Mr. Aidan Flynn:

I am delighted to present to the committee today on issues of major concern to our members. The Freight Transport Association Ireland, FTA Ireland, is a not-for-profit membership trade association representing some of the largest freight distribution, logistics and passenger operators in Ireland, with more than 25,000 employees and 12,000 commercial vehicles operating between them. From our establishment, our members have demanded that FTA Ireland develop and implement an industry-wide standard called TruckSafe. That facilitates a path to continuous operational compliance, but also provides recognition for commercial fleet operators in the so-called own account and haulage sector who meet their minimum legal operational obligations.

Brexit has mandated that we define and appreciate the supply chain in all its efficiencies and complex distribution channels and relationships. Key to the challenge of dealing with change such as will be caused by Brexit is to stay competitive, develop strategic plans and implement these plans with confidence to pre-empt and manage the change. A core objective of FTA Ireland is to provide our members with up-to-date guidance and information on operational compliance and standards that make this process easier. Promoting the highest standards of compliance and professionalism through our TruckSafe standards help drive this culture within our membership.

In 2017, FTA Ireland published our Brexit position paper. Its key recommendations are still relevant today. These include avoiding checks at the Border, preserving the Common Travel Area, ensuring seamless transport links between Ireland and the UK, preserving mutual recognition of documents, qualifications and licences to limit disruption to road transport and logistics operations and, most important, ensuring a seamless transition to the post-Brexit era. We commend and support the Government for the work done to date on ensuring Irish interests are heard and understood in the UK and at EU level.

Uncertainty remains the main cause of concern for the freight, distribution and logistics sector as Brexit day, 31 October, gets ever closer. FTA Ireland continuously and consistently engages with our members through briefings, seminars, meetings. We have also developed publications and guidance notes to raise awareness of the implications of Brexit, with emphasis on encouraging the development of contingency plans. Due to the uncertain and protracted political situation in the UK, the costs, in both resources and monetary terms, to develop contingency plans create a challenge to keep industry focused on preparing for the post-Brexit trading environment. According to the recently published Managers Guide to Distribution Costs 2019, respondents estimated that they allocated 606 hours per company to preparing for Brexit in 2018, equating to taking one person out of their business for more than 75 days or 15 working weeks. Companies anticipate the number of hours allocated will increase to 720 in 2019 or the equivalent of 18 working weeks. This, however, is more complicated for the small and medium enterprise, SME, sector, which includes the majority of haulage businesses. Approximately 13,500 trucks operate an international haulage licence out of a haulage fleet of 18,000 heavy goods vehicles in Ireland. The average fleet size is slightly more than five vehicles. The sector is driven by high-volume, low-margin business and is struggling to allocate time and resources, which operators do not have, to prepare for Brexit.

Ireland stands to be affected the most due to our geographic location and reliance on the UK, not just as a trading partner but as a link to continental Europe. While the focus has been on looking to new markets, we must not negate the importance of the UK as a market for Ireland. In 1973, almost 55% of the total value of exports from Ireland went to Great Britain. By 2018, according to data from the Central Statistics Office, CSO, this reliance had reduced significantly to 11% of total exports, worth approximately €14 billion. It is not all about exports, however. Imports are vitally important to the Irish economy. Some 22% of imports, worth €18 billion, came from the UK in 2018.