Ibec: Brexit results threat to jobs and businesses already

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The currency crisis sparked by the result of the Brexit referendum has led Ibec to warn of the intense strain being placed on exports.

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3 August 2016 | 0

Ibec, the group representing Irish businesses here and around the world, has warned of the chaos already being caused by the shock Brexit result. Many key export businesses are already reeling, Ibec said, leaving jobs under threat.

The warning comes amid the results of a survey highlighting the currency strain on exporters following the UK’s vote to leave the European Union. Businesses are moving quickly to manage the more severe elements of pressure, but an urgent and targeted national response is essential, Ibec said.

The survey of 450 businesses reveals:

  • 45% of businesses see the sharp fall in Sterling’s value as their main concern
  • Exchange rate volatility, weaker investor confidence and competitiveness against the UK are the three main challenges
  • 33% of businesses identified cheaper UK imports as the biggest risk to their business
  • Only 9% of businesses have Brexit contingency plans in place
  • 24% of exporters have currency hedging arrangements in place – many of which are due to expire in the coming weeks and months
  • A renewed focus on competitiveness was identified as the most important Government policy response required

“Individual businesses have been slow to talk publicly, but the feedback from members is clear and unambiguous,” said Ibec’s director of policy Fergal O’Brien. “Businesses and jobs are under threat.

“The Brexit strain is manifest and intense. Without action to address competitiveness pressures, hundreds of millions of euro worth of exports will be lost, along with thousands of Irish jobs.

 

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