Government has a clear plan in place to respond to the referendum outcome and has a Contingency Framework which maps the key issues that will be most important to Ireland in the coming weeks, months and years, including the future changing trading relationship between the UK and Ireland. A summary of the key actions that will be taken to address the contingencies arising from the UK’s decision has been published.
As outlined previously, 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.
Since the announcement of the UK referendum result on 24 June, as part of my contingency plans, I have established a Coordination Group within my Department consisting of relevant enterprise, single market, and trade officials, together with the Chief Executive Officers of IDA and Enterprise Ireland, to oversee the management of our immediate response, including the messaging to businesses both at home and overseas. I chair this Group, and I will continue to do so as part of my Department’s ongoing response as developments unfold at EU level and bilaterally with the UK.
Also on that day, I met with representative business organisations, including IBEC, ISME, the SFA, and the Irish Exporters Association, to provide an update on immediate responses to reassure business in the aftermath of the result.
Since then, I have had meetings with a range of other representative organisations, including American Chamber of Commerce Ireland (AmCham), Dublin Chamber of Commerce, and the Irish Farmers Association.
I have also written to my newly-appointed counterparts in the new UK Government – Liam Fox, the Secretary of State for International Trade, and Greg Clark, the Secretary of State for Business, Energy and Industrial Strategy – to confirm my intention to work together with them as the upcoming negotiations develop, and to request an early opportunity to discuss our priorities.
In addition, the enterprise agencies under my remit will continue to deliver on their commitment to supporting business and jobs in this period of heightened uncertainty.
In this regard, on the day after the referendum result, the CEO of IDA Ireland, wrote to the 1,200 Foreign Direct Investment companies who have operations in this country. That contact was designed to reassure those companies regarding Ireland’s ongoing commitment to the EU and on our commitment to FDI. He reassured those companies that the IDA will work with them to help sustain their existing business in Ireland and to grow additional business opportunities here.
Engagements by the IDA both with their existing client companies and with new prospective investors, on issues arising as a result of the UK Referendum will, of course, continue on an ongoing basis. Ireland’s commitment to our membership of the European Union, which provides for full access to that market for businesses located in this country, and our specific advantages for inward investment, will be highlighted by my Department and by the IDA at every opportunity.
Earlier this month, Enterprise Ireland reported that its client companies saw an increase of 10% in exports in 2015 amounting to an all-time high of €20.6bn. The export figure is now almost double what it was 10 years ago (€10.73bn in 2005).
As regards the UK vote to leave the European Union, and the importance of the UK market, EI client exports to the UK increased by 12% last year to reach €7.5bn. Significantly however, in the context of Brexit, UK exports, as a share of total exports, have reduced from 45% to 37% over the period 2005 to 2015 as EI clients have diversified their export base. High Growth Markets (e.g. China, Brazil, etc.) have continued to increase in importance over the past 10 years and now account for 12% of total exports compared to 7% in 2005.
Despite the continued diversification of the Enterprise Ireland client export base, the UK’s vote to leave the EU will present significant new challenges for Irish companies exporting to the UK. In response, Enterprise Ireland has begun its plans to support clients exporting to the UK, including:
1. Information and Guidance:
Enterprise Ireland will run an information campaign including: practical guides, online information and webinars, an updated UK market access guide and regional seminars in Ireland and the UK. Further details are available at www.enterprise-ireland.com/brexit.
2. UK Market Support:
Enterprise Ireland's UK team will support clients to identify key business opportunities in the short and medium terms. They will also provide advice and support on responding to the implications of Brexit such as improving competitiveness and reducing supply chain costs.
3. Competitiveness and Market Development Supports:
Enterprise Ireland will intensify its work with clients, to improve their competitiveness in the market, through its management capability and development programmes.
4. Market Diversification Support:
Enterprise Ireland will intensify its strategy of supporting clients to diversify into new markets. As part of this strategy, Enterprise Ireland will intensify its International Trade & Investment events schedule for the rest of 2016 to include trade missions and events to Northern Europe, USA, China, India and other high growth markets.
5. International Sector Clustering Strategy:
Enterprise Ireland will expand its focus on promoting Irish sectoral cluster capabilities in key sectors to international buyers in growth markets including Northern Europe, USA and Asia Pacific.
Regarding specific North South Enterprise development issues, my Department co-funds InterTrade Ireland the Cross Border body which operates a range of programmes to develop businesses on a cross border basis. The cross-border market on the island is particularly important for small firms with nearly two thirds of NI small firm exports going South and one sixth of Ireland’s small firm exports going North.
Already the Body has published a factsheet for companies providing helpful information on this issue. In the short term InterTrade Ireland is planning to make information available to SMEs on any changes that could affect cross-border trade. It will also keep abreast of business needs and challenges through its Business Monitor survey process so that it is in a position to respond quickly to business concerns.
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. We will also 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.
