John Curran
Question:16. Deputy John Curran asked the Minister for Business, Enterprise and Innovation the expenditure spent to date on Brexit supports in tabular form; and if she will make a statement on the matter. [10954/19]
View answerThursday, 7 March 2019
Questions (16)
Written answers
Brexit represents a significant challenge for businesses in Ireland, which cannot be underestimated. That’s why my Department started developing supports for businesses from the time when Brexit first became a possibility. Government’s priority is to ensure that businesses around the country can manage risks and avail of any opportunities. This has informed the range of advisory and financial supports that are in place.
My Department’s total exchequer allocation increased by 9.1% year on year, up from €871m to €950.2m. This is made up of a record €620m in capital and €330.2m in current funding, which includes an increase of €65m in capital – up 11.7% on last year’s allocation of €555m; and, an increase of €14.2m in current – almost 4.5% more than our 2018 allocation of €316m.
I allocated an extra €5m to the 31 LEOs, up 22% on 2018, which have a presence in every county, to support start-ups and growth and, in particular, to support businesses to prepare for Brexit. The LEOs will work with the broad range of small and micro indigenous enterprises across sectors to ensure that they are informed and have plans in place to manage the new trading relationships on the island and with the UK more generally. This includes a new customs training programme for all businesses, exporters and importers, rolled out in conjunction with Enterprise Ireland.
I was also pleased to announce an additional capital allocation €2.75m to Enterprise Ireland to start developing regional innovation and technology clusters with Institutes of Technology right across the country, positioning them as drivers of world-class start-ups and growth enterprises and helping businesses adjust to market changes, including Brexit.
Through Enterprise Ireland, I also doubled funding for the Online Retail Pilot Scheme to €1.25m in 2019, which will support SMEs in the retail sector to have a stronger online presence and find new markets. This new Scheme follows through on my commitment to increase the scale and internationalisation of indigenous enterprise; increase productivity in high-employment sectors; and encourage Brexit readiness. I announced the first 11 successful applicants on Friday 1st March last and there will be a further call for proposals this year. In addition, Enterprise Ireland invested €74 million in Brexit impacted businesses in 2018.
Funding to InterTradeIreland has been increased by 18% and they, along with the Local Enterprise Offices, are offering a range of Brexit-focused supports to companies, including those engaged in cross-border trade with Northern Ireland.
The Brexit Loan Scheme, using a combination of Irish Exchequer and EU guarantees, leveraged up to €300 million of lending at a maximum interest rate 4% at a cost to the Exchequer of €23 million - €14 million provided by my Department and €9 million provided by Department of Agriculture, Food and the Marine.
The Future Growth Loan Scheme was announced in Budget 2019. The scheme will be available in early 2019 and it will provide a longer-term facility, 8 to 10 years, of up to €300m to support strategic capital investment for a post-Brexit environment by business at competitive rates. This Scheme is jointly funded by the Department of Business, Enterprise and Innovation (€37.2 million) and the Department of Agriculture, Food and the Marine (€24.8 million) at a total cost to the Exchequer of €62 million.
The table attached sets out the respective exchequer increases in allocations to ITI, EI, IDA and the LEOs between 2018 and 2019 and the cost/expenditure of the supports available. Whilst these increases are not all due to Brexit, their mainly provided to assist the enterprise agencies in their responses to the challenges posed by Brexit.