Alliance MLA says NI car industry facing the 'worst of every world' under Windsor Framework - amid warning new rules will hit consumers
An Alliance MLA has acknowledged that Northern Ireland’s car industry is facing “the worst of every world” under the Windsor Framework – as industry experts warned a Stormont committee jobs will be lost and consumers will pay more tax under upcoming changes.
David Honeyford also branded the consequences of the trading arrangements – which his party supports – as “a nonsense”. Alliance has consistently claimed that the arrangements provide Northern Ireland with the “best of both worlds”.
Representatives of all of Northern Ireland’s car franchise dealers told Stormont’s economy committee that car owners will pay more tax and said there would be “very very significant” consequences for the profitability of local companies and for jobs.
They want unfettered access to the UK market restored – as they can’t sell vehicles into Great Britain, and say there is “no market” for them in the Republic.
Not every type of vehicle that can be sold in Great Britain will be able to be sold in the province.
From January, vehicles registered in Northern Ireland must be an EU approved vehicle – while cars registered in Great Britain will follow less stringent rules from the UK government on vehicle emissions.
Industry bosses warned MLAs that choice will be reduced here – and consumers may have to go to Great Britain to but the car they want, with the resultant impact on local firms.
The changes are a result of the Windsor Framework – backed by Alliance and nationalist parties. However, during the evidence session Sinn Fein and Alliance pledged support for the industry over the issues it is facing.
David Honeyford questioned industry bosses on the current issues with the car market. He was told cars have to be specifically made for Northern Ireland – and while they can be sold into the Republic, they cannot be sold to the rest of the UK.
When told the local consumers could instead buys cars across the border in the Republic, the Alliance MLA commented: “So it’s the worst of every world for you”.
A National Franchise Dealers Association (NFDA) representative said that Northern Ireland is now “almost an island in our own right”. Mr Honeyford responded “collateral damage is what you said earlier”.
Mr Honeyford said it “seems like a nonsense, to be honest. If there’s anything we can do to… help and support, happy to do”.
DUP MLA Jonathan Buckley seized on Mr Honeyford’s comments. He told the committee: “The other myth that we constantly hear in this place is dual market access, coupled with ‘best of both worlds’.
“There’s been a bit of progress in this committee today. For the first time ever, Mr Honeyford has said that it seems like the worst of both worlds. Something that we’ve pointed out continually, time and time again”.
The Upper Bann MLA said that the prioritisation of the EU market by the government – with the endorsement of local parties – has seen the “prioritisation of 18 vehicles over 45,000 vehicles”.
He was referencing the number of sales into the Republic of Ireland of certain types of cars. The Windsor Framework was designed to stop a threat to the single market from goods entering the EU from Great Britain or further afield. He asked the industry figures if those 18 vehicles were traceable.
NFDA said that vehicles which go into the Republic have to be manually imported, with taxation paid separately – and there is therefore “complete traceability”.
Mr Buckley said there is no threat to the EU market – and asked how the group felt about sacrificing access to the EU market for access to the UK market.
An NFDA witness said: “There isn’t a market for us to chase in the South. Our market is here in Northern Ireland”.
DUP committee chair Phillip Brett called the regulations “ridiculous” and said the prioritisation of the EU market over the UK market by the government and local politicians was at the root of the problem, not Brexit itself.
From January 2026, tests on CO2 emissions in Europe change, while Great Britain will keep current rules.
Sinn Fein’s Emma Sheerin said the issue facing the automotive sector wasn’t a matter for the Assembly – but that they would “support” and “champion” the industry.
David Honeyford said the issue had been “politicised” before blaming Brexit and referencing Boris Johnson’s claim during the referendum that the NHS would get an extra £350m per week.