Dáil Éireann Debate, Wednesday - 16 October 2019
144. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation following the announcement in budget 2020 of a transition fund of €45 million for a no-deal Brexit scenario, the details of the monetary amount that will be provided according to financial instruments (details supplied) in tabular form. [42376/19]
View answerAs outlined in the Budget last week, the Government is putting in place an additional contingency package of over €1billion for Brexit supports for the coming year. This contingency will ensure that an initial provision of €110m will be available to my Department and our Enterprise and Regulatory Agencies to provide targeted supports to impacted businesses in the immediate aftermath should there be a no deal Brexit outcome. The provision will also allow for additional tranches of supports to be provided to meet actual needs as the impacts of a No Deal develop.
The Transition Fund is one of the supports announced in Budget 2020. It is contingent on the outcome of negotiations between the United Kingdom and the European Union and will only come into effect in the event of a No Deal Brexit.
This Fund is designed to support businesses in the manufacturing and internationally traded services sector, ranging from food and engineering firms to business process outsourcing firms. It will help businesses to adapt their business model as needed and adjust to the new trading reality.
The Transition Fund is targeted at businesses with 10 or more employees, through grants, equity and loan support of up to €1m dependent on the circumstances of individual firms. The funding mix as between grants, loans or equity will be based on the individual circumstances of impacted firms and their individual viability plans.
It is important to reiterate that this fund is designed to mitigate the negative impacts of a No Deal Brexit and will only be activated if no agreement is reached between the United Kingdom and the European Union.
