Dáil Éireann Debate, Monday - 11 September 2017
67. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the status of the development of sectoral response plans to Brexit; the publication date of these plans; and if she will make a statement on the matter. [38687/17]
View answer68. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the issues identified for consideration in the context of Brexit, including opportunities and their prioritisation; and if she will make a statement on the matter. [38703/17]
View answer69. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the details of issues identified for consideration in the context of Brexit, including threats and their prioritisation; and if she will make a statement on the matter. [38719/17]
View answer70. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the scenario planning that has been conducted by her Department for Brexit; and if she will make a statement on the matter. [38735/17]
View answer71. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the methodology employed in the prioritisation of responses to Brexit; and if she will make a statement on the matter. [38751/17]
View answer72. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the funds that have been requested in response to threats resulting from Brexit; and if she will make a statement on the matter. [38767/17]
View answer73. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the funds have been allocated in response to threats resulting from Brexit; and if she will make a statement on the matter. [38799/17]
View answer75. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation her Department’s priorities for risk mitigation in response to Brexit; and if she will make a statement on the matter. [38831/17]
View answerI propose to take Questions Nos. 67 to 73, inclusive, and 75 together.
The comprehensive document “Ireland and the negotiations on the UK’s withdrawal from the European Union: The Government’ Approach” published on 2 May outlined in detail the structures put in place by the Government to ensure a strategic and whole-of Government response to Brexit that ensures a co-ordinated approach to the identification of key priority issues for the EU-UK negotiations and the wider domestic response.
Since the publication of the comprehensive document, the Government has sought to further increase its strategic oversight of Brexit through the addition of a dedicated responsibility for Brexit matters to the role of the Minister for Foreign Affairs & Trade. The Cabinet Committee structures have also been reformed and a new Cabinet Committee has been established to deal with EU Affairs including Brexit.
The Government’s National Risk Assessment 2017, which provides a systematic overview of strategic risks facing the country, was published on 29 August following a public consultation process. The National Risk Assessment acknowledges the significance of risk arising from Brexit, and that Brexit represents an overarching theme that could have far-reaching impacts on nearly all aspects of national life. It identifies areas where Brexit poses a specific risk, particularly in relation to the economy.
As set out in comprehensive document of 2 May, the Government’s continuing work to ensure that Ireland’s interests are reflected in the EU’s approach to the ongoing EU-UK negotiations is a central dimension of Ireland’s strategic response to Brexit.
Work is also continuing across Government on Ireland’s wider response to the challenges and opportunities posed by Brexit, building on ongoing cross-Government research, analysis and consultations with stakeholders and encompassing the following themes:
- sustainable fiscal policies to ensure capacity to absorb and respond to economic shocks, not least from Brexit;
- policies to make Irish enterprise more diverse and resilient, to diversify trade and investment patterns, and to strengthen competitiveness;
- prioritising policy measures and dedicating resources to protect jobs and businesses in the sectors and regions most affected by Brexit;
- realising economic opportunities arising from Brexit, and helping businesses adjust to any new logistical or trade barriers arising;
- making a strong case at EU level that Ireland will require support that recognises where Brexit represents a serious disturbance to the Irish economy.
Policy decisions in support of these objectives also arise across a wide range of areas, including the annual budgetary process; the forthcoming National Planning Framework 2040; the new 10-year National Capital Plan; the Review of Enterprise 2025 Policy, and sectoral policies and investment decisions in areas such as agriculture, enterprise, transport, communications and energy.
Given the wide mission of the Department of Jobs, Enterprise and Innovation, the UK’s decision to leave the European Union will impact significantly on all policy fields across my Department as well as our family of Agencies. My Department and the enterprise agencies are fully committed to supporting business and all of our stakeholders in this period of heightened uncertainty.
My Department has been building an understanding of companies’ needs in adapting to the challenges posed by Brexit and to develop appropriate and targeted responses to support them. In May my Department published the results of a survey of over 1,000 enterprises.
In response to the results of the survey we are developing a Brexit Working Capital Guarantee Scheme and scoping out the need for a longer term Business Development Loan Scheme to assist firms in investing for a post-Brexit environment.
My Department has funded a research project commissioned by InterTrade Ireland to improve our understanding of the impact on cross border trade of different trade and tariff regimes which might be imposed following Brexit. The research, conducted by ESRI, which was published in June, provides useful data on the extent and concentration of cross border trade, including information on this trade by product and firm types and barriers to trade.
My Department is currently undertaking research to examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy.
The Competition and Consumer Protection Commission is also undertaking a research project to identify the potential financial impacts of Brexit on Irish consumers due to price increases on goods imported from the UK, under a number of potential post Brexit trade scenarios.
In addition we are profiling the composition of trade and investment for Ireland and a range of EU Member States with the UK – these studies will provide an evidence base to inform Ireland’s policy positions as part of the wider negotiation on the UK’s future relationship with the EU.
Brexit and the changing global trading environment were significant considerations in drawing up the 2017 Action Plan for Jobs. This year’s plan is at the core of the government’s response to the huge challenge these pose for businesses - to make sure our enterprise base is resilient in the face of changes to come. This was reflected in the 10 percent increase secured by my Department in this year's capital allocation. Finally, we will also, in the context of Budget 2018, seek to secure the necessary additional resources required to put in place more supports for companies most impacted by Brexit.
