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Brexit Issues

Dáil Éireann Debate, Wednesday - 19 December 2018

Wednesday, 19 December 2018

Questions (287)

Billy Kelleher

Question:

287. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the preparations under way for a hard no-deal Brexit; the schemes being operationalised with other Departments; when these will be ready to be deployed; when she will publish such plans; and if she will make a statement on the matter. [53663/18]

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Written answers

As the Deputy will be aware, extensive and detailed Brexit preparedness and contingency work is underway across all Government Departments and State agencies.

In a number of key areas for Ireland, the appropriate response and mitigation will be at the EU level. The EU Commission acknowledged the particular impact of Brexit on Ireland and Irish business in its contingency planning communication of 13 November. In tandem with this, many of the potential consequences of a “no deal” Brexit have already been set out in a series of European Commission notices dealing with key sectors. Firms should look at these notices with their representative bodies to better understand the possible impacts.

My Department has also participated in relevant expert level meetings organised by the European Commission with participation by the EU27 Member States in November/December 2018 on key issues.

Government's focus is to plan for an orderly Brexit based on the Withdrawal Agreement which provides for the backstop and a future partnership which is ambitious and wide ranging. Given the current uncertainty, Government will continue to work on Brexit preparedness for the central case scenario but is now giving immediate priority to preparations for a disorderly Brexit. My Department and its agencies, are working on a cross-government basis to help prepare for all Brexit scenarios

The Government has already taken actions to get Ireland Brexit ready, with dedicated measures announced in Budgets 2017, 2018 and 2019.

My Department, in particular, has developed a package of measures that allow us to respond to the needs of businesses affected by Brexit-related uncertainty, including in a worst-case scenario. Over the past two years, we have substantially increased the resources available to the Enterprise Agencies within my Department's remit and we have put in place a number of schemes to assist firms address the challenges posed by Brexit. Some of the main supports I have put in place include:

- Enterprise Ireland’s ‘Be Prepared Grant’ which offers up to €5,000 in funding to support exporting client companies to prepare a Brexit Action Plan.

- Enterprise Ireland’s ‘Act On’ Initiative to help Brexit-exposed client companies to strengthen their capabilities in key areas of Financial and Currency Management, Strategic Sourcing, Customs and Logistics. This is delivered at no cost to the company.

- The Local Enterprise Office’s (LEOs) ‘Lean for Micro Programme’ which offers clients the opportunity to incorporate Lean business principles to improve performance and effectiveness.

- The LEO’s ‘Technical Assistance for Micro Enterprises’, to support businesses to diversify into new markets, enabling them to develop new market opportunities outside of the EU.

- InterTrade Ireland’s ‘Start to Plan’ vouchers – worth €2,250 - to enable SMEs to purchase specialist advice on customs, tax, tariff and non-tariff barriers, legal and labour mobility issues, specifically in relation to Brexit.

- On 28 March this year, I, along with Minister Donohoe and Minister Creed, launched the €300 million Brexit Loan Scheme with the European Investment Bank Group and the SBCI. This scheme provides affordable working capital to eligible businesses.

In allocating my Department’s budget for 2019, I stepped up our response to Brexit, basing my decisions on both an extensive body of research and direct feedback from the sector.

In addition to the above measures, the longer-term Future Growth Loan Scheme will help businesses invest strategically in a post-Brexit environment and will be available early in 2019. The scheme, which is jointly funded by my Department and the Department of Agriculture, Food and the Marine provides up to €300m to support capital investment by business and offers loan terms of 8 to 10 years.

In the 2019 budget I have allocated €8m extra for Brexit staffing & supports across enterprise and regulatory agencies in order to prepare Irish businesses for Brexit; the roll-out of customs training through Local Enterprise Offices and Enterprise Ireland; and, €1m additional funding for InterTrade Ireland.

At the beginning of this month, Enterprise Ireland, working with the Revenue Commissioners, launched an online “Customs Insights” course designed for Irish businesses dealing with customs for the first time. The course will give learners a firm understanding of customs, the implications for their business and the options from Revenue that are available to make the customs process more efficient.

Notwithstanding the uncertainty of Brexit, there are several areas where firms can take immediate action to prepare. I would ask firms now to take heed and to take action. My advice to businesses is to:

- Be alert to your supply chains and any possible disruption that might arise.

- Be alert to the potential for new customs procedures that might be required and the possible application of new tariffs and quotas in certain areas

- Be alert to certification, standards and licensing issues.

- Be alert to currency fluctuations.

- Be alert to the State supports and loans schemes available from Government, including through Enterprise Ireland, the LEOs and InterTrade Ireland.

The European Commission and Government have also made known their intention imminently to set out additional information relating to Brexit contingency planning for a no-deal scenario, including as regards necessary legislation that will be required.

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