Brexit fears delay plans for brewery
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PLANS for a multimillion-pound brewery and visitor attraction in the heart of Inverness have been put on hold – because of Brexit.
The political and economic uncertainty of the UK quitting the European Union – as well as a possible second Scottish independence referendum – have caused the husband and wife owners of the Glen Mhor Hotel to defer the plans they had for their Ness Bank business.
Jon and Victoria Erasmus received planning permission in September 2015 to build a glass-fronted brewery, restaurant and visitor centre beside the hotel.
It was the second time of asking for Mr and Mrs Erasmus, who were initially turned down because of concerns over parking and the design of the building, which one objector branded an eyesore.
However, council planners eventually backed the proposals saying the scheme could bring new jobs, increase tourism and provide an interesting new building on the river frontage.
At the time, Mr and Mrs Erasmus said they believed the plans could generate millions of pounds for the local economy.
This week Mrs Erasmus told the Courier they were still “totally committed” to seeing the project through, but that current events had given them pause for thought.
“As a private family business it’s a huge investment for us at any time, regardless of anything else that would be happening,” she said.
“When it happens it will have an impact on the current business so we have had to think carefully in any case about when exactly the best time to get things under way would be.
“Particularly for myself, though, Brexit and a possible second independence referendum are giving a bit of a concern and I do want to know more about what the impacts could be there before we go ahead.
“There’s so much uncertainty and I just want to see a little bit more of where we’re going to be reassured before making any final decisions.”
The couple have invested heavily in their Inverness business in recent years, doubling the size of the Glen Mhor Hotel and Apartments in the five years between 2011 and 2016 through the purchase of a number of neighbouring guest houses.
And in general, Mrs Erasmus said they couldn’t be happier with how business is going.
“Inverness is of course at the heart of a really fantastic area that tourists still very much want to come to and even after the crash in 2007
Nevertheless her Brexit doubts chime with similar fears raised by many local businesses and other organisations in recent weeks and months.
University of the Highlands and Islands principal, Professor Clive Mulholland, told a Brussels conference in November he was concerned at the risk of his institution being sidelined in EU collaborative projects.
And Emmanuel Moine, chairman of Inverness Hotels Association as well as general manager of the Glen Mhor Hotel, has talked about the serious impact of the potential loss of EU labour on the hospitality sector.
Cawdor farmer and agricultural commentator Richard Jones said there were also concerns across his own sector.
“Whether it’s raising livestock or growing crops, you really need to know at least roughly two to three years in advance what’s happening so that you can plan effectively,” he said. “At the moment everything is very much up in the air, which is very difficult to cope with.”
And last week the Federation of Small Businesses published a study where 40 per cent of their members expressed fears that Brexit would impact on their ability to grow.
Inverness economist Tony Mackay said: “Brexit is undoubtedly a worry for businesses in the tourism industry and those who export goods to other EU countries.
“I don’t expect it will have much of a short term impact on their turnover and profits during the period to 2019, when the negotiations should be concluded, but I can understand why businesses like Glen Mhor are worried about longer term investments.
“Indyref2 creates more uncertainties because England and the rest of the UK is by far the biggest market for Scottish exports. Those could fall substantially if Scotland becomes independent.
“I believe that many businesses in the Highlands will postpone plans for expansions and other investments until the expected impact of Brexit becomes clearer.
“That implies less work for the construction industry and fewer jobs during the period to 2019.”
