Thursday, 31 January 2019

Ceisteanna (31, 33, 39, 44)

Fergus O'Dowd


31. Deputy Fergus O'Dowd asked the Minister for Business, Enterprise and Innovation the steps she is taking to help businesses prepare for Brexit, particularly in the Border region; and if she will make a statement on the matter. [4467/19]

Amharc ar fhreagra

Eamon Scanlon


33. Deputy Eamon Scanlon asked the Minister for Business, Enterprise and Innovation the contingencies and supports in place to safeguard SMEs from a hard Brexit or no-deal scenario; and if she will make a statement on the matter. [4436/19]

Amharc ar fhreagra

Peadar Tóibín


39. Deputy Peadar Tóibín asked the Minister for Business, Enterprise and Innovation the supports that will be made available for businesses along the Border which will be vulnerable in the case of a no-deal Brexit. [4681/19]

Amharc ar fhreagra

Jan O'Sullivan


44. Deputy Jan O'Sullivan asked the Minister for Business, Enterprise and Innovation the plans agencies under her aegis have to provide support to companies negatively affected by Brexit particularly in the absence of a deal between the EU and the UK; and if she will make a statement on the matter. [4592/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Business)

I propose to take Questions Nos. 31, 33, 39 and 44 together.

My Department and its agencies are working to provide extensive supports, schemes and advice to ensure that businesses are prepared for Brexit. These measures aim to assist businesses in identifying key risk areas and the practical preparatory actions to be taken over the coming weeks.

I made Brexit one of my top priorities in the allocations of funding for 2019 in my Department and I have allocated further funding to Brexit-related support from agencies and offices of my Department as part of Budget 2019. I have allocated an additional €5 million capital funding to the Local Enterprise Offices, an increase of 22% for 2019, and a further €1 million allocated to InterTrade Ireland to help SMEs prepare for the particular North-South challenges associated with Brexit. I have allocated an additional €3m to Enterprise Ireland and €2m to IDA Ireland to expand their global footprints and drive the diversification of trade and investment. Additional resources have also been distributed across Science Foundation Ireland and the Health and Safety Authority and the NSAI for 2019 to support enterprises adjust to the new relationships with the UK and pursue new opportunities.

Informed by detailed research, my Department has put in place a package of measures in response to the needs of businesses affected by Brexit-related uncertainty.

I allocated an additional €1million to InterTradeIreland (ITI) as part of Budget 2019. ITI works with SMEs on an all-Ireland basis and is particularly well-placed, given its remit to develop cross-border trade, to help SMEs prepare for the particular North-South challenges associated with Brexit.

The ITI Brexit Advisory Service provides a focal point for SMEs working to navigate any changes in cross-border trading relationships arising as a result of Brexit. As part of the service, ITI has organised a series of awareness events focused on improving knowledge of customs processes and procedures and identifying actions that can be taken in areas such as logistics and supply chain management. To date, more than 4,000 SMEs have directly engaged with the Brexit Advisory Service.

ITI also offers a Brexit Start to Plan voucher scheme, which enables businesses to get professional advice on how best to plan and prepare for the UK's withdrawal from the European Union. This support helps businesses obtain advice on specific areas such as tariffs, currency management, regulatory and customs issues and movement of labour, goods and services. ITI vouchers are worth up to €2,250 (inclusive of VAT) each. Companies are finding the vouchers very useful and there has been strong demand which can be attributed to the media campaign conducted by ITI across a range of platforms. As of its most recent report and the end of November 2018, 811 businesses have applied for a Brexit Start to Plan voucher, of which 657 have been approved.

The Local Enterprise Offices (LEOs) are the first-stop-shop for anyone seeking guidance and support on starting or growing their business. The LEOs have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit. In addition, 471 LEO clients have received one-to-one mentoring solely focused on Brexit.

The LEOs engage in a number of other schemes to help companies prepare for Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities, as of 18 January 2018, 419 LEO clients were approved assistance under the grant. Also, additional capital funding of €5 million was announced in Budget 2019 for local enterprise development.

In addition, the six LEOs in the Border region are working together with their Northern Ireland counterparts under the EU Co-Innovate Programme. The aim of Co-Innovate is to give SMEs from the manufacturing and tradable services sectors in the eligible regions the tools and tailored support to help them to innovate, differentiate and compete successfully.

