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Brexit Issues

Dáil Éireann Debate, Thursday - 9 February 2017

Thursday, 9 February 2017

Ceisteanna (7)

Brendan Smith

Ceist:

7. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation if she will direct the State's industrial promotion agencies to place a particular focus on the needs of the Border region, given the particular challenges that will arise for that region due to Brexit; and if she will make a statement on the matter. [6175/17]

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Freagraí ó Béal (17 píosaí cainte)

As the Minister is aware, there are particular challenges facing business and commerce in the Border region due to Brexit. We need a particular focus by the State's industrial promotion agencies on assisting companies to maintain and, hopefully, to grow employment. There is a particular need to assist those companies to remain competitive. Many of the companies in the Border region, mainly small and medium enterprises, depend on the sterling area to which they export their products and currency fluctuations cause them particular problems. There is a need for the Government to introduce, as was done in 2009, particular measures to assist companies that are impacted by currency fluctuations.

Enterprise Ireland, EI, the local enterprise offices, LEOs, and IDA Ireland are engaging on a one-to-one basis with all client companies regarding the impacts being felt as a result of Brexit. All agencies have clear plans in place. In budget 2017, I secured additional moneys, both current and capital, to support the enterprise agencies' strategic response to Brexit.

More than €1 billion of Enterprise Ireland client companies' exports go to Northern Ireland and I am very conscious of the challenges that may be faced by companies operating in close proximately to the Border. My Department is funding a research project to inform future responses on a sectoral basis. That research is being conducted by InterTradeIreland. The LEOs are working in partnership with EI to roll out targeted initiatives to drive innovation, market diversification, cost competitiveness and business management. IDA Ireland has a clear Brexit plan which is being executed and includes one-to-one investor engagements, public relations and media campaigns and an international marketing campaign. InterTradeIreland also has a programme of initiatives to deal with the practical consequences of Brexit for cross-Border trade.

The regional action plan for the north-east-north-west region aims to support the creation of 28,000 jobs across counties Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth by 2020. There has been strong progress to date, with 5,600 more people in employment across the region since the start of 2015.

I thank the Minister for her reply. As she is aware, for historical reasons during the awful period of the Troubles, it was extremely difficult to attract inward investment to the Border region, to places like Monaghan, Donegal and Cavan. We had to depend on indigenous industry. By and large the industries in the counties of the Border region, including my own constituency, are small and medium-sized enterprises. The briefing note prepared for the Minister by the various agencies states that they are engaged with all companies. However, there may be companies with half a dozen to a dozen employees that have not sought the assistance of Enterprise Ireland or any other statutory agency in the past. It is very important that all industries and enterprises are spoken to, involved in negotiations and given details of what assistance can be made available to them. I emphasise that many of the companies in my particular area are heavily or completely dependent on exports to the sterling area. There should be a plan in place so that if there is currency instability, a mechanism would be activated to support those enterprises that experience immediate problems in their export markets.

The Minister said earlier that there was a 10% increase in the budget for these agencies as a result of Brexit. Obviously we all welcome that. I have four very specific questions for the Minister. I am looking for specific figures which, I presume, the Minister will be able to give me off the top of her head or else they will be in her supplementary notes. What is the total number of additional staff members in the IDA to deal with Brexit? How many IDA staff members are there in Britain? How many staff members are in the London office? What is the total headcount of the IDA in February 2017 compared with February 2016? In summary, I want to know the number of extra staff members in the IDA to cope with Brexit, the number of staff members in Britain and in London and the total headcount this month versus this time last year.

It would be rather difficult, I suspect, for the Minister to produce that type of detailed information when it is not listed in the question. Perhaps the Minister has the information-----

First, the Deputy asked me how many extra staff are in IDA Ireland-----

I ask the Minister to respond to Deputy Brendan Smith first.

Certainly, but just to say there are nine additional staff in IDA Ireland and 39 in Enterprise Ireland.

Deputy Brendan Smith spoke about the Border and specifically about companies that are not under the auspices of Enterprise Ireland or IDA Ireland. There are two main agencies that can help such companies. The LEOs will speak to and advise small companies. The other relevant agency is InterTradeIreland, which has published a fact sheet for companies. A series of information sessions for companies has been held, with a further programme of such sessions planned. An initial series of meetings in eight different locations around the country are also being developed. One such meeting was held recently in the Border area. Further information and awareness events will be initiated in due course. InterTradeIreland will review and adjust its supports, if necessary, as new rules and regulations emerge. In the short term, InterTradeIreland is planning to put processes in place to ensure that it is in a position to provide information to small and medium-sized enterprises. InterTradeIreland will also monitor business needs and challenges through its business monitor survey process so that it is in a position to respond quickly to business concerns. My Department is establishing two initiatives to address cross-Border trade issues.

I thank the Minister for her response. I would like to record my appreciation of the work that InterTradeIreland has done since its establishment following the Good Friday Agreement in 1998. It is an all-Ireland body that does exceptionally good work. I hope it is adequately resourced to do the very important work that will be required over the next few years.

I have another issue, on which I do not expect a reply from the Minister, about two substantial landbanks. One is in Cavan town of 40 acres is owned by IDA Ireland. It is serviced and available for the location of industry. Similarly, there is a site in Monaghan town that is a substantial landbank owned by IDA Ireland. I would appreciate if the Minister could speak to the chief executive officer and the senior officials of IDA Ireland on the potential and the need to market those locations. It would be a timely booster of confidence for the Border region if we were to attract some industry to the area, be it the development of an indigenous industry or a foreign direct investor. I appeal to the Minister to speak to the senior people in IDA Ireland to put a particular focus on the needs of Cavan and Monaghan.

Has Deputy Kelly a further comment?

I just ask the Minister for a reply.

If Deputy Kelly has a biro he might just write down all the figures I am going to give to him. Enterprise Ireland has 570 staff in full-time equivalent posts before the Brexit-specific recruitment of 39 staff takes effect.

IDA Ireland had 268 staff - and I shall quiz Deputy Kelly on these figures - in 259 full-time equivalent posts before the Brexit-specific recruitment of upwards of 21 staff takes effect. Science Foundation Ireland has 47 staff, 46.5 whole-time equivalent posts, before Brexit-specific recruitment of two additional staff takes effect while the Health and Safety Authority has 167 staff, which we will be increasing by two additional staff to deal with specific Brexit issues. IDA Ireland has 21 additional staff resources to enable it to meet the jobs and investment targets, as set out in the strategy Winning: Foreign Direct Investment 2015-2019 and to meet the global challenges. The agency has also submitted a further staff resourcing strategy and has sought sanction for the retention of the 35 staff members who were hired on the three-year fixed term contracts under the winning abroad programme. An allocation of €2.75 million was made for extra staff, nine extra staff members for IDA Ireland and 39 extra staff members for Enterprise Ireland since Brexit was announced.

With regard to Deputy Smith's issue, I will talk to IDA Ireland. Deputy Smith was at the meeting held in my office with the Cavan-Monaghan Oireachtas Members, the county councillors and the Senators from the area.

I believe the Deputy would have heard IDA Ireland senior staff there give that commitment and we also spoke about those sites that are on sale and are marketable. As a result of that meeting, there is now a focus to ensure that jobs - and IDA Ireland jobs - are landed in Cavan and Monaghan.

I would appreciate if the Minister would bring it up again.

I will of course. Absolutely.

I think that the teacher was coming out in the Minister, Deputy Mitchell O'Connor.

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