Dáil Éireann Debate, Wednesday - 18 April 2018
21. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation if she is satisfied with the funding her Department has allocated to the IDA, EI and ITI to enable each body to mitigate the potential effects that Brexit may have on the economy. [16827/18]
Amharc ar fhreagraWe are ten months from Brexit and my concern is whether the Minister believes the funding provided by her Department to IDA Ireland, Enterprise Ireland and InterTradeIreland will be enough to help those agencies to mitigate the effects of Brexit. I know it is a difficult question to answer because we do not know what type of Brexit we are facing. Does the Minister believe the funding allocated to those agencies will be enough to help to mitigate the effects Brexit may have on Ireland's economy?
I thank the Deputy for raising this issue. I am confident the enterprise agencies under my Department's remit have the necessary support and financial resources to enable them to address the challenges of Brexit and to capitalise on any opportunities it presents.
IDA Ireland was allocated an additional €700,000 as part of budget 2018 to further reinforce the €750,000 funding in 2017 to increase its staffing levels in the context of Brexit. This has significantly strengthened the agency's capacity to engage with firms about investing in Ireland, as well as addressing Brexit-related issues for the agency's current client base. More resources were also made available to the agency to allow for an increase in Brexit-related marketing and communication activities. This has included a new multi-media marketing campaign, targeting international investors, that highlights the advantages of locating or expanding in Ireland.
These additional resources are already helping IDA Ireland to produce results. To date, IDA Ireland has secured approximately 20 new Brexit-related investments from a number of different sectors. There remains potential to attract even more such foreign direct investment and I know IDA Ireland is working hard to convert further opportunities into new projects here in Ireland.
Enterprise Ireland is actively supporting its client companies through its offices at home and across the globe to become more competitive and innovative and to diversify Ireland's export footprint into more markets in response to Brexit. Its capacity to assist Irish firms to deal with Brexit was originally reinforced by its pay provision for 2017, which included an additional €1.7 million to assist in the recruitment of 39 additional Brexit-specific posts. For 2018, to further assist Enterprise Ireland's response to Brexit, the agency was allocated an additional €1.3 million. I understand that Enterprise Ireland intends to recruit approximately 20 additional staff members as a result of this extra funding.
InterTradeIreland also has an important role to play in the context of Brexit, particularly in sustaining North-South trade. The body is uniquely positioned to understand the needs of businesses engaged in cross-Border commerce and it has been working hard to help its clients to prepare for the potential challenges associated with the UK's withdrawal from the European Union.
I thank the Minister for her response. As I said earlier, Brexit is edging closer and we still have no picture of what it will look like. The issue of the Border has been long-fingered both in December last year and again in March. We need clarity and a firm commitment from the Government on this, the most vital concern to the island and its people. I am extremely concerned that the weak Tory Government in London with the DUP influence could end up scuttling the whole Brexit deal simply to promote the nationalist England-first agenda.
This morning the President of the European Council, Donald Tusk, reaffirmed the position that there would be no withdrawal agreement without a solution to the Border. With the British Foreign Secretary, Boris Johnson, ridiculously talking about London borough borders and the British Prime Minister, Theresa May, recently citing the completely unacceptable US-Canada model, this is a cause for huge concern.
Unfortunately we need to start thinking about real contingency plans for what will probably be a hard Brexit. Has the Department of Business, Enterprise and Innovation come up with concrete plans for such an outcome? For instance, what will the M1 between Dundalk and Newry look like on 31 March 2019 if no deal is struck before then?
I have a range of different supports available through the different agencies to support businesses to prepare for Brexit and help them mitigate the impact of Brexit on their businesses.
The Department secured an additional €3 million in current funding and €5 million in capital funding in 2018, increasing the record capital allocation in 2017. The additional €3 million in current funding will support the recruitment of 40 to 50 staff across the different agencies to meet the Brexit challenge. This brings the number of new Brexit-related staff posts to approximately 100 in the past two years and demonstrates the Department's determination to ensure that it, together with all the offices and agencies, is sufficiently resourced to meet the Brexit challenge.
My Department established a dedicated Brexit unit in 2016. The unit is led by an assistant secretary within the EU affairs and trade policy division. It co-ordinates and represents the Department's and agencies' response to Brexit, and supports me in my position on the Cabinet committee dealing with Brexit. The unit continues to undertake a range of important Brexit-related tasks.
The Government is working very hard to get the best possible deal for Ireland as part of the EU negotiating team. We have consistently called for the closest possible relationship with the UK after Brexit. Considerable work is going on across Government to ensure we get the best possible deal for Ireland.
While I appreciate what the Minister has said, clearly the Government's message is not getting through to those in business to whom we have spoken and who have also appeared before the Oireachtas Joint Committee on Business, Enterprise and Innovation.
PricewaterhouseCoopers recently suggested that with less than a year to go a hard Brexit is the most likely outcome. I appreciate that a hard Brexit is just a possibility at this stage, but citizens and businesses deserve to know the range of possibilities they may encounter. If the past behaviour of the British Government is anything to go by, things will only get worse between now and March 2019. Does the Minister have an explanation for why the uptake of the Government's supports for business has been less than desirable? Are the criteria too strict or the administration burden too great especially for small businesses?
Has the Department secured any commitment from the European Union on funding or assistance for a hard Brexit and if so what is the amount of that funding?
Enterprise Ireland and InterTradeIreland will no doubt be inundated with calls and queries in the lead up to next March and beyond. What plans does the Department have to increase staff numbers and resources even temporarily if such a possibility of a hard Brexit occurs?
I recently launched a brochure which outlines all the different supports we are providing to businesses through the agencies and directly. I recently announced the €300 million Brexit loan scheme. Bord Bia, the Health and Safety Authority and a whole list of agencies are supporting people on Brexit. It is a very short document and is on the Department's website. I believe I also provided it to every Deputy. It outlines what we are doing in preparing for Brexit. I urge companies to contact their local enterprise office. Many supports are available.
We got approval from the European Union for the €10 million rescue and restructure scheme, to be administered by Enterprise Ireland. We have developed a number of different initiatives. IDA Ireland staffing is at a record high and Enterprise Ireland is increasing its staff. Many supports are available and people need to use them. I encourage people to get this very useful brochure.