In recognition of the challenges facing the Department, not least those posed by Brexit, the Department’s exchequer gross allocation in 2017 was increased to €858.5m. This increase, which represented an overall increase of 7% on the Department’s 2016 allocation of €800.4m, included an additional €52m in capital funding and an additional €6m in current funding.
In terms of current funding, the increased allocation provided to my Department in 2017 included an additional €3million in respect of Pay and is being targeted specifically to assist in our response to the evolving Brexit scenario. It is enabling the Department and, primarily, our Agencies to recruit some 40 to 50 additional staff to supplement existing staffing numbers. These numbers may grow as Agencies allocate additional Own Resource Income, by agreement with the Department, to recruit further staff to work on "Brexit-related" activity.
As regards capital funding, the 2017 allocation of €555m is a 10% increase on the Department’s 2016 capital base of €503m and represents the highest ever capital allocation secured by my Department. This increased capital provision is intended to ensure that the Department’s Enterprise Agencies can continue to meet the ongoing challenges of enterprise development but also the specific threats and opportunities posed by Brexit.
As advised Brexit continues to be the primary focus and priority for my Department. The Deputy will be aware that preparations in relation to the formulation of Budget 2018 are well underway. It is my intention that the Brexit challenge is to the forefront of the Budget 2018 discussions. Given the available fiscal parameters, I am determined to secure the optimal level of funding for my Department’s Enterprise Agencies in Budget 2018 and beyond given their central role in responding to the threats posed by Brexit.
Enterprise Ireland and the LEOs are steadily working with companies to make sure that they are better prepared to respond to the challenges that Brexit will bring. These are the medium term, strategic actions that I know that companies are calling for – things like helping them to drive down costs, diversify into new markets and innovate in the way they do business.
Enterprise Ireland is guiding its clients on issues including: the implications of trading with the UK, improving competitiveness, reducing supply chain costs, accessing funding, finance, foreign exchange, employment regulations and legal issues; investing in programmes to ensure that clients have the finances, the innovation, the leadership and the scale so as to grow in international markets; intensifying its strategy of supporting clients to diversify into new markets and is hosting an International Markets week in the first week of October in Ireland, to provide Irish exporters with access to its overseas market advisors; Enterprise Ireland’s UK team, based in London, is providing support to clients to help identify key business opportunities in the short and medium terms. They also provide advice and support on responding to the implications such as improving competitiveness and reducing supply chain costs.
Enterprise Ireland has also extended its schedule of Minister-led Trade missions. In 2017, there are 46 international ministerial led trade events planned with focus on market diversification into Eurozone and North America. The 2017 trade mission schedule targets key sectors in high potential growth markets and aims to open doors for Irish companies to create opportunities to start negotiations and win significant business contracts in overseas markets. IDA Ireland is constantly engaged with clients across its entire portfolio and in the months leading up to the UK referendum it engaged with clients and prospective clients in relation to the potential impact of BREXIT. The IDA has a Team involved in strategic scenario planning, which continues to work on ensuring that the Agency’s strategy is fit for purpose in light of the referendum results in the UK.
IDA client companies now directly support over 199,000 jobs in Ireland – the highest level ever.
IDA Ireland will continue to work with its existing client base to assist and support them in their growth and expansion in Ireland; to highlight Ireland’s continued strong offering based on talent, ease of doing business, its competitive and transparent taxation regime, English as the spoken language and critically Ireland’s continued access to the EU market; and to be in contact with clients, and prospective clients across the globe and continue to market a competitive value proposition to attract mobile foreign investment from global locations including the UK.
InterTrade Ireland provides a targeted portfolio of programmes to help businesses, especially SMEs, develop capacity in the areas of science, technology & innovation and sales & marketing.
In May InterTrade Ireland established a Brexit Advisory Service for SMEs in the Republic of Ireland who are trading with Northern Ireland, to help them adapt to the changed circumstances following the UK’s withdrawal from the EU. This initiative offers businesses a number of supports, including vouchers valued at €1,000 allowing them to fund specialist advice, free briefing events, information on currency hedging and an interactive information tool explaining the technical language related to Brexit.
The body is also monitoring business needs and challenges through its Business Monitor survey process (a quarterly survey of SME opinion and plans), so that it is in a position to respond quickly to business concerns as the Brexit process evolves.
In addition, Science Foundation Ireland is undertaking a range of measures, both immediate and over the longer term. A key objective for SFI is to strengthen the research funding collaborations with the UK and Northern Ireland with the aim of supporting current collaborations and ensuring that the Irish research community are well-positioned for the post Brexit scenario, where Britain will continue to be a world-leader for innovation and R&D. Given this platform of strong collaboration, or geographical proximity, common language and numerous shared values, SFI believes that it is strategically important now to consolidate and build more Ireland-UK research partnerships and in so doing harness our mutually beneficial strengths.
SFI is targeting globally-renowned researchers to relocate their research operations to Irish universities, thereby benefiting Ireland but also offering these researchers certain access to EU funding. This can take the form of either internationally-based researchers co-locating to Ireland and the UK and holding a joint-professorship appointment with an Irish university and a top-4 UK university, or can involve a UK-based researcher re-locating all or part of their research operation to Ireland.
SFI continues to work to maximise the opportunities arising from Brexit and to moderate any possible negative consequences of Brexit on the Irish research community.
