Skip to main content
Normal View

State Aid

Dáil Éireann Debate, Tuesday - 15 October 2019

Tuesday, 15 October 2019

Questions (302)

Michael McGrath

Question:

302. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation if state aid approval has been sought for the €1.2 billion Brexit fund announced in budget 2020; if state aid approval has been given; if state aid rules will be relaxed in the event of a no-deal Brexit; if state aid approval will be fast-tracked in the event of a no-deal Brexit; the length of time it is anticipated to take for state aid approval to be given; if consultation has taken place with the European Commission with regard to state aid rules and the Brexit funding set aside for a no-deal Brexit; and if she will make a statement on the matter. [42051/19]

View answer

Written answers

As announced by my colleague, the Minister for Public Expenditure and Reform, as part of Budget 2020 Government Departments will have access to the €1.2 billion Brexit fund to provide supports in the event of a no deal scenario. 

From this, a contingency fund of €650m has been put in place to support the enterprise, agriculture and tourism sectors.  This will be activated in tranches.  On day one of a no deal Brexit, €110m will be made available to my Department to provide targeted interventions to help vulnerable but viable firms impacted by Brexit.  All supports developed by my Department and its Agencies are in accordance with  State Aid Rules.

My Department and its Agencies are providing extensive supports, schemes and advice to ensure that businesses are prepared for Brexit.  My Department has 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 senior 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. Through the mechanism of the Technical Working Group, Ireland has fully utilised the provisions of the State aid framework to enable the investment by Enterprise Ireland of €74 million in 2018 in Brexit impacted businesses.   Earlier this year, following intense engagement by my Department and the Department of Agriculture, Food and Marine, approval was received to provide capital support to Carbery Food Ingredients based in Cork towards financing a large diversification project to mitigate the impacts of Brexit, and further options are being developed to support large food companies.  The work of this Group is ongoing.

Earlier this year I met with Commissioner Vestager in my Department.  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.  Should issues arise that require an approach that does not fit within the existing State aid rules, this will be raised as part of these Working Group discussions. 

I have received assurances from the Commissioner that the Commission stands ready to act urgently in mitigation against the impacts of Brexit on Irish firms. 

Top
Share