Dáil Éireann Debate, Thursday - 23 November 2017
48. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which she has identified the sectors most likely to be negatively impacted by Brexit; the steps taken to alleviate such an impact; and if she will make a statement on the matter. [49777/17]
Amharc ar fhreagraMy Department and its enterprise agencies are focused on assisting companies to prepare for the UK's withdrawal from the EU. This includes efforts to build awareness of sector-specific challenges that Brexit is likely to pose.
Much of our broader work so far to help mitigate the impact of Brexit on Irish firms is captured in my Department's recently published response paper to the UK's impending exit from the EU, entitled "Building Stronger Business - Responding to Brexit by Competing, Innovating and Trading". This paper summarises the policy measures already taken, outlines future initiatives we intend to take forward and details the steps the Department has taken already to ensure that we can work as efficiently as possible to support our companies.
To inform policy, develop effective mitigation strategies and help prepare Ireland’s position on our trade priorities, DBEI had already published a number of reports and is currently engaged in a suite of studies. A significant amount of this analysis is undertaken at sectoral level.
Completed research includes the outputs from a series of structured engagements with companies (of different sizes, across different sectors and across the regions) and from a survey of a thousand SME business owners to "Understand the Implications of Brexit for Irish SME’s" which my Department published earlier this year. Additionally, a study analysing the "Potential Impact of WTO Tariffs on Cross-Border Trade" was published by InterTrade Ireland in conjunction with my Department in June. This study provides an understanding of the impact of different trade and tariff regimes which might be imposed following Brexit and includes a sectoral focus.
In terms of ongoing research commitments, the Department is currently working on:
- A major study examining the "Strategic Implications arising from EU-UK Trading Patterns". This study will provide an evidence base on key trade and investment questions to inform Ireland’s position as part of the wider negotiation on the UK’s future relationship with the EU. It will quantify the possible impact of a range of Brexit scenarios on trade and investment. The study will provide in-depth analysis of key sectors. It will decompose the potential trade and investment impacts for key sectors and in each scenario identify which elements contribute to the results (i.e. tariffs, non-tariff barriers, transit costs, other trade costs), leading to sector-by-sector understanding of solutions.
- A study examining the "Sectoral implications arising from Brexit" focused on 18 sectors most exposed to the UK is underway and is due to be completed by end 2017. This research examines the implications at firm-level for Ireland’s most exposed enterprise sectors of the UK being outside of the European Single Market and Customs Union. The study is expected to be completed by end 2017.
- A study examining the "Import Content of Irish Exports: Implications of Brexit for Inputs and Competitiveness" and the extent to which Irish firms source intermediate inputs from the UK has just commenced. This research will provide empirical evidence on the import content of Irish firms’ exports, how firms & sectors may be exposed to changes in the trading environment after Brexit and the impact of Brexit on inputs, and competitiveness.
- A study examining the "Skills needs arising from the Potential Trading and Regulatory Implications of Brexit" has commenced – with a particular focus on sectors such as logistics and freight. This research is being undertaken in my Department on behalf of the Expert Group on Future Skills Needs.
The outcomes of this research will inform policy decisions relating to the immediate support for enterprise, developing effective mitigation actions and preparing our longer term desired outcomes from the negotiations.
Our State Agencies are already very active in taking forward projects aimed at helping businesses in Ireland prepare for the post-Brexit commercial environment.
Enterprise Ireland and the LEOs are steadily working with companies to make sure that they are better prepared to respond to the challenges that Brexit will bring. These are the medium term, strategic actions that I know that companies are calling for – things like helping them to drive down costs, diversify into new markets and innovate in the way they do business.
Enterprise Ireland has been systematically engaging with its 1,500 clients that export to the UK and is providing information and guidance, market diversification support and competitiveness and market development support to help companies prepare for the future trading relationship with the UK.
Enterprise Ireland launched the 'Prepare for Brexit' campaign, which features the SME Scorecard tool. The Scorecard is an interactive online platform which can be used by all companies to self-assess their exposure to Brexit and areas they may need to consider preparing further on in the context of Brexit. EI has also introduced a ‘Be Prepared Grant’ which offers up to €5,000 in funding to support exporting client companies develop a Brexit Action Plan. The 'Prepare for Brexit' campaign aims to encourage more SMEs to prepare for Brexit and start putting in place detailed plans to mitigate risks and leverage opportunities that may arise, now that Brexit negotiations have begun. Additionally, InterTrade Ireland, has introduced a scheme to help SMEs avail of expert advice on Brexit.
While progress is being made in helping sectors to prepare, we know much more work remains to be done. That is why we will remain absolutely focused on our Brexit-related initiatives and will continue to explore new avenues and means of helping our companies plan for the future.
