The North's economy "will be negatively affected" if the UK votes to leave the European Union, a former Northern Ireland secretary of state warned Thursday as Border-based businesses also voiced new fears about the prospect of border controls in the event of a Brexit.
Peter Mandelson believes there are "wide-ranging" risks for Northern Ireland if the UK exits the EU.
“Northern Ireland’s economy, security and its delicate peace process will be negatively affected should the UK vote to leave the EU,” Mr Mandelson said.
He said there was no guarantee that border controls would not follow a UK exit despite repeated assertions from the current Secretary of State, Theresa Villiers, that there would not be a need to establish new border check points.
The former secretary of state has argued that “the dark memory of border controls along the 310-mile Border loom large for those living in both Northern Ireland and the Republic”.
“I know businesses are deeply concerned about the considerable damage any controls would do to their trade. Northern Ireland exported £2.1 billion to the Republic of Ireland in the year 2014/15. And everyday, people who enjoy exploring all that the island of Ireland has to offer would be dismayed by the sight of new checkpoints.”
According to one small business owner, Warrenpoint-based David Russell, any new border controls would create a "massive upset" for his business.
Mr Russell, owner of GDK Drinks, said: “We’re a growing business and have aggressive plans to expand and increase our team. However added costs as a result of border controls and possible import tariffs could slow this progress.
“We are also be concerned about how it could affect the Northern Ireland hospitality trade, which is already fighting higher Vat rates compared to the Republic of Ireland. We need to see more people coming to Northern Ireland from the South to help ensure long-term sustainable growth for this sector.”
Surveyors in the North also say that Brexit would have a "negative impact" on the local commercial property market.
According to new research from the RICS (Royal Institution of Chartered Surveyors) the market in the North has been “relatively resilient’ despite the uncertainty surrounding the lead up to the UK referendum on June 23rd.
The RICS said investment enquiries for office space and retail space in Northern Ireland continued to grow in the first quarter of the year – albeit at a slower rate than at the end of 2015 .
But its RICS EU Referendum Paper highlights that almost two-thirds of local surveyors believe a Brexit scenario would have a negative impact on the commercial property sector while only 9 per cent said that it would have a positive impact.
