Dáil Éireann Debate, Tuesday - 4 December 2018
281. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which the relevant sectors of her Department are on active footing in the run-up to and aftermath of Brexit in order to ensure that each opportunity is utilised to maximise job creation through opportunities arising from Brexit; and if she will make a statement on the matter. [50842/18]
View answerBrexit represents the most significant economic challenge facing businesses in the last 50 years but I am satisfied that my Department, its offices and agencies are fully focused on supporting businesses to withstand the challenges presented. I am confident that the agencies under my remit have the supports available to enable companies to consolidate existing market share and build resilience by broadening their exports to other international markets.
Since the outcome of the 2016 referendum in the UK, my Department has been preparing for Brexit. In 2017 for example, we outlined our approach to Brexit in the Report entitled “Building Stronger Business” which identified the anticipated impacts of Brexit on the enterprise sector. Since then, my Department with its agencies has continued to work on Brexit preparedness and contingency planning, putting in place a range of supports to assist businesses to address the challenges posed by Brexit. Our Enterprise Agencies are at the forefront of these efforts.
IDA Ireland, an agency of my Department, continues to focus on converting interest shown from companies into investing in Ireland in key sectors including financial services, bio-pharma, technology and business services. It is making steady progress winning investments and is confident that we will see more Brexit related investments.
As highlighted in a Copenhagen Economics study commissioned by my Department and published earlier this year, limited opportunities from Brexit may arise, mainly concentrated in the financial services sector and some other business services. Financial Services is a key sector where Ireland has considerable strengths. IDA Ireland is taking a targeted but realistic approach to pursuing these opportunities and this is being done in the context of upholding regulatory standards that apply in Ireland managed by the Central Bank. IDA Ireland estimate that more than 40 companies have decided to either expand their existing operations or establish their first presence in Ireland as a consequence of Brexit.
Enterprise Ireland has an extensive range of supports to encourage clients to become more competitive, innovative and to diversify export markets and have put in place a suite of supports to assist companies. These include initiatives such as the Brexit scorecard to help companies assess their Brexit exposure, a Be Prepared grant of up to €5,000 to prepare a Brexit action plan, dedicated Brexit Advisory clinics organized countrywide and a Short Term loan facility of €300m.
In addition, EI is implementing extensive trade mission and event schedules aimed on further developing in-market expertise and networks, new sectoral opportunities and stimulating demand for Irish products and services through international marketing campaigns. These efforts are underpinned by the Eurozone Strategy launched by EI in 2017 to increase exports to Eurozone countries by 50% by 2020.
Key to my Department's response to Brexit has been extensive consultation with stakeholders across all sectors of the economy. Detailed research has been carried out to help the Government decide how to best respond to the challenges of Brexit. Several important steps have already been taken to prepare our economy, including through a range of measures aimed at building resilience and providing new opportunities to business announced in Budgets 2017, 2018 and 2019.
Most recently, in Budget 2019, we have introduced additional measures to assist businesses, complimenting existing Brexit supports. These include the Future Growth Loan Scheme to provide longer-term lending to support capital investment by businesses; an additional €5 million to the Local Enterprise Offices (LEOs) to enhance the programme of supports which they provided at local level, including training in customs procedures for businesses; an additional €8 million for the enterprise agencies and regulatory bodies in their efforts to support businesses; an extra €1 million in capital funding to InterTradeIreland to assist companies trading on an all Island basis and, a doubling of the Retail Online Pilot Scheme to €1.25 million to assist companies to build an online presence.
This Government is also focused on sustaining and creating new employment opportunities. Building on the success of the Action Plan for Jobs, the recently launched Future Jobs programme represents the next phase of Ireland’s economic development. The Future Jobs strategy sets out longer-term ambitions for the future of the economy, taking account of the challenges facing us, including Brexit. We want the economy to sustainably grow in the years ahead and embrace new technologies. It is designed to secure our enterprise base and secure Ireland’s long-term economic prosperity.
I am satisfied that across a range of supports and initiatives, work of my Department and its agencies is focused on supporting businesses throughout the country to withstand current challenges and succeed into the future.