In December 2018, I announced a further €30 million in funding for successful projects under Call 2 of the competitive Regional Enterprise Development Fund (REDF).

In April 2017, I asked all the Regional Action Plan for Jobs Implementation Committees to start a process to refresh and refocus all Regional Plans to ensure their relevance and impact out to 2020. This will ensure that the Plans remain effective and that they continue to deliver jobs across the country, in all regions, and can be robust in addressing the challenges we face, including Brexit. As a result, both the North-West and the North-East will both have their own plans in the new iteration and Brexit will be an ongoing priority area for both Committees. These plans are being finalised and will be published in February.

The €300 million Brexit Loan Scheme provides relatively short term working capital, 1-3 years, to eligible businesses with up to 499 employees to help them innovate, change or adapt to mitigate their Brexit challenges. The scheme is open to eligible businesses from all regions of the country, including those in the Border counties. Businesses can confirm their eligibility with the Strategic Banking Corporation of Ireland (SBCI) and if deemed eligible, can apply to one of the participating finance providers for a loan under the scheme.

The scheme was launched in March 2018 and, as at close of business on 18th January, there have been 376 eligibility applications received of which 337 eligibility applications have been approved and 65 loans progressed to sanction at Bank level to a value of €14.9m.

The Future Growth Loan Scheme was announced in Budget 2019. The scheme will provide a longer-term facility, 8 to 10 years, of up to €300m to support strategic capital investment for a post-Brexit environment by business at competitive rates. This is jointly funded by the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine. Loans of €50,000 to €3m will be available, with loans of under €500,000 being provided on an unsecured basis. 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. The SBCI has issued an “Open Call” for financial institutions to apply by 11 February 2019 for designation as a lending partner under the Scheme. It is expected that this Scheme will be operational in early 2019.

Enterprise Ireland has established a Prepare for Brexit online portal and communications campaign, as well as an online “Brexit SME Scorecard” to help Irish businesses self-asses their exposure to Brexit and a “Be Prepared Grant” to support SME clients in planning to mitigate risks arising from Brexit. It has also launched a new Eurozone Strategy to help SMEs broaden their export footprint beyond the UK.

Over 3,900 business have used Enterprise Ireland’s Brexit Scorecard to date and 85% of EI client firms are now taking actions, while 155 applications for the Be Prepared grant have been approved. 165 EI clients have received funding under its “Act On” programme, which supports the engagement of a consultant to help clients identify weaknesses and improve resilience. EI has also hosted 11 Brexit Advisory Clinics.

EI also recently launched a new Customs Insights Online course which is a new online training support to help all businesses understand how customs work including the documentation and process required to operate and succeed post Brexit. The Customs Insights course explains in clear and simple terms the main customs rules and included the key actions companies can take to prepare for customs after Brexit and the options from Revenue that are available to make the customs process more efficient. This will be available for any company to use whether they are importers or exporters and also whether they are agency clients or not.

In order to help build the enterprise capability, under the Regional Enterprise Development Fund (REDF) EI invested in seven successful projects in the Border region with a total funding allocation of more than €10.6 million. This funding will drive enterprise development and job creation in the Border Region.

Enterprise Ireland will continue to engage with its clients to ensure they have the supports required to prepare for any kind of Brexit.

My Department and I have been very active in the 'Getting Ireland Brexit Ready' public information campaign. This campaign includes workshop events throughout the country aimed primarily at business and people most impacted by Brexit. A ‘Getting Ireland Brexit Ready’ event was recently held in Monaghan in October and I was delighted to welcome many businesses from the Border Region. Officials from my Department and agencies also participated in the Getting Ireland Brexit Ready event in Letterkenny in Donegal on 30 November 2018, which included Enterprise Ireland, IDA, the LEOs, NSAI and the HSA.

While I have seen a very positive uptake of the supports available, not everyone is engaging. With Brexit around the corner, I want businesses, particularly those around the Border counties to know my Department and agencies are here to help. My Department and its agencies are providing extensive supports, schemes and advice to ensure that businesses are prepared for any Brexit scenario.