Tag Archives: food supplies

Too little too late? No-deal Brexit planning shakes service suppliers

FILE PHOTO: Protesters demonstrate against the possible stockpiling of medicines and food in the event of a no-deal Brexit in London, Britain. Aug 22, 2018. REUTERS/Peter Nicholls/File Photo

y Elisabeth O’Leary

LONDON (Reuters) – From Britain’s hospitals and schools to its prisons and armed forces, firms supplying essential public services have been asked by the government to outline plans for a no-deal Brexit.

But with exit day set for March 29, Britain’s Prime Minister Theresa May has yet to strike a deal to leave the European Union which is acceptable to parliament, leaving the companies worried that the government is doing too little too late.

“The government has written to some of us asking us ‘what are you doing in preparation for a no-deal?’ – which is timely, at eight weeks to go,” one industry source told Reuters, speaking on condition of anonymity.

“I have never been in such an unknowing place in all of my corporate life,” the source added.

Private firms including Babcock, Capita, Serco, G4S, Mitie and Compass play a central role in providing Britain’s public services, which means they have to procure medicines, toiletries, food, spare parts and labor, much of which come from the EU.

Britain began outsourcing in the 1980s and private firms now carry out work with contracts valued at 250 billion pounds ($324 billion) for the government each year.

But their role has come under scrutiny since the collapse of Carillion last year, sparking a debate about how much public work should be done by private contractors.

Britain’s government has allocated 2 billion pounds funding to support Brexit preparations for 2019/20 which reaches across 25 government and arms-length bodies for both “deal” and “no-deal” scenarios. 

NO-DEAL NERVES

While the government says it is confident it will strike a deal with the EU, companies worry that may not be the case. If Britain exits abruptly, new customs checks could lead to major delays at ports with a knock-on effect on the supplies needed for them to provide day-to-day services.

“Companies are getting more and more nervous (about a no-deal Brexit),” a second industry source said, echoing fears raised by Serco’s CEO Rupert Soames who in December described the British business climate as “bad and getting worse”.

“I am increasingly worried we are now in a place where people are talking about supply chains and trying to guarantee them. But beyond stockpiling, nobody actually knows what no-deal might mean,” another source in the sector told Reuters.

A survey last week showed that factories had stockpiled goods in January at the fastest rate since records began in the early 1990s in case of a chaotic Brexit.

“Leaving the EU with a deal remains the government’s top priority – but in December, we took the decision to step up no deal planning to ensure we are fully prepared,” a government spokesperson said of its plans.

Providers of services for the defense sector are among those who have been asked to share contingency plans.

Three sources said they had received a letter from the Ministry of Defence’s (MoD) Chief Commercial Officer Andrew Forzani last week asking about their efforts.

“As part of our no deal preparations, we are talking to suppliers to ensure any potential challenges or impacts are addressed. This is routine contingency planning,” an MoD spokesperson said.

($1 = 0.7710 pounds)

(Reporting by Elisabeth O’Leary; Editing by Georgina Prodhan and Alexander Smith)

Economic downturn, Islamist attacks cause hunger to spread in Nigeria

By Stephanie Nebehay

GENEVA (Reuters) – Nigeria’s economic slowdown, compounded by Boko Haram attacks, could mean 5.5 million people needing food aid in the volatile northeast by next month, double the current number, the United Nations warned on Friday.

As government troops advance against the militants, the somewhat better access for aid workers under military escort to Borno and Yobe states has exposed “catastrophic levels” of suffering and a “vast regional crisis”, according to the U.N. refugee agency UNHCR.

Inflation and soaring food prices come at a time when people have little left from the last harvest, the U.N.’s World Food Programme (WFP) said.

“Because of Nigeria’s economic downturn, the number of hungry people could double in the northeastern states that are already so heavily afflicted by the conflict,” WFP spokeswoman Bettina Luescher told a news briefing.

“Our experts are warning it could go as high as 5.5 million people by next month,” she said. “The drop in oil prices and sharp rise in the cost of imported staples has compounded the years of violence that these poor people had to suffer.”

WFP has delivered food to 170,000 people in northeastern Nigeria, but hopes to reach 700,000 by year-end, Luescher said. It is also providing aid to 400,000 people in the three other Lake Chad Basin countries – Cameroon, Chad and Niger.

Nigerian Oil Minister Emmanuel Ibe Kachikwu said on Thursday that the OPEC country’s crude output had fallen to 1.56 million barrels per day (bpd) as persistent militant attacks have taken out around 700,000 bpd.

Medecins Sans Frontieres (MSF) said in late July that severely malnourished children are dying in large numbers in northeast Nigeria, the former stronghold of Boko Haram militants where food supplies are close to running out. The aid agency warned of “pockets of what is close to a famine”.

UNHCR spokesman Adrian Edwards said on Friday the situation remains dangerous and volatile, following an attack on an aid convoy last month. “There have been frequent ‘hit and run’ incidents by militants, including suicide bombings, attacks on civilians, torching of homes, and thefts of livestock.”

Armored vehicles and military escorts are urgently needed to provide protection for aid workers, he said.

“We have seen adults so exhausted they are unable to move, and children with swollen faces and hollow eyes and other clear indications of acute malnutrition,” Edwards said.

(Editing by Mark Heinrich)