Dáil Éireann Debate, Wednesday - 21 February 2018
120. Deputy Fiona O'Loughlin asked the Minister for Business, Enterprise and Innovation the contingencies and supports in place to safeguard Irish small and medium-sized enterprises and export businesses from a hard Brexit scenario, including revision of state aid rules; and if she will make a statement on the matter. [8894/18]
Amharc ar fhreagraMy Department is carrying out extensive work to prepare for all Brexit eventualities. Informed by detailed research, my Department is putting in place a package of measures that will allow us to respond to the needs of businesses including the Brexit Loan Scheme which was announced in Budget 2018, and will provide affordable working capital financing to eligible businesses that are either currently impacted by Brexit or will be in the future.
The recent signing of the counter guarantee from the EIB group (through its InnovFin Guarantee) means that the €24 million exchequer funding announced in the 2018 Budget (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) can be leveraged to provide a fund of €300 million. The Brexit Loan Scheme will be open to businesses of fewer than 500 employees which can demonstrate that they are significantly exposed to the impact (or potential impact) of Brexit. They must be a viable business, doing business in Ireland, and they must have a business development strategy demonstrating that they plan to innovate or adapt in response to Brexit. My officials are also examining policy proposals for a new longer-term Business Investment Loan Scheme to support businesses to invest strategically for a post-Brexit environment together with a new Business Finance Advisory Hub service which would focus on business development.
In November 2017, the then Tánaiste met with Commissioner Vestager (who has responsibility for EU State aid policy). An outcome from this meeting was the establishment of a Working Group comprising representatives from DG Competition, the Department of Business, Enterprise & Innovation, Enterprise Ireland and Department of Agriculture, Food and the Marine. The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with State Aid rules. The Working Group has met three times and in between these meetings, there has been engagement on specific issues in order to continue to progress matters. 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.
As one part of a suite of measures to mitigate against the effects of Brexit, a Rescue and Restructuring (R&R) Scheme notified to the Commission was approved in late November 2017. This scheme has been put in place as it is considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances as necessary.
