Dáil Éireann Debate, Tuesday - 4 December 2018
53. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation to outline the contingency plans she has put in place for businesses and hauliers in the event of a hard Brexit; and if she will make a statement on the matter. [50531/18]
View answerAs the Minister is well aware, the Brexit deal negotiated between the European Union and the United Kingdom is set to be voted on this day next week in the House of Commons, but it seems crystal clear already that it will be voted down by a large margin. There will be more chaotic scenes in British politics, thereby increasing the chances of a no-deal Brexit. What arrangements have been and are being made by the Department to ensure North-South trade will continue uninterrupted? Are contingency plans in place for exporters and hauliers who use the landbridge through Britain? What has been the level of contact and co-operation between the Minister and her counterpart in London on the matter?
I thank the Deputy for raising this issue. My Department and its agencies are working as part of a coherent cross-government approach to help businesses and the country to prepare for a worst case Brexit scenario, while continuing to work with our EU partners to secure the best possible Brexit outcome. As the Deputy is aware, the Government has placed preparing for Brexit at the top of its budget 2019 priorities. I have also prioritised Brexit preparedness as one of my three main priorities, alongside regional growth and innovation. I am confident that the business community will be best placed to meet the challenges ahead.
Budget 2019 provided over €110 million for additional Brexit preparedness resources and initiatives across Departments and agencies. My Department and its agencies are participating in the new cross-government awareness campaign, Getting Ireland Brexit Ready, with events in Cork, Galway, Monaghan and Dublin in October, as well as in Limerick and Donegal last month.
Over 3,000 businesses have used Enterprise Ireland's Brexit scorecard to date and 85% of its client firms are taking Brexit-related actions such as diversifying their export markets, improving operational competitiveness and investing in research and development.
I have provided funding for 98 additional staff for the agencies and regulatory bodies within the remit of my Department to date to prepare Irish businesses for Brexit. In addition, I am providing an additional €8 million in 2019 for my Department, as well as its agencies and regulatory bodies, to continue the work on our Brexit response and in increasing our global footprint.
The additional work of my Department's agencies such as the Health and Safety Authority and the National Standards Authority of Ireland is particularly important in helping businesses to prepare for a worst case scenario. I am providing an additional €1 million for InterTradeIreland in 2019 to expand its essential work in providing support and advice for businesses to sustain cross-Border trade and on the specific issues related to potential tariffs under a reversion to a World Trade Organization regime.
Additional information not given on the floor of the House
Enterprise Ireland and Revenue are working closely in the design and development of an online platform on future customs requirements for when the United Kingdom leaves the European Union and becomes a third country. It will be rolled-out from early 2019 to all importers and exporters through the local enterprise offices.
I am acutely aware that in the event of a worst case scenario access to finance and liquidity may become issues of concern for exporting businesses, in particular. I am working with my colleague, the Minister for Agriculture, Food and the Marine, in the roll-out of a new €300 million Brexit long-term loan scheme, to come into effect from early 2019, to provide loans of up to ten years.
The Brexit working capital loan scheme which I launched earlier this year provides affordable working capital for eligible businesses with up to 499 employees that are, or will be, impacted on by Brexit and meet the scheme criteria. As of 23 November 2018, there had been 307 applications for eligibility, of which 270 were approved, ranging from the agrifood to the retail and distribution, manufacturing, hospitality and transport sectors. A total of 54 loans have progressed to sanction at the finance provider level, corresponding to a total value of €12.51 million.
I recognise the importance of the haulage, transport and logistics sectors to the functioning of the economy and success in international markets. As the Deputy is aware, transport issues are within the remit of my colleague, the Minister for Transport, Tourism and Sport. I assure the Deputy that the Minister and his Department are engaging actively with stakeholders in the sector on Brexit preparedness.
I thank the Minister for her reply.
I was happy to attend the very well-organised conference in Thomond Park in Limerick, which was quite successful and at which there was a good turnout. With the increased threat of a hard Brexit, I am very concerned about businesses that depend on using the land bridge through Britain for goods going to and from the Continent. According to the data from the Copenhagen economic report, two thirds of Irish exporters make use of the British land bridge to access continental markets. This is particularly true of our food exporters and importers, and they are vulnerable on this specific route as travelling to the Continent by sea is two to three times longer and consequently is not viable.
There is now a real risk that Britain will crash out of the EU with no deal. Are there any specific plans to deal with the land bridge issue? Has the Department looked at solutions such as bonded warehouses in Britain or additional freight ships that could cater for some of the non-perishable goods?
All Departments and agencies are continuing their contingency planning for Brexit, anticipating both orderly and disorderly scenarios. The Department of Transport, Tourism and Sport, and indeed all Departments, have continually stressed the importance of stakeholders taking all necessary steps within their control to prepare for Brexit, including the importance of undertaking contingency planning to minimise the impact of Brexit on their operations. I assure the Deputy that I and other Ministers will continue to work with our EU counterparts, both in EU capitals and within the EU institutions, to protect the interests of our businesses and our haulage sector.
It is vital to minimise the impact of Brexit by avoiding any new regulatory burden for our hauliers. I am pleased that transport and logistics providers have been participating in many of the advisory sessions being held around the country. Many of them have also applied for the Brexit loan scheme. The recent developments on the withdrawal agreement have been welcome. Pending the final outcome of the EU-UK negotiations, however, it is not possible to outline the regulatory regime that will be in place for Irish licensed road transport operators in the various post-Brexit scenarios. While the Government remains focused on the finalisation of the withdrawal agreement to ensure an orderly UK exit, preparations are continuing for all contingencies.
Will the Minister update us on the memo that leaked from Cabinet last week? I understand that it was a memo from the Tánaiste which stated that Ireland will not be ready for a hard Brexit and referenced things such as site acquisitions, planning permission and procurement and construction issues that exist at our ports and airports. This was very concerning to hear and will add to the business worries around a hard Brexit and how businesses will get their products to and from Ireland. What plans are the Government putting in place to ensure we have a smooth continuation of imports and exports should a hard Brexit materialise?
The Minister for Transport, Tourism and Sport, Deputy Ross, hosted an all-island sectoral meeting on Brexit in Dundalk last year. A number of other stakeholder events were held this year and last year. The Department continues to work with the road haulage, tourism, aviation and maritime sectors and stakeholders to identify and plan further for the implications of Brexit. A study was carried out by the Department of Transport, Tourism and Sport to assess the reasons for the use of the land bridge. There is a lot of information in that report, but, to cut to the chase, the study recommended that Ireland's continued access to the UK land bridge is protected in the ongoing EU-UK negotiations. There is ongoing liaison with the European Commission on this matter and on other implications for the international road haulage sector.
We are continuing with contingency planning for all scenarios, both for the central case of a withdrawal agreement being fully agreed and a no-deal outcome, which I feel remains unlikely. It is not helpful to discuss the no-deal scenario at this time. The focus must be on ratifying the agreement, which is the only possible deal that can deliver an orderly UK withdrawal and which has been endorsed by the European Council and the British Government.
