The Government remains focused on ensuring an orderly UK withdrawal through ratification of the Withdrawal Agreement endorsed by the European Council on 25 November and agreed with the British Government. However, it is only prudent for the Government to prepare for all scenarios and my Department is carrying out extensive work in preparation.
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 a number of schemes which have been developed to mitigate against the effects of Brexit. Following a meeting at the end of 2017 between the then Tánaiste and Commissioner Vestager, the European Commissioner for Competition who has responsibility for EU State aid policy, a technical working group on State aid was established comprising representatives from DG Competition, Enterprise Ireland and the Department of Agriculture, Food and the Marine. The objective of the Group is to scope and design supports for enterprises within existing State aid rules.
In late November 2017 a Rescue and Restructuring (R&R) Scheme was approved by the EU Commission. 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.
The Brexit Loan Scheme was launched in April 2018 and provides affordable working capital financing to eligible businesses that are either currently impacted by Brexit or will be in the future. This is operated within State aid rules under the de Minimis regulation.
In May 2018, the Rescue and Restructuring scheme was extended to include temporary restructuring aid for enterprises experiencing acute liquidity needs. The aid is granted in the form of loans repayable over a period of 18 months. 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.
The Future Growth Loan Scheme was announced in Budget 2019. The scheme will be available to eligible Irish businesses, including those in the primary agriculture and seafood sectors, to support strategic, long-term investment in a post-Brexit environment. It is expected that this scheme will be operational in Q1 2019.
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.
