Dáil Éireann Debate, Thursday - 18 April 2019
155. Deputy Lisa Chambers asked the Minister for Business, Enterprise and Innovation the uptake of all Brexit supports and expenditure to date in tabular form; and if she will make a statement on the matter. [18372/19]
Amharc ar fhreagraWhile the immediate risk of a no-deal exit has diminished, Brexit continues to represent a significant challenge for businesses in Ireland, which cannot be underestimated. That’s why my Department started developing supports for businesses from the time when Brexit first became a possibility. Government’s priority is to ensure that businesses around the country can manage risks and avail of any opportunities. This has informed the range of advisory and financial supports that are in place.
My Department’s total exchequer allocation increased by 9.1% year on year, up from €871m to €950.2m. This is made up of a record €620m in capital and €330.2m in current funding, which includes an increase of €65m in capital – up 11.7% on last year’s allocation of €555m; and, an increase of €14.2m in current – almost 4.5% more than our 2018 allocation of €316m.
I allocated an extra €5m to the 31 Local Enterprise Offices [LEOs], up 22% on 2018, which have a presence in every county, to support start-ups and growth and, in particular, to support businesses to prepare for Brexit. The LEOs will work with the broad range of small and micro indigenous enterprises across sectors to ensure that they are informed and have plans in place to manage the new trading relationships on the island and with the UK more generally. This includes a new customs training programme for all businesses, exporters and importers, rolled out in conjunction with Enterprise Ireland.
I was also pleased to announce an additional capital allocation of €2.75m to Enterprise Ireland to start developing regional innovation and technology clusters with Institutes of Technology right across the country, positioning them as drivers of world-class start-ups and growth enterprises and helping businesses adjust to market changes, including Brexit.
Through Enterprise Ireland, I also doubled funding for the Online Retail Pilot Scheme to €1.25m in 2019, which will support SMEs in the retail sector to have a stronger online presence and find new markets. This new Scheme follows through on my commitment to increase the scale and internationalisation of indigenous enterprise; increase productivity in high-employment sectors; and encourage Brexit readiness. I announced the first 11 successful applicants on Friday 01 March last and there will be a further call for proposals this year. In addition, Enterprise Ireland invested €74 million in Brexit impacted businesses in 2018.
Funding to InterTradeIreland has been increased by 18% and they, along with the LEOs, are offering a range of Brexit-focused supports to companies, including those engaged in cross-border trade with Northern Ireland.
The Brexit Loan Scheme, using a combination of Irish Exchequer and EU guarantees, leveraged up to €300 million of lending at a maximum interest rate 4% at a cost to the Exchequer of €23 million - €14 million provided by my Department and €9 million provided by Department of Agriculture, Food and the Marine.
The Future Growth Loan Scheme was announced in Budget 2019. The scheme opened for eligibility applications on Wednesday 17 April and it 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 scheme is jointly funded by the Department of Business, Enterprise and Innovation (€37.2 million) and the Department of Agriculture, Food and the Marine (€24.8 million) at a total cost to the Exchequer of €62 million.
The first table attached sets out the respective exchequer increases in allocations to ITI, EI, IDA and the LEOs between 2018 and 2019 and the cost/expenditure of the supports available. Whilst these increases are not all due to Brexit, they are mainly provided to assist the enterprise agencies in their responses to the challenges posed by Brexit.
The second table attached sets out the uptake of the different Brexit-related supports available through the Department and its agencies as at 08 April 2019.
Finally, while we have had great success through the Action Plan for Jobs in reducing unemployment from 16% to 5.6% today, in the context of Brexit and other global challenges, it is important that we move our focus beyond numbers of jobs created to quality and sustainable jobs.
Future Jobs Ireland is our plan to meet all these challenges. Launched on 10 March 2019, it includes ambitious targets and actions to drive this transformation of our economy. These includes funds, policies and initiatives that; enhance productivity, especially among SMEs; promote indigenous entrepreneurship, especially in the regions; encourage clustering and stronger links between domestic and foreign owned firms; and assist businesses to move up the value chain, to protect jobs and to build resilience for the future.
|
Scheme |
Uptake (8 April 2019) |
|
Brexit Loan Scheme |
567 applications received, 511 approved by SBCI, 105 Loans progressed to sanction at bank level to a value of €23.691 million. (Uptake as of 8 April 2019) |
|
Enterprise Ireland Brexit Scorecard - online platform for Irish companies to self-assess their exposure to Brexit |
5,113 Brexit Scorecards have been completed. 992 LEO clients have completed the scorecard. |
|
Enterprise Ireland Be Prepared Grant |
182 Be Prepared Grants have been approved |
|
Enterprise Ireland Market Discovery Fund - A support to EI clients to research new markets |
140 projects have been approved under this initiative[1] |
|
Enterprise Ireland Prepare to Export Scorecard |
2,988 Prepare to Export Scorecards have been completed |
|
Enterprise Ireland Customs Insights Online Course |
1,178 Customs Insights Course participants |
|
Enterprise Ireland Agile Innovation Fund - Gives rapid fast-track access to innovation funding |
47 Agile Innovation projects have been approved |
|
Enterprise Ireland Brexit Advisory Clinics |
16 Brexit Advisory Clinics have been run with over 1,200 in attendance |
|
Enterprise Ireland Brexit “Act On Programme” – A support funding the engagement of a consultant to devise report with recommendations to help clients address weaknesses and improve resilience |
210 “Act on” Plans have been completed |
|
Enterprise Ireland Strategic Consultancy Grant – A grant to assist EI clients to hire a strategic consultant for a set period |
1,062 Strategic Consultancy Grants have been approved |
|
Local Enterprise Office Technical Assistance Grant for Micro Export - an incentive for LEO clients to explore and develop new market opportunities |
518 clients were approved assistance under the Technical Assistance Grant (end March 2019) |
|
Local Enterprise Office LEAN for Micro - The LEO Lean4Micro offer was developed in collaboration between the EI Lean department and the LEOs to tailor the EI Lean offer for LEO micro enterprise clients |
247 LEO clients have participated in the programme (end March 2019) |
|
Local Enterprise Office Mentoring |
562 mentoring participants solely focused on Brexit (end March 2019) |
|
Local Enterprise Office Brexit Seminars/Events |
4,213 Participants at the Brexit Information events (end March 2019) |
|
InterTradeIreland Brexit Advisory Service |
2,419 SMEs have directly engaged with the Brexit Advisory Service in 2019.This is in addition to the 4,175 engagements in 2018. |
|
InterTradeIreland Brexit Start to Plan Vouchers |
There have been 1,401 applications, with 1,214 approved and 31 still pending assessment. |
|
Pilot Online Retail Scheme administered by Enterprise Ireland |
11 retailers were awarded funding in February 2019. There will also be a second call in 2019 |
The Market Discovery Fund figure listed at 140 is lower than that of the end of February document figure of 251. The 133 figure refers to the number of businesses approved, while the earlier number of 251 referred to the number of projects approved. This is now how it is reported to the Board, where projects was used previously.
IDA total allocation (current and capital) for 2019 increased by €33.7 million when compared with 2018.
Enterprise Ireland total allocation (current and capital) for 2019 increased by €6.8 million when compared with 2018.
LEOs total allocation (current and capital) for 2019 increased by €5 million when compared with 2018.
ITI total allocation (current and capital) for 2019 increased by €1 million when compared with 2018.
|
Scheme |
Expenditure/Cost |
|
Brexit Loan Scheme |
The scheme will cost the Exchequer €23 million (€14 million provide by Department of Business, Enterprise and Innovation and €9 million provided by Department of Agriculture, Food and the Marine). |
|
Enterprise Ireland Be Prepared Grant |
€258,024 to beginning of March |
|
Enterprise Ireland Market Discovery Fund - A support to EI clients to research new markets |
€362,919 to beginning of March |
|
Enterprise Ireland Agile Innovation Fund - Gives rapid fast-track access to innovation funding |
€569,033 to beginning of March |
|
Enterprise Ireland Brexit Advisory Clinics |
€237,801 to beginning of March |
|
Enterprise Ireland Brexit “Act On Programme” – A support funding the engagement of a consultant to devise report with recommendations to help clients address weaknesses and improve resilience |
€380,000 to end of January |
|
Enterprise Ireland Strategic Consultancy Grant – A grant to assist EI clients to hire a strategic consultant for a set period |
€1,324,730 to beginning of March |
|
Local Enterprise Office LEAN for Micro – The LEO Lean4Micro offer was developed in collaboration between the EI Lean department and the LEOs to tailor the EI lean offer for LEO micro enterprise clients. |
2017 Expenditure €188,829 1 Jan to 30 Sept 2018 Expenditure €365,744 |
|
Local Enterprise Office LEAN for Micro - The LEO Lean4Micro offer was developed in collaboration between the EI Lean department and the LEOs to tailor the EI Lean offer for LEO micro enterprise clients |
2017 Expenditure €529,922 1 Jan to 30 Sept 2018 Expenditure €518,411 |
|
Local Enterprise Office Mentoring |
There isn’t a specific budget allocation for LEO Brexit mentoring. It is included in the LEOs overall Measure 2 allocation. |
|
Local Enterprise Office Brexit Seminars/Events |
2017 Expenditure €85,509 1 Jan to 30 Sept 2018 Expenditure €57,855 |
|
InterTradeIreland Brexit Start to Plan Vouchers |
ITI offers 100% financial support up to £2000/€2250 (inclusive of VAT) towards professional advice in relation to Brexit matters. |
|
Pilot Online Retail Scheme administered by Enterprise Ireland |
Eleven retailers were awarded funding in March 2019 as part of the new €1.25m fund, with €625,000 available under the first competitive call to support retail businesses to strengthen their online offering. |
