Limerick business concern after Boris Johnson declared prime minister

CONCERN for local business has been expressed following Boris Johnson's election as British prime minister.

“Things are riskier here today than they were yesterday” was the reaction of Kemmy Business School economist Dr Stephen Kinsella.​

Former journalist Mr Johnson beat his Conservative leadership rival Jeremy Hunt comfortably by almost two-to-one in the race to be the most senior figure in the party – and be extension Prime Minister.

Although the arch-Brexiteer’s election was almost certain, there are now huge fears of Britain leaving the European Union without a deal on October 31.

“The biggest problem we are going to have in Limerick is protecting our agri-food market and our financial services. We are strong on agri-food and financial services. But all of these businesses are risked by Brexit fundamentally. It’s a risk not just for Limerick, but for the Mid-West and the entire country,” Dr Kinsella said.

He said if companies were not prepared for a No-Deal Brexit, they need to be now, as it is riskier than ever.

“No-one really knows what form it will take. The most likely thing at the end of October is another extension. But you never know. The one thing we can look on is his [Boris Johnson’s] record as foreign secretary which was an unmitigated disaster. Ineffectual is the nicest word you can use for it. Ultimately, he may prove to be just as ineffectual as a prime minister,” the economist told Business Leader.

For his part, Mr Johnson pledged to have Brexit completed by October 31.

Many companies which have a base in Limerick are exposed to the British market.

It’s unclear the impact any No Deal Brexit may have.

But local businesswoman Helen O’Donnell believes any hard Brexit could copperfasten its employment base here.

She said: “I’d be confident having these companies in Limerick and Ireland is a good thing, as they would now have a very secure European base, and this brings certainty for them. Perhaps we will be the market depending on what happens with Brexit, but this uncertainty is not good for business.”

Dr Kinsella predicted that the former London mayor could be the “shortest lived prime minister in British history”.

Ms O’Donnell said: “You have to wonder where things are going in England. Things like this are happening all over the world, but it’s very concerning when it is so close to us and we have all that uncertainty. It’s bound to impact on our economy.”

Meanwhile, the Drinks Industry Group of Ireland has warned a No-Deal Brexit could have a “recession-type” effect on the local drinks and hospitality sector. Here, the hospitality industry employs almost 7,000 people.