Mr. Thomas Hunter McGowan:

There are two aspects involved. I will speak about the planning process, while Mr. Gough will discuss the research we are conducting in conjunction with the Economic and Social Research Institute and Central Statistics Office. On the planning element, we have prepared a Brexit fact sheet and produced a Brexit readiness voucher. We have asked companies to consider the impact on their business if one of the four freedoms were to be lost or affected in any way. I refer to the freedom of movement of people, goods and capital, respectively, and the right to establish a service in another jurisdiction. Companies need to consider first whether changes to or loss of any of the four freedoms would have an impact on their business. That sets the parameters for them and from there, we consider how we could deal with the issue. This can be done in a number of ways.

Mr. Gough will discuss the worst-case scenario in which World Trade Organization, WTO, tariffs would apply. In that context, we can also identify what the WTO tariff is for specific products. The principal point we are making to companies is that they should look at the product they are making as innovation is probably a factorial response of how they can deal with Brexit, simply because tariffs can be altered significantly through innovation. For example, by removing the salt, sugar or fat content of a product, a company could find that a much lower tariff level applies. Alternatively, a business may be able to use existing ingredients to make a different product that is not subject to tariffs. We are not saying tariffs will be imposed, we are presenting a worst-case scenario. That is what we are working towards.