionally, the whole of the UK will leave the EU's customs union but Northern Ireland will continue to enforce the EU's customs code at its ports.
It is this which will mean new checks and processes for goods moving into Northern Ireland from other parts of the UK.It is this which will mean new checks and processes for goods moving into Northern Ireland from other parts of the UK.