I propose to take Questions Nos. 265 to 270, inclusive, together.
The Deputy will be aware that the UK decision will not take effect for some time and that the precise implications of the referendum result will now depend on the period of negotiation ahead, involving the UK and our EU partners.
As indicated by the Taoiseach in his statement last Friday, the Government has adopted an initial Contingency Framework to map out the key issues that will be most important to Ireland in the coming weeks and months. My own Department has been, and will continue to be, fully engaged in the risk analysis and contingency planning work that is being undertaken at cross-Government level, led by the Department of the Taoiseach.
Following the announcement of the referendum result on Friday June 24th, as part of my contingency plans, I instituted a Coordination Group consisting of the Chief Executive Officers of both IDA Ireland and Enterprise Ireland and relevant enterprise, single market, and trade officials, to oversee the management of our immediate response and the messaging to businesses both overseas and domestically. I will continue to chair this Group as part my Department’s ongoing response as developments unfold.
I have asked the agencies to communicate directly with their clients, and, I am aware that in addition to writing to them, there have been multiple contacts since then, between IDA Ireland and Enterprise Ireland and their respective senior business clients.
I will continue to meet with the enterprise agencies to lead the co-ordination of our response to challenges as they emerge.
The UK remains a market opportunity for Irish business, and I am conscious that a decrease in the value and/or the volume of exports to the UK will affect industry, including SMEs and agrifood sector enterprises.
Enterprise Ireland has already set up a helpline and email address to provide assistance to its clients, and will implement a range of plans to assist Irish exporters. Key measures in this regard include:
- Provision of information and guidance on the practical implications of a UK exit;
- Market diversification support; expansion of EI ‘International Sector Clustering Strategy’;
- Intensification of UK market support to include advice on improving competitiveness, reducing supply chain costs, accessing funding, finance, foreign exchange as well as identification of key business opportunities;
- Management and financial supports including market access grants to client companies to evaluate new market opportunities.
In addition, Enterprise Ireland will fine-tune existing support tools (Lean Programmes, Market Diversification, Innovation and Management Development) to address new UK market conditions.
It is worth noting however, that as a result of determined efforts to assist companies to diversify into new markets, Enterprise Ireland clients have moved in recent years from some 45% of goods & services exports going to the UK, to some 37% in 2015.
The impact on enterprise and trade in Border counties will also be monitored closely. In this context, the North East/North West Action Plan aims to deliver 28,000 extra jobs in the counties of Cavan, Monaghan, Sligo, Leitrim, Donegal and Louth by 2020.
The Regional Action Plans for Jobs initiative is a concrete example of the targeted approach we are undertaking to boost regional employment. I intend to visit the regions and meet stakeholders to ensure that plans are being implemented in every region, including the Border region.
IDA Ireland will continue to market Ireland across the globe as the number one location for direct investment, confirming that we are open for business.
IDA Ireland has a strategic scenario planning team, which in the months leading up to the UK referendum on European membership, engaged with clients and prospective clients in relation to the potential impact of a decision by Britain to leave the European Union. This team continues to work on ensuring that the Agency’s strategy is fit for purpose in light of the recent referendum results in the UK.
Following the announcement of the results on 24th June, the Chief Executive of IDA Ireland, Martin Shanahan, wrote to the Agency’s 1,200 clients and reassured them that “Ireland is and will remain a member of the European Union (and Eurozone), and retains full access to the European Union market”. Mr. Shanahan re-affirmed IDA Ireland’s strong commitment to working with the existing client base to assist and support them in their growth and expansion in Ireland. His letter also highlighted Ireland’s continued strong offering in relation to talent, ease of doing business, a competitive and transparent taxation regime, English-speaking and, critically, Ireland’s continued access to the EU market.
Mr. Shanahan has also engaged with international media to highlight that Ireland is very much open for business with full European Union market access.
Ireland will be working closely with the UK and other EU member States to ensure that any potential disruption to trade and investment is minimised.
We will continue to support the EU in creating open markets and will endeavour to ensure that our interests are to the fore in future negotiations with the UK. Ireland will continue to make the most effective use of the framework of bilateral trade agreements and multi-sectoral trade agreements that the EU already has in place under the World Trade Organisation, and to support the opening of new markets through the EU. Regarding the Transatlantic Trade and Investment Partnership Agreement the EU Council of Trade Ministers at their meeting in May urged the Commission to advance the negotiations, whilst fully respecting its negotiating mandate and the EU interests. While many complex and difficult issues remain to be resolved, both the EU and the US negotiators remain optimistic that a comprehensive and ambitious agreement can be concluded. Ireland’s enterprises are particularly well placed to take up opportunities to trade more easily with the US. This will build on our already rewarding economic relationship.
I have asked Enterprise Ireland to accelerate the finalisation of their plans for increasing the number of trade missions both within the EU, to include France, Germany and Scandinavia, and to intensify our programme of missions in non-EU markets.
I am also initiating a review of the overseas footprint of Enterprise Ireland and IDA Ireland, to ensure we are fully prepared to support business in finding new markets and investment.
In tandem, I will be leading a trade mission to the UK in early July, as the UK will remain a key market for Ireland and we need to retain our focus on its potential, even as we seek to diversify to other markets.
Since taking up my appointment as Minister for Jobs, Enterprise and Innovation, I have already met with my UK ministerial counterparts on trade and on the Single Market (Competitiveness) – Lord Price and Baroness Neville-Rolfe, respectively; and a senior delegation of Trade and Single Market officials from my Department will meet on Friday 1st July, in London with their UK counterparts to review developments.
I would assure the Deputy that the Government, my Department and the enterprise agencies are fully committed to supporting business in this period of heightened uncertainty; however, we do so against the background of a strong economy and a highly competitive enterprise sector.
