Tuesday, 07 June 2016 10:55

Brexit means issues

Written by  Peter Burke
KPMG's global head of agribusiness, Ian Proudfoot. KPMG's global head of agribusiness, Ian Proudfoot.

KPMG's global head of agribusiness is warning NZ companies exporting to Europe to be aware of what could happen if Britain decided to quit the European Union (EU).

Ian Proudfoot, just home from a visit to Ireland, says there was much discussion there about Britain exiting the EU (Brexit). A vote on this is due on June 25 and Proudfoot says the polls are evenly poised -- the vote could go either way.

Other polls show 60% of British farmers want out of the EU, but 88% of economists polled are strongly in favour of Britain staying in.

Proudfoot says even if Britain votes to stay in the EU, its relationship with the other 27 member countries will never be the same. If Britain decides to go it alone there are implications for NZ.

"The message for me was that companies doing business with Europe should start thinking about the implications of Brexit," Proudfoot told Rural News.

"The European market is highly volatile and the risk of that volatility getting greater hasn't gone away yet. If NZ companies have their trading base in Britain, as most do, that could be a significant challenge for them if the UK was no longer part of a free common market."

Proudfoot says if Britain decides to exit the EU it would probably create an opportunity for NZ. Britain would probably look to its old Commonwealth allies such as Canada, Australia and NZ to get a special trading agreement in place. But he believes if Britain exits, NZ would lose the leverage it has with Europe by virtue of its special relationship with Britain.

More like this

Risky business

OPINION: In the same way that even a stopped clock is right twice a day, economists sometimes get it right.

Bagrie bags banks

OPINION: Noted economist and self-promoter Cameron Bagrie took one look at KPMG's recently released Financial Institutions Performance Survey on banks and zeroes in one key number that suggests banks are so risk averse in this country that they are probably stifling growth and innovation.

Organic Dairy Hub liquidation process continues

The liquidation of failed co-operative Organic Dairy Hub is continuing, and net proceeds will be distributed to farmer shareholders once final tax obligations have been met, according to the liquidators.

Featured

$52,500 fine for effluent mismanagement

A Taupiri farming company has been convicted and fined $52,500 in the Hamilton District Court for the unlawful discharge of dairy effluent into the environment.

Ospri brings Bovine TB testing in-house

The move to bring bovine TB testing in-house at Ospri officially started this month, as a team of 37 skilled and experienced technicians begin work with the disease eradication agency.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Arable advocacy?

OPINION: Spare a thought for the arable farmer, squeezed on one side by soft global prices and on the other…

Gaslight much?

OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter