Dáil Éireann Debate, Wednesday - 21 February 2018
122. Deputy Fiona O'Loughlin asked the Minister for Business, Enterprise and Innovation the status of Brexit-related supports for enterprise and farming, including relaxation of State aid rules, European and Irish grant funding and in market supports in the EU 26 for businesses seeking to increase trade. [8896/18]
Amharc ar fhreagraMy Department, principally through Enterprise Ireland and the LEOs, has continued to promote the importance of businesses preparing for Brexit, and has developed a range of supports to help them achieve this.
(EI) and the (LEOs) are the primary providers of supports to assist enterprises within the indigenous sector that are facing challenges arising from Brexit. They are working vigorously to enable companies to consolidate market share within the UK and also to become more resilient by broadening their sales to other international markets. My Department provided for additional capital funding in 2017 to enable EI and the LEOs to ramp up its supports in light of Brexit to drive improvements in:
- productivity,
- innovation,
- management capability and
- leadership skills.
Specific programmes introduced during 2017 have included;
- An online ‘Brexit SME Scorecard’ to help all Irish businesses self-assess their exposure to Brexit.
- A ‘Prepare for Brexit’ online portal and communications campaign.
- An enhanced programme of trade and investment missions and other trade promotional events.
- A new Eurozone Strategy to increase exports to Eurozone countries by 50% by 2020.
- A new €5k “Be Prepared Grant”(for Enterprise Ireland clients)
- Enterprise Ireland is hosting “Prepare for Brexit” breakfast roadshows nationally to engage with companies.
- Three new strategic communications campaigns launched to target separate elements of Brexit preparedness. ‘Global Ambition’ is aimed at encouraging companies to export; ‘PrepareforBrexit’ highlights actions required by companies to improve resilience; and a new ‘Irish Advantage’ campaign will target Eurozone buyers to buy Irish innovation in key sectors.
- In recent weeks, EI launched its new Market Discovery Fund to help more Irish companies accelerate their market diversification efforts.
The Local Enterprise Office (LEOs) are the ‘first-stop-shop’ for advice and guidance, financial assistance and other supports to those who are interested in starting or growing their own business. The suite of LEO Brexit supports available to micro and small businesses through the 31 LEOs nationwide include:
- Access to the ‘Brexit SME Scorecard’ online tool where micro and smaller businesses can self-diagnose their readiness for Brexit;
- 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;
- Rollout of ‘Lean for Micro’ nationwide which will make small businesses more efficient and competitive;
- A ‘LEO Innovation and Investment Fund’ pilot programme to support innovation in micro-enterprises and get them investor ready to scale their businesses;
- Tailored mentoring to address Brexit related business challenges;
- Targeted training on specific Brexit challenges, including financial aspects and capability building in innovation, competitiveness and opportunity diagnosis; and
- Continued information, advice and guidance across all 31 LEOs and regionally.
The additional Brexit supports on offer through the LEOs are focused on capability building, market diversification, driving increased competitiveness, and promoting innovation so that LEO client companies can better cope with the challenges arising on foot of Brexit and to explore any opportunities presented.
The Brexit Loan Scheme, which was announced in Budget 2018 and will be launched in March of this year, is a €300 million loan scheme offering working capital loans at interest rates of 4% or less to eligible Irish SMEs and small mid-caps of less than 500 employees. The scheme is 60% funded by my department, and the remaining 40% has been funded by the Department of Agriculture, Food and the Marine with the expectation that at least 40% of the fund will be drawn down by food businesses.
On the State Aid aspects, 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.
On the Trade aspects, Enterprise Ireland is working with client companies through a network of market and sector advisers from 10 offices located throughout Ireland and 33 international offices across the globe. Along with additional staffing, 2017 also saw an enhanced programme of over 145 international trade events to target opportunities on a sectoral basis.
Enterprise Ireland’s 2017-2020 Strategy aims to increase the diversification of client exports into new markets, with two-thirds of exports going beyond the UK.
On the 15th May 2017, Enterprise Ireland launched a new Eurozone Strategy to assist Irish exporters increase exports in Eurozone countries by 50%, from €4 billion to €6 billion by 2020. This strategy will be accompanied by a new ‘Irish Advantage’ communications campaign which will target Eurozone buyers to buy Irish innovation in key Brexit impacted sectors such as med-tech and engineering.
The diversification strategy is focused on geographical markets, and on diversifying into new market segments. The activities of Enterprise Ireland’s overseas network are supported by the Market Research Centre and Strategic Marketing Unit based in Dublin along with a range of financial and capability developments supports aimed at helping client companies to achieve this growth in overseas markets.
In relation to Brexit related supports for farming that question would be best answered by my colleague Minister for Agriculture, Food and the Marine.
