«Breaking News» Food prices could rocket under No Deal, Michael Gove acknowledges

Environment Secretary Michael Gove has accepted the price of staple foodstuffs could rocket in the event of a no-deal Brexit.

Responding to figures from the British Retail Consortium (BRC) which warned the price of cheddar cheese could leap 32 per cent, and beef by 29 per cent, Mr Gove said: 'It is one scenario but it is not the scenario we plan to go down.'

On the BBC this morning, Andrew Marr presented  Mr Gove with the figures, which were reached after the BRC applied World Trade Organisation (WTO) tariffs to the prices of everyday foodstuffs.

Asked: 'if there is no deal, will food prices in this country go up?', the environment secretary replied: 'I think there is a risk of that, yes.'

Mr Gove acknowledged the 'friction' of a no deal Brexit would increase the price of food 

The BRC analysis shows beef could increase five to 29 per cent; tomatoes could go up in price between nine and 18 per cent; and cheddar cheese could rocket between six and 32 per cent.

Mr Gove responded to the figures saying: 'It is one scenario but it is not the scenario we plan to go down.

'One of the things we can do when we leave the European Union is we can set tariffs at a level we think if appropriate, both to protect the consumer but also to look after the most vulnerable and important sectors of food production at home.'

He said the number were based on 'high' tariffs applied by the EU to imports from outside its boarders, and said he 'didn't think' that scenario would unfold under the current government.

'It is a scenario using one particular model but this government is not going down that route and therefore the figures mentioned would not apply.

But he acknowledged the 'friction' that would follow no deal would impose additional costs on food production.

The planned Brexit withdrawal on 29 March comes when the UK imports a lot of fresh, out-of-season, produce – 90 per cent of lettuce, 80 per cent of tomatoes and 70 of soft fruits come from, or arrive via, Europe. 

Increased tariffs, the devaluation of sterling and new regulatory checks would drive up the cost of fresh food and drink, which would be passed on to consumers, retail bodies warned.

Under WTO rules which would come into force under no deal, this would mean a 42 per cent tariff on imported cheddar, 46 per cent on mozzarella, 40 per cent on beef, 21 per cent on tomatoes and 15.5% on apples, the BRC said last year.

Mr Gove, who has said tariffs will be set tomorrow, and that the system would maintain 'as far as possible' price stability but also protect vulnerable areas of production. 

The tariffs would be 'temporary' in the event of new deal and would be replaced by a new trading relationship, the leading Brexiteer said.

Mr Gove (right) told Andrew Marr (left) that British politics was 'in a different realm' and said cabinet minister not respecting collective responsibility should keep their jobs 

He also told Mr Marr it was 'vitally' important to achieve a Parliamentary deal which avoids both no Brexit and no deal.

And he defended cabinet colleagues including Amber Rudd, Geg Clark, and David Gauke, who argued publicly in The Daily Mail against Mrs May's stated position of not extending Article 50, saying they should not be sacked 'because they're good colleagues'.

He went on: 'You can look at politics through the prism of the 20th Century or you can recognise that we're in a different realm now.

'We're in a unique set of circumstances now, and one can apply the sort of "virility" tests that were applied in the past, or we can make progress by being open t arguments to different parts of the party.

'And also remind everyone... that we have to honour that referendum agreement.'

Mr Gove said there was a 'solid majority' in the party and in Parliament for a deal, as long as elements of the Northern Irish backstop agreement were amended.

MPs are due to debate Brexit again next Wednesday and are expected to consider an amendment tabled by former Tory minister Sir Oliver Letwin and Labour's Yvette Cooper.

That would give Parliament the opportunity to delay Brexit and prevent a no-deal situation if there is no agreement with the EU by the middle of March.

Mr Gove refused to be drawn on whether members of the government should be expected to resign if they vote in favour of the Boles/Cooper amendment, saying only he would be doing everything in his power to encourage them to vote with the government.  

Link hienalouca.com

https://hienalouca.com/2019/02/24/food-prices-could-rocket-under-no-deal-michael-gove-acknowledges/
Main photo article Environment Secretary Michael Gove has accepted the price of staple foodstuffs could rocket in the event of a no-deal Brexit.
Responding to figures from the British Retail Consortium (BRC) which warned the price of cheddar cheese could leap 32 per cent, and beef by 29 per cent, Mr Gove said:...

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Dianne Reeves Online news HienaLouca





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