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Brexit Supports

Dáil Éireann Debate, Tuesday - 4 December 2018

Tuesday, 4 December 2018

Questions (82)

Aindrias Moynihan

Question:

82. Deputy Aindrias Moynihan asked the Minister for Business, Enterprise and Innovation the contingency measures and supports in place to safeguard County Cork SMEs from a hard Brexit situation; and if she will make a statement on the matter. [50517/18]

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Written answers

My Department and its agencies are working as part of a coherent cross-government approach to helping businesses and the country to prepare for a worst-case Brexit scenario, while continuing to work with our EU partners on securing the best possible Brexit outcome.

As the Deputy is aware, this Government has placed preparing for Brexit at the top of the 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 SMEs in Co. Cork and throughout the country will be best placed to meet the challenges ahead.

Budget 2019 provided over €110 million for additional Brexit preparedness resources and initiatives across government 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 and Limerick and Donegal last month.

Over 3,000 businesses have used Enterprise Ireland’s Brexit Scorecard to date and 85% of Enterprise Ireland's client firms are now 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 under the remit of my Department to date in order to prepare Irish businesses for Brexit. In addition, I am providing an additional €8 million for 2019, for my Department, as well as its agencies and regulatory bodies to continue the work on our Brexit response and 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 prepare for a worst-case scenario. I am providing an additional €1 million to InterTrade Ireland for 2019 to expand their essential work in providing support and advice to businesses to sustain cross-border trade and on the specific issues relating to potential tariffs under a reversion to World Trade Organisation (WTO) regime.

In relation to any new customs arrangements, Enterprise Ireland and Revenue are working closely on the design and development of an on-line platform on future customs requirements for when the UK leaves the EU and becomes a third country. This will be rolled-out from early 2019 to all importers and exporters, including those in Co. Cork, through the Local Enterprise Offices (LEOs).

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, on 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 10 years.

The Brexit Working Capital Loan Scheme which I launched earlier this year provides affordable working capital to eligible businesses with up to 499 employees that are, or will be, impacted by Brexit and meet the scheme criteria. As at 23 November 2018 there had been 307 applications for eligibility, of which 270 were approved ranging from agri-food, retail and distribution, manufacturing, hospitality and transport sectors. 54 loans have progressed to sanction at the finance provider level, to a total value of €12.51 million.

My Department is also continuing to work with the European Commission in relation to State aid flexibilities. Specifically in May this year I agreed a temporary restructuring aid scheme with the Commission, which is in addition to the rescue and restructuring scheme agreed in 2017.

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