Dáil Éireann Debate, Thursday - 17 May 2018
149. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if potential businesses can apply for direct grant aid under the recently announced extension of the rescue and restructuring scheme 2017. [21961/18]
Amharc ar fhreagra150. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the supports and schemes her Department has operationalised since the UK referendum to leave the EU in June 2016 that provide direct grant aid to vulnerable businesses that are impacted by Brexit as opposed to loans. [21962/18]
Amharc ar fhreagraI propose to take Questions Nos. 149 and 150 together.
In 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 Technical 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. An outcome of the Technical Working Group discussions has been the extension of the Irish Rescue and Restructuring (RandR) scheme to include temporary restructuring aid for enterprises facing acute liquid needs. This provides a further 10 million euro of State support to those companies experiencing acute liquidity needs and is in addition to the original 10m euro announced in November 2017 under the R&R scheme. Under RandR guidelines, the temporary restructuring element is in the form of loans repayable over a maximum period of 18 month. However, restructuring aid under this scheme is in the form of direct grants or equity support.
My Department is carrying out extensive work to prepare for all Brexit eventualities. Informed by detailed research, my Department has been 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 launched in April 2018 and which will provide affordable working capital financing to eligible businesses that are either currently impacted by Brexit or will be in the future.
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.
In addition, the EI has a number of other grants in place to support business. The Strategic Consultancy Grant supports the hiring of an outside consultant to assist the company in devising and/or implementing strategic initiatives aimed at improving business function and resilience. It is designed to facilitate business growth as the consultants can act as coach, mentor, facilitator, analyst, negotiator and/or operator for the company. Up to 50% of the costs incurred in hiring a consultant are available up to a maximum grant amount of €35,000.
The Market Discovery Fund provides support to companies to assist them in researching the viability of exporting an existing product/service into a new geographic market, or introducing a new product/service into an existing market. The maximum funding is 50% of eligible expenditure up to a maximum grant of €150,000.
The Agile Innovation Fund is an RD&I grant aimed at clients in sectors with rapid design cycles. It has been developed to support product, service and process innovation to enhance the competitive advantage of Irish companies. The application process is simple and quick, with a short timeframe between application and approval.
Enterprise Ireland is continuing to work with companies to help them to become more innovative. It has rolled out a number of Brexit Advisory Clinics across the country which helps companies to examine their exposure to Brexit and develop effective strategies to mitigate against that exposure. These Clinics are open to both EI clients and non-clients and are delivered free of charge. The next Clinic will take place in Dublin on June 21st at the Aviva Stadium. Topics to be covered include Financial and Currency Management, Strategic Sourcing and Customs, Transport and Logistics, Intellectual Property, Movement of People and Markets.
Enterprise Ireland has also introduced the Brexit: Act On initiative. Under the initiative an independent consultant will come to a company for two half day sessions. The consultant helps companies to decide on specific actions that they can implement over a short period to enable them to address the risks and avail of the opportunities caused by Brexit.
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.
