The Government is intensifying efforts to address the challenges facing Irish companies as a result of Brexit. Those efforts are focused on minimising risks and maximising opportunities by ensuring the growth and resilience of Irish enterprise across the following four pillars:
- Helping firms to compete: The Government is taking a cross-Departmental approach to create the conditions necessary for companies to expand, export and create jobs. This includes providing access to finance, our tax regime and infrastructure spend, as well as ensuring that enterprise agencies are appropriately resourced to assist companies in their drive for competitiveness.
- Enabling firms to innovate: As part of our strategy to become a Global Innovation Leader, we are targeting R&D funding through our Agencies to support innovation in new products and processes which firms need to compete and grow and to invest in the next generation of innovators.
- Supporting firms to trade: We are supporting firms to start exporting, to grow their exports in existing markets and to diversify into new markets and regions. We will continue to attract overseas investment while working with EU partners to expand the portfolio of Free Trade Agreements.
- Negotiating for the best possible outcome: We are working across Government to ensure we get the best outcome possible for business from Brexit negotiations. My Department is leading a range of Brexit research projects which will provide an extensive evidence base and valuable analysis to inform and guide Ireland’s position within the EU-27.
To underpin this strategy, as part of Budget 2018, a new €300m Brexit Loan Scheme will provide affordable financing to Irish businesses that are either currently impacted by Brexit or will be in the future. The new scheme is open to all trading SMEs and large firms employing less than 500. The scheme will see a sizeable reduction in interest rates charged for lending to circa 4%. The new scheme will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through commercial lenders, to get much needed low-cost working capital into Irish businesses.
My Department is also exploring the development of a longer-term Business Development Loan Scheme which would assist firms in long term investing for a post-Brexit environment. My Department is also scoping the development of a Business Advisory Hub which would assist SMEs to make informed funding/investment decisions and helps them avail of private market solutions or existing State supports.
Budget 2018 also provides for an additional €3 million in funding for enterprise agencies to allow for the recruitment of a further 40-50 Brexit-related staff. This will ensure a joined-up response to Brexit and help Irish exporters to grow their international sales and diversify their markets, and to secure new investments for Ireland. Those enterprise agencies serve a vital role in equipping SMEs for the challenges posed by Brexit. Through those agencies, the following supports are available or will be available:
1. Enterprise Ireland (EI)
The suite of supports that EI offers to Irish businesses in the SME sector is broad, encompassing leadership, management development and training, internationalisation, productivity, RD&I, capital investment and access to finance.
EI will continue to regularly engage on a one-to-one basis with clients to support their preparations for Brexit. In addition, it promotes awareness and preparation for Brexit through the Brexit SME scorecard, an interactive online platform developed by EI and open to all Irish companies to self-assess their exposure to Brexit. It will promote export ambition and market diversification through the Global Ambition Campaign, will deliver an extensive programme of trade missions, market access programmes and other schemes in support of market diversification, and will roll out the #IrishAdvantage campaign to promote the attractiveness of Irish goods and services in export markets.
In addition, EI will ensure that our regions maximise their potential to grow and scale resilient Irish companies through the Regional Enterprise Development Fund. This regional competitive fund is designed to support the ambition, goals and implementation of the Regional Action Plans for Jobs. EI, with the support of my Department, is leading in the development and implementation of this Fund of up to €60m.
2. IDA
IDA Ireland is constantly engaged with clients across its entire portfolio. Brexit has become a significant feature of IDA Ireland’s strategy spanning all of its activities, including operations activities, overseas, finance, planning marketing and promotion departments.
IDA Ireland continues to work on ensuring that the Agency’s strategy is fit for purpose in light of Brexit and will continue:
- To work with its existing client base to assist and support them in their growth and expansion in Ireland.
- To highlight Ireland’s continued strong offering based on talent, ease of doing business, its competitive and transparent taxation regime, English as the spoken language and critically Ireland’s continued access to the EU market
- To be in contact with clients, and prospective clients across the globe and continue to market a competitive value proposition to attract mobile foreign investment from global locations including the UK.
3. InterTrade Ireland
InterTrade Ireland (ITI), the Cross-border Body which my Department co-funds, assists businesses in Ireland to address the particular commercial challenges that Brexit may present for cross-border business. That Body already has developed considerable experience in promoting and strengthening North-South trade. The Government provided €250,000 in additional funding to ITI this year to allow it to undertake a range of initiatives aimed at better preparing Irish SMEs. This included the introduction of a Brexit readiness voucher scheme, strengthening the body's capacity to deliver expert advice, provision of information sessions and building awareness amongst SMEs of Brexit-related challenges. It also involves capability building and the provision of other specialist expertise.
4. Local Enterprise Offices (LEOs)
LEOs provide access to a range of supports for small businesses. These include innovation vouchers, trading online vouchers, lean start and management development supports.
As a result of the additional €4m in capital funding secured in Budget 2017 and maintained in 2018, a suite of LEO Brexit supports are available to small and micro businesses through the 31 LEOs nationwide. These supports, which are aimed at strengthening the capacity of small and micro businesses to better cope with the changing external environment, especially Brexit, include:
- A suite of online information addressing practical issues aimed at micro-enterprises;
- A ‘Technical Assistance for Micro-enterprises’ grant designed to support qualifying businesses to diversify into new markets, enabling companies to explore and develop new market opportunities;
- A ‘Lean for Micro’ programme available nationwide to help small businesses become more efficient and competitive;
- A ‘LEO Innovation and Investment Fund’ pilot programme to support innovation in micro-enterprises and to help them become investor ready so that they can scale their businesses;
- Tailored mentoring to address Brexit-related business challenges.
