Dáil Éireann Debate, Wednesday - 7 February 2018
72. Deputy Stephen S. Donnelly asked the Minister for Business, Enterprise and Innovation the status of Brexit-related supports for Irish enterprise and farming, including relaxation of state aid rules, European and Irish grant funding and in market supports in the EU26 for businesses seeking to increase trade. [53147/17]
Amharc ar fhreagraBrexit presents a significant challenge for Irish companies and the Government, through Enterprise Ireland, is seeking to build resilience within client companies. Brexit will drive companies to focus on increasing their competitiveness, on innovation and product differentiation in parallel with targeting new export markets.
In January 2017, Enterprise Ireland launched a new strategy, Build Scale, Expand Reach 2017 – 2020. At the centre of this strategy are strategic targets focused on:
- Assisting clients to create 60,000 new jobs by 2020 while sustaining the existing record level of jobs;
- Growing the annual exports of client companies by €5bn to €26bn per annum;
- Increasing the level of spend made by client companies in the Irish economy by €4bn to €27bn per annum by 2020; and
- Inspiring more Irish owned companies to have global ambition.
In May 2017 Enterprise Ireland launched a new Eurozone Strategy to assist Irish exporters increase exports in Eurozone countries by 50% by 2020. This strategy is accompanied by the ‘Irish Advantage’ communications campaign which will target Eurozone buyers to buy Irish innovation in key Brexit impacted sectors, such as medtech and engineering.
Enterprise Ireland is constantly developing its offer and services to better react to client needs. For example, Enterprise Ireland has made changes to its Research, Development and Innovation offer to enable “Agile R&D projects” to meet immediate market and customer needs. In addition, Enterprise Ireland organised 57 internationally focused trade events in 2017 including trade missions to Canada; Singapore and China; the UAE and Oman and a major trade programme as part of the State’s visit to Australia. Led by Irish Government Ministers these trade missions are a central element of Enterprise Ireland's strategy to support companies with global ambition.
In March 31, Enterprise Ireland launched its ‘Brexit SME Scorecard’, a new interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars. The Scorecard generates an immediate report which contains suggested actions and resources, and information on events for companies to attend, to prepare for Brexit. To date 1909 companies have engaged with the Brexit Scorecard.
Enterprise Ireland has also launched a “Be Prepared Grant” that supports the costs of SME clients in preparing a plan to mitigate risks and optimise opportunities arising from Brexit. It can be used to help cover consultancy, travel and out of pocket expenses associated with researching the direction of their Brexit action plan. To date, 80 companies have been approved for a “Be Prepared Grant” by Enterprise Ireland.
A lot can be done within the existing EU State Aid Framework. In October 2017, the then Tánaiste announced a Brexit Loan Guarantee scheme for SMEs. The Scheme will provide affordable working capital loans of €25,000 to €1.5 million to eligible Irish businesses that are either currently impacted by Brexit, or will be in the future.
The Strategic Banking Corporation of Ireland (SBCI) recently issued an open call inviting finance providers to participate. This closed on 8 December. It is expected that the Scheme will be launched in the first quarter of 2018 and will run for two years.
My Department is also exploring the development of a Longer-Term Brexit Investment Loan Scheme, as well as a Business Advisory Hub. The advisory hub will serve to ensure that SMEs are well informed of their funding and financing options and strengthen their financial planning skills.
In November 2017, the EU Commission approved a Rescue and Restructuring scheme for Ireland which is now available to SMEs in difficulty. Under the scheme an undertaking is considered to be in difficulty when, without intervention by the State, it will almost certainly be condemned to going out of business in the short or medium term. This scheme has been put in place as it was considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances as necessary. However, I do not expect that there will be a need for the State to provide rescue/restructuring aid to companies.
All these schemes detailed above will operate within existing state aid rules.
In addition, in November 2017, the then Tánaiste, Francis Fitzgerald, met with the Commissioner for Competition, Margrethe Vestager. An outcome from this meeting was the establishment of a Working Group comprising representatives from DG Comp, my Department, Enterprise Ireland and the Department of Agriculture. The objective of the Group is to scope and design further schemes to support enterprises impacted by Brexit in line with current applicable State Aid rules. The work of this Group has already commenced and will continue into 2018. Should issues arise that require an approach that does not fit within the existing State Aid rules, this will be raised as part of the Working Group discussions.
Supports for the farming sector comes within the remit of the Minister for Agriculture, Food and Marine and I understand that Minister Creed has introduced a range of budgetary measures under competitiveness and market/product diversification pillars to help mitigate the more immediate impacts of Brexit on the agrifood sector.
