UPDATE 2-UK supermarkets seek urgent action on Northern Ireland supplies

* Three-month grace period ends March 31

* Supermarket chiefs say current proposals are unworkable

* CEOs says disruption inevitable if solution not found

* British PM Johnson says there are "teething problems"
(Adds comments from Boris Johnson and Michael Gove)

By James Davey

LONDON, Jan 13 (Reuters) - Britain's leading supermarket
groups have warned the government that "urgent intervention" is
needed to prevent significant disruption to Northern Ireland
food supplies in the coming months.

Britain is no longer part of the European Union's single
market and customs union, but Northern Ireland has a foot in
both camps as part of the UK's customs territory while still
aligned with the EU's single market for goods.

Under the Northern Irish protocol, which covers post-Brexit
trade between Britain and Northern Ireland, supermarkets selling
into the territory have a three-month grace period to adapt
their supply systems to the new trading reality.

Since the turn of the year, however, some supermarkets in
Northern Ireland have had shortages of fresh goods usually
imported from Britain because they have struggled to shift to
new processes and bureaucratic procedures.

The bosses of retailers including Tesco,
Sainsbury's, Asda and Marks & Spencer
have written to Cabinet Office minister Michael Gove, warning
that the situation could worsen.

In the letter, seen by Reuters, they said it was essential a
long-term solution is agreed with the EU before the grace period
for simplified controls ends on March 31.

"All our businesses and suppliers have invested
significantly in the last few months to avoid disruption, but
that will become inevitable if the proposals governing movement
of food from Great Britain to Northern Ireland are adopted," the
letter said.

"We recognise the European Commission needs to see increased
compliance to support the concessions it granted through the
Northern Ireland protocol, but the current proposals, increased
bureaucracy and certification in such a short timescale are
unworkable."

WORKING GROUP

The chief executives called on Gove to create a dedicated
working group to co-ordinate government agencies to integrate
customs and food controls.

"It also requires an open discussion with the EU explaining
why we can't accommodate changes to the current approach to
transporting food to Northern Ireland but stressing we are
working towards a robust system as quickly as possible," the
letter said, urging the government and EU to agree that more
time is required to implement a new system.

Gove said on Wednesday that a dedicated team has been set up
and was working to find a solution.

"We will make it clear to the European Commission what the
consequences would be if supermarkets are not in a position
(after March 31) to carry on with the service they provide to
Northern Ireland consumers," he told parliament.

Prime Minister Boris Johnson said there were "teething
problems" in trade between Britain and Northern Ireland but that
goods were flowing effectively and in normal volumes.

"But I can confirm ... that if there are problems that we
believe are disproportionate, then we will have no hesitation in
invoking Article 16," he told parliament.

Article 16 of the Northern Irish protocol details so-called
safeguard measures that allow either party to take unilateral
action if there is an unexpected negative effect arising from
the agreement.
(Reporting by James Davey
Additional reporting by Elizabeth Piper and William James
Editing by Nick Macfie, Jane Merriman and David Goodman)