Dáil Éireann Debate, Tuesday - 14 July 2020
44. Deputy Peter Fitzpatrick asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to deal with a no-deal Brexit; if businesses along the Border will be supported by measures that will lessen the impact of a no-deal Brexit; and the measures he is considering to help businesses through a no-deal Brexit (details supplied). [15749/20]
View answerMy Department and its agencies have put in place extensive supports, schemes and advisory resources to ensure that businesses around the country are prepared for Brexit. These measures aim to assist businesses in identifying key risk areas and the practical preparatory actions they can take in response to the UK’s withdrawal from the EU.
InterTradeIreland’s [ITI] Brexit Advisory Service offers a focal point for businesses working to navigate changes in cross-border trading relationships as a result of Brexit. As part of this service, ITI has run a series of awareness-raising events to help improve knowledge of customs processes and procedures, as well as identifying actions businesses cant take in areas like logistics and supply chain management.
ITI’s Brexit Planning Voucher enables eligible businesses to seek professional advice on how best to plan and prepare for Brexit. This support helps businesses obtain advice on specific areas such as tariffs, currency management, and regulatory and customs issues. Vouchers are worth up to €2,250 (inclusive of VAT) each.
ITI has also launched a further financial support in the form of the Brexit Implementation Voucher, which offers financial support up to £5,000/€5,625 (inclusive of VAT), with InterTradeIreland paying 50% towards implementing critical changes in relation to Brexit matters.
The network of Local Enterprise Offices (LEOs) around the country is the first-stop-shop for anyone seeking guidance and support on starting or growing their business, including businesses in the border counties. The LEOs have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit. The LEOs also offer customs training workshops to support businesses trading with third countries in advance of the UK’s withdrawal from the EU.
The LEOs also engage in a number of other schemes to help businesses prepare for Brexit. The Technical Assistance Grant for Micro Export is offered as an incentive for LEO clients to explore and develop new market opportunities.
The six LEOs in the Border region are also working together with their Northern Ireland counterparts under the EU Co-Innovate Programme. The aim of Co-Innovate is to give SMEs from the manufacturing and tradable services sectors in the eligible regions the tools and tailored support to help them to innovate, differentiate and compete successfully.
The Brexit Loan Scheme provides relatively short-term working capital, for up to three years, to eligible businesses with up to 499 employees to help them innovate, change or adapt to mitigate their Brexit challenges. The scheme is open to eligible businesses from all regions of the country, including those in the Border counties. Dublin aside, the most recent quarterly report shows that the border region is the most active region in terms of eligibility applications for the scheme.
The Future Growth Loan Scheme provides a longer-term facility, for 8-10 years, of up to €300m to support strategic capital investment for a post-Brexit environment 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 €100,000 (€50,000 for primary agriculture) to €3 million, 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. As of 3 July, there have been 4,200 eligibility applications received, of which 3,960 have been approved and 1,126 loans progressed to sanction at bank level to a value of €244.34 million.
Enterprise Ireland [EI] has established a Prepare for Brexit online portal and communications campaign, as well as an online “Brexit SME Scorecard” to help Irish businesses self-asses 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.
EI’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.
While we have seen strong uptake of the Brexit supports available to businesses, I am conscious that the prolonged uncertainty around the Brexit process may have led businesses to have deferred their preparations, and that this has likely been exacerbated by the Covid-19 pandemic. It is important to understand that the UK’s withdrawal from the EU will bring change for Irish businesses and I want businesses, particularly those around the Border counties to know my Department and agencies are here to help.
