Written Answers Nos 144-150
144. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the number of full-time and part-time staff in the dedicated Brexit unit within her Department by staff grade in tabular form; and if she will make a statement on the matter. [21956/18]
Amharc ar fhreagraA dedicated Brexit Unit was established in my Department in 2016 and is led at Assistant Secretary level within the EU Affairs, Brexit and Trade Policy Division, to coordinate and represent the Departmental and Agencies response to Brexit and to support me in my position at the Cabinet Committee dealing with Brexit. The Assistant Secretary is supported by a staff compliment of seven (one Principal Officer, three Assistant Principal Officers, two Higher Executive Officers and one Clerical Officer). This Unit also leads on engagement with a broad range of stakeholders to inform and validate our response to Brexit.
Given the wide mission that my Department has, the UK’s decision to leave the European Union continues to impact significantly on all policy fields across my Department as well as our family of Agencies. In this regard, staff expertise has been drawn from across a number of different policy areas and they have been assigned to additional postings across the whole Department that have been most impacted by Brexit. We are continually prioritising the Brexit challenges and will actively keep the staffing requirements under review through workforce planning.
145. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if she will report on the recent state aid modernisation working group meeting which took place here in April 2018; and if discussions with respect to changing state aid thresholds at EU level were held. [21957/18]
Amharc ar fhreagra151. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if her Department has completed or is sending a formal application to Directorate General for Competition requesting that the state aid ceiling under EU Regulation No 1407/2013 be temporarily adapted as a policy response to protect vulnerable businesses that are impacted by Brexit. [21963/18]
Amharc ar fhreagra152. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if she has requested other member states to support a formal application to Directorate General for Competition requesting that the state aid ceiling under EU Regulation No 1407/2013 be temporarily adapted as a policy response to protect vulnerable businesses that are impacted by Brexit; and the member states contacted on the matter since the UK referendum to leave the EU in June 2016. [21964/18]
Amharc ar fhreagraI propose to take Questions Nos. 145, 151 and 152 together.
The State Aid Modernisation Working Group meeting took place in Dublin on 27 April 2018 and was attended by State Aid experts from the 28 Member States. The Agenda comprised:
- Welcome speech by Dr Orlaigh Quinn, Secretary General, DBEI
- Presentation of the organisation of Ireland on State aid – State Aid Unit, DBEI
- Preparation of the next High-Level Forum: presentation by the Chair (France)
- Outcome of the monitoring exercise: presentation by the Commission
- Start-ups and scale-ups: introductory point with a presentation from Belgium
- Economic / non-economic activity and ancillary activity: presentation by the Commission, Denmark and the Netherlands
The mandate of the Group is to discuss best practice, share information and knowledge etc and this feeds into the High-Level Forum on State Aid which meets 1 – 2 times a year. It is not a policy forum and therefore it is not the forum to discuss changes to State Aid thresholds in the context of Brexit.
In terms of discussions in relation to State aid, 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& 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 monthly since November 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 Technical Working Group discussions and not at the State Aid Modernisation meeting.
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 March 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.
By using a 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) has been leveraged to provide a fund of €300 million. The Brexit Loan Scheme is 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 operates within De Minimis State Aid Regulation.
On 4 May 2018 the EU Commission approved an extension to the Rescue and Restructuring Scheme for Ireland to include temporary restructuring aid. 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 Rescue and Restructuring scheme. Together with the Brexit Loan Scheme, this temporary restructuring aid will provide valuable stabilisation to businesses as they respond to the immediate and long-term impacts of the UK’s decision to leave the EU.
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.
146. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on the impact of potential new trade sanctions reported in the media (details supplied) in view of the volume of exports to Iran. [21958/18]
Amharc ar fhreagraIreland shares the views expressed by the EU High Representative for Foreign Affairs and Security Policy, Fredrica Mogherini, that the EU deeply regrets the announcement by the US that it will withdraw from the Joint Comprehensive Plan of Action (JCPOA) which was signed by the "E3+3" Group with Iran. The EU remains committed to the continued full and effective implementation of the JCPOA. The lifting of sanctions against Iran under the JCPOA has led to a positive impact on trade and economic relations with Iran, and its commitment to ensuring that this can continue to be delivered in the interests of improved geo-political stability.
Form a trade perspective, Iran, with a population of 80 million, and a relatively wealthy middle class, is a potential market worthy of further exploration for Irish exporters. However, I share concerns that the recent announcements by the US Administration are likely to have a negative effect on this growth potential. I am particularly concerned at reports that the US may consider imposing sanctions on European companies that do business in Iran following their withdrawal from the Agreement.
