Since the Brexit Referendum, my predecessor, Minister Mary Mitchell O'Connor, attended three meetings of the Competitiveness Council on 29th September 2016, 28th November 2016 and 20th February 2017. State Aid rules did not feature on the agenda. However, in our engagements with both EU Commissioners and Ministers from other Member States since the UK decision, Brexit has been a central part of the discussions at these meetings. Last autumn, officials of my Department initiated discussions with DG Competition to sensitise the Commission to potential difficulties likely to be encountered by Irish firms from the Brexit referendum result. I also informed Michael Barnier, the EU's chief Brexit negotiator, of these discussions when I met him in Brussels on 10th July 2017. These discussions continue at the highest levels to address all relevant issues relating to any proposals emerging from our work with industry.
The Government is conscious of the need to consider the types of supports that Irish businesses may require to address challenges arising as a result of the Brexit Referendum, which is likely to represent a structural shift in the UK trading relations. Short, medium and long term responses from market diversification through to price repositioning will be needed.
On foot of extensive engagement with industry, my Department is working with the Department of Finance, the Department of Agriculture, Food and the Marine, Enterprise Ireland and the SBCI to develop appropriate, tailored and targeted responses. This work, along with market developments as a result of Brexit, and ongoing engagement with the business community, will inform further discussions with the Commission and the development of any further initiatives to business.
A lot can be done within the existing EU State Aid Framework. We are confident that the measures currently in development will be State Aid compliant, and we are taking steps to ensure that we can use all options available under the State aid framework to provide support to companies impacted by Brexit.
Should issues arise that require an approach that does not fit within the existing rules, we will move quickly to advance this with the EU Commission.
