Dáil Éireann Debate, Tuesday - 6 March 2018
113. Deputy Niall Collins asked the Minister for Business, Enterprise and Innovation if her Department requested at EU level a Brexit adjustment support fund within the EU’s structural and investment funds to mitigate the negative exposure of companies from a hard Brexit. [10821/18]
Amharc ar fhreagraIn November 2017, the then Tánaiste met with Commissioner Vestager, the European Commissioner for Competition who has responsibility for EU State aid policy to discuss, amongst other things, the impact of Brexit on Irish businesses. An outcome from this meeting was the establishment of a Working Group comprising representatives from DG Competition, the Department of Business, Enterprise and Innovation, Enterprise Ireland and the 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.
My 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 which 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. This scheme will be operated within De Minimis State Aid Regulation.
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 and a new Business Finance Advisory Hub service which would focus on business development.
The Agencies of my Department are at the forefront in working with firms to ensure they are equipped to deal with Brexit and to enhance their performances in an increasingly competitive global trading environment through lean programmes, skills development and reducing business costs.
Enterprise Ireland (EI) has launched the 'Brexit SME Scorecard', an interactive online tool which can be used by all Irish companies to self-assess their exposure to Brexit. EI is also offering a 'Be Prepared Grant' of up to €5,000 to support clients to develop a Brexit Action Plan and it continues to support clients to improve their competitiveness, acquire new markets and enhance management skills.
The Local Enterprise Offices (LEOs) are organising workshops, seminars and training to assist companies to better understand the challenges of Brexit and have a range of supports to help clients to respond to those challenges, to become more competitive and to source new markets.
InterTrade Ireland is also working to minimise the impact of Brexit on north-south trade.