According to CSO figures, Irish goods exports to Iran nearly doubled from €72 million in 2016 to €143 million in 2017, primarily due to an increase of €67m in the General Industrial Machinery Category. Overall however, exports to Iran are a very small proportion of Ireland's total global goods exports - amounting to only 0.1% of Ireland’s total goods exports in 2017.
Ireland’s principal exports to Iran have usually been in the Medical and Pharmaceutical Products Category (exports of €26 million in 2017, which is 0.1% of Ireland’s global exports in this category); and Soft Drink Concentrate (exports of €22 million in 2017, which is 0.3% of Ireland’s global exports in this category).
Goods imports from Iran to Ireland increased from €1.6 million in 2016 to €3.5 million in 2017. These are nearly all in the sectors of fuel and vegetables/fruit. According to the CSO, there is no services trade with Iran.
Further, according to CSO data, there is no record of Iranian foreign direct investment into Ireland.
Despite the alleviation of sanctions under the JCPOA, there remain practical difficulties for Irish businesses seeking to do business in Iran. The continuance of some US financial sanctions, has meant that European banks - including Irish institutions - have been cautious with regard to engaging in financial transactions with Iran. In addition, Iran is often not included as a covered geographical territory for travel insurance and/or other types of business insurance, where the insurance company is from the US, or has a US mother company, and travelling to Iran negates the visa waiver for Irish passport holders travelling to the US.
Despite these difficulties, Enterprise Ireland (EI) continues to support the efforts of Irish companies wishing to trade with Iran, while highlighting the practical difficulties of doing business there. The primary sectors where Irish companies could potentially increase their presence since the easing of sanctions are: aviation; financial services and software; ICT telecommunications and mobile software; education services; agritech/food production; and lifesciences and pharma. EI has previously brought trade delegations to Iran, and also held a 'Doing Business with Iran' Event in Dublin in July 2017, which 35 EI clients attended. EI has also secured the services of an in-country Iranian market expert/pathfinder, to provide advice and assist EI clients to may encounter difficulties due to the re-imposition of sanctions or the threat of same.
As regards client companies of EI, the precise consequences arising from the very recent announcement by the US Administration of its withdrawal from the JCPOA are still being analysed and EI together with my Department will keep the impacts on those companies under review.
147. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation when the Addressing the Skills Needs Arising from the Potential Trade Implications of Brexit report by the expert group on future skills needs will be published in 2018. [21959/18]
Amharc ar fhreagraThe Expert Group on Future Skills Needs report on Addressing the Skills Needs Arising from the Potential Trade Implications of Brexit is expected to be published in June 2018.
148. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the funding allocated to the Expert Group on Future Skills Needs in each of the years 2010 to 2017; the 2018 funding allocation between current and capital funding; the annual costs incurred and allocations made in each of the years 2010 to 2017; the number of part-time and full-time civil servants attached to the expert group; and the associated annual staff costs. [21960/18]
Amharc ar fhreagraThis PQ contains 4 parts as follows:
1. Funding allocated to the EGFSN from 2010 to 2017;2.
2. Current and capital funding allocated for 2018;
3. Annual costs incurred from 2010 to 2017 (allocations part already covered by part 1);
4. The number of civil servants (part & full-time) attached to the Group and their costs;
1. Budget Allocations
2010 - €604,000;
2011 - €520,000;
2012 - €420,000;
2013 - €420,000;
2014 - €490,000;
2015 - €490,000;
2016 - €490,000;
2017 - €380,000.
2. 2018 - €380,000 is allocated. Expenditure is profiled as €240,000 pay and €140,000 non-pay.
3. Actual Expenditure (including pay referenced in Section 4)
2010 - €401,956;
2011 - €316,516;
2012 - €361, 040;
2013 - €390,993 ;
2014 - €446,402;
2015 - €336,111;
2016 - €278,044;
2017 - €342,502
4. Civil Servant Numbers
The numbers of civil servants working in the EGFSN Secretariat in the Department of Business, Enterprise and Innovation has varied over the years. In 2017, approximately €220,000 was spent on pay of civil servants working for the EGFSN. At year end 2017, there was 1 Principal Officer (50% of time on EGFSN)and 3 Assistant Principal Officers working in the Secretariat.
Pay Expenditure
2010 - €294,456
2011 - €237,223;
2012 – €210,000 ;
2013 - €210,000;
2014 – €228,000
2015 - € 242,111;
2016 –€220,578;
2017 - €220,000.
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.
