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Brexit Supports

Dáil Éireann Debate, Tuesday - 14 May 2019

Tuesday, 14 May 2019

Questions (79)

Jan O'Sullivan

Question:

79. Deputy Jan O'Sullivan asked the Minister for Business, Enterprise and Innovation if further supports are available to businesses that are affected by the uncertainty surrounding the decision of the United Kingdom to exit the European Union; if and when this will take place; and if she will make a statement on the matter. [20508/19]

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Written answers

My Department and its agencies have put in place a full range of supports, schemes and advice to ensure that businesses across the country are prepared for the UK’s exit from the EU. These measures aim to assist businesses in identifying the key risk areas and practical preparatory actions to be taken over the coming weeks and months.

An additional €5 million capital funding has been allocated to the Local Enterprise Offices, which represents an increase of 22%, and a further €1 million allocated to InterTradeIreland to help SMEs prepare for the challenges associated with Brexit.

The Local Enterprise Offices [LEOs] are the first-stop-shop for anyone seeking guidance and support on starting or growing their business. The LEOs have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit. In addition, 593 LEO clients have received one-to-one mentoring solely focused on Brexit. As of February 2019, the LEOs are also offering customs training workshops to support in businesses trading with third countries in advance of the UK’s withdrawal from the EU.

The LEOs engage in a number of other schemes to help businesses prepare for Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities, as of April 2019, 651 LEO clients were approved assistance under the grant.

InterTradeIreland [ITI] works with SMEs on an all-island basis and is particularly well-placed, given its remit to develop cross-border trade, to help SMEs prepare for the challenges associated with Brexit. The ITI Brexit Advisory Service provides a focal point for SMEs working to navigate any changes in cross-border trading relationships arising as a result of Brexit. As part of this service, ITI has organised a series of awareness-raising events focused on improving knowledge of customs processes and procedures and identifying actions that can be taken in areas such as logistics and supply chain management. To date, more than 7,000 SMEs have directly engaged with the Brexit Advisory Service.

ITI also offers a Brexit Planning Voucher scheme, which enables businesses to seek professional advice on how best to plan and prepare for the UK's withdrawal from the European Union. This support helps businesses obtain advice on specific areas such as tariffs, currency management, regulatory and customs issues and movement of labour, goods and services. Brexit Planning Vouchers are worth up to €2,250 (inclusive of VAT) each. Businesses are finding the vouchers very useful and there has been strong demand which can be attributed to the media campaign conducted by ITI across a range of platforms. As of its most recent report, 1,476 businesses have applied for a Brexit Start to Plan voucher, of which 1,310 have been approved.

In March, ITI launched a further financial support in the form of the Brexit Implementation Voucher, which offers 50% financial support up to £5,000 towards implementing critical changes in relation to Brexit matters.

The Brexit Loan Scheme provides relatively short term working capital, 1-3 years, to eligible businesses with up to 499 employees to help them innovate, change or adapt to mitigate their Brexit challenges. The scheme was launched in March 2018 and, as at close of business on 10th May, there have been 614 eligibility applications received, of which 557 have been approved and 124 loans progressed to sanction at bank level to a value of €27.77m.

The Future Growth Loan Scheme was launched in April 2019. The scheme provides 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 has been jointly funded by the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine to make available loans of €50,000 to €3m, with loans of under €500,000 being provided on an unsecured basis. The scheme is open to eligible Irish businesses, including those in the primary agriculture and seafood sectors, to support strategic, long-term investment in a post-Brexit environment.

Enterprise Ireland has established a Prepare for Brexit online portal and communications campaign, as well as an online “Brexit SME Scorecard” to help Irish businesses self-assess their exposure to Brexit and a “Be Prepared Grant” to support SME clients in planning to mitigate risks arising from Brexit. It has also launched a new Eurozone Strategy to help SMEs broaden their export footprint beyond the UK.

Over 5,000 businesses have used Enterprise Ireland’s Brexit Scorecard to date and 85% of EI client firms are now taking actions, while 194 applications for the Be Prepared grant have been approved. 233 EI clients have received funding under its “Act On” programme, which supports the engagement of a consultant to help clients identify weaknesses and improve resilience.

Enterprise Ireland’s Customs Insights course helps businesses looking at customs for the first time to understand the key customs concepts, documentation and processes. The course advises on the key actions companies can take to prepare for Brexit and highlights the various supports available. This is available for any company to use whether they are importers or exporters and also whether they are agency clients or not.

My Department has also been working closely with the EU Commission and DG Competition since November 2017 through the Irish/EU Technical Working Group on State Aid. The Group comprises representatives from DG Comp, my Department, the Department of Agriculture, Food and the Marine and Enterprise Ireland. Its objective has been to scope and design schemes to support enterprises impacted by Brexit in line with State Aid rules. Much has been achieved by this Working Group. It has examined and explored a range of opportunities within State Aid rules including the development of the Future Growth Loan Scheme under GBER rules, the expansion of Ireland’s Rescue and Restructuring Scheme to include Temporary liquidity aid and the Group is currently working closely with DG Agri to explore the range of opportunities under the Agriculture and Forestry State aid guidelines. It has looked at regionally important, exposed clients and their building resilience in their response to Brexit by using environmental and innovation aid.

Earlier this year I met with the European Commissioner for Competition, Margrethe Vestager. The focus of the meeting centred around the severe challenges that Irish businesses will face when the UK leaves the EU and the need for appropriate and timely State supports. It was agreed that Irish officials will continue to work closely with the Commissioner's team in addressing any State aid issues that may arise to ensure a rapid and appropriate response as the ultimate shape of Brexit and its firm-level implication become known. The Commissioner emphasised that the Commission stands ready to act urgently in mitigation against the impacts of Brexit on Irish firms.

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