Thursday, 3 October 2019

Ceisteanna (117)

Michael McGrath


117. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation the number of applicants and participants in all Brexit support schemes provided by her Department and agencies under her remit; and the amount allocated and expended on each scheme annually since they were established in tabular form. [40342/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Business)

While the nature of the UK's departure from the EU still remains to be determined, Brexit continues to represent a significant challenge for businesses in Ireland, one which cannot be underestimated. That is why my Department and its agencies have put in place extensive supports, schemes and advisory resources to ensure that to ensure that businesses around the country are prepared for Brexit. These measures aim to assist businesses in identifying and managing key risk areas and develop practical preparatory actions regardless of the circumstances of the UK’s withdrawal from the EU.

My Department’s total exchequer allocation increased by 9.1% year on year, up from €871m in 2018 to €950.2m for this year. 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 funding – almost 4.5% more than our 2018 allocation of €316m.

I allocated an additional €5m to the network of Local Enterprise Offices, €3m to Enterprise Ireland, €2m to IDA Ireland and €1m to InterTradeIreland to help businesses prepare for Brexit, together with funding for the longer-term Future Growth Loan Scheme and the IDA Regional Property Programme. I also provided extra staff for the regulatory bodies of my Department to ensure they are properly resourced to address the additional demands that Brexit will create.

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, 1,017 LEO clients have received one-to-one mentoring solely focused on Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. 729 LEO clients have been approved for the Technical Assistance Grant.

The Local Enterprise Office interactive one day Prepare Your Business for Customs workshop helps businesses understand the key customs concepts, documentation and processes required to succeed in a post Brexit environment. 917 Participants have so far attended this Customs Training.

InterTrade Ireland also plays a major role as part of Ireland’s Brexit response and offers Brexit-related advisory services to eligible businesses. So far this year, more than 4,500 SMEs have directly engaged with the Brexit Advisory Service. 

ITI offers a Brexit Planning Voucher and Brexit Implementation Voucher schemes, which enables businesses to get professional advice on how best to plan, prepare and implement for the UK's withdrawal from the European Union. These supports help businesses obtain advice on specific areas such as tariffs, currency management, regulatory and customs issues and movement of labour, goods and services.

ITI Brexit Start to Plan vouchers are worth up to €2,250 (inclusive of VAT) each. Over 1,800 businesses have applied for a Brexit Start to Plan voucher, of which over 1,600 have been approved. ITI new Brexit Implementation Voucher provides financial support up to £5,000/€5,625 (inclusive of VAT), with InterTradeIreland paying 50%. This will allow businesses to implement critical changes making them better prepared to deal with a new trading relationship.

In August, ITI launched a new advertising campaign and a new online resource to encourage and assist firms in preparing for Brexit. The online “Bitesize Brexit” resource is a one-stop-shop for cross-border traders, presenting information in easily digestible segments and includes specific actions businesses should take in preparing for Brexit.

The Brexit Loan Scheme was launched in March of 2018. The 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 Brexit Loan Scheme provides relatively short-term working capital, 1 to 3 years, to eligible businesses with up to 499 employees to help them to innovate, change or adapt to mitigate their Brexit challenges. 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. 

As at 27 September, there have been 816 applications for eligibility under the scheme, of which 738 have been approved to date by SBCI. 194 of those applications have progressed to sanction at bank value, to a total value of €43.52 million.

The Future Growth Loan Scheme launched in March of this year. The scheme provides 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. 

This scheme is available to eligible businesses in Ireland and the primary agriculture (farmers) and seafood sectors to support strategic long-term investment. The Strategic Banking Corporation of Ireland, the scheme operator, opened for eligibility applications on 17 April and up to 27 September it had received 1,353 eligibility applications and issued 1,283 eligibility letters.

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 6,500 business have used Enterprise Ireland’s Brexit Scorecard to date and 85% of EI client firms have a plan in place, while 216 applications for the Be Prepared grant have been approved. 288 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 16 Brexit Advisory Clinics.

EI also launched a Customs Insights Online course at the beginning of the year. This 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. There have been over 1,700 Customs Insights Course participants.

Enterprise Ireland also recently published 12 ‘Brexit Essential’ questions aimed at helping exporting businesses further prepare and take action ahead of the UK’s impending withdrawal from the EU.  The Brexit Essentials campaign highlights the key questions and documentation that businesses need to address in order to trade successfully with the UK post 31 October.

My Department, together with the Department of Education and Skills,  in association with key industry partners, also launched a new support measure to help customs agents, intermediaries and affected Irish businesses develop the capacity to deal with the additional customs requirements due to the UK’s departure from the EU. The new initiative is called Clear Customs, and it comprises of a free customs training programme provided through Skillnet and a financial support payment from Enterprise Ireland to assist with the costs of recruiting and assigning staff to customs roles in addition to necessary customs IT requirements. To the 27 of September, 168 applications have been made to access financial support through the scheme.

While I have seen a very positive uptake of the supports available, I am conscious that the delays to Brexit may have led businesses to defer their immediate planning. However, the UK’s exit from the EU will mean changes for Irish businesses. I want businesses to know that my Department and its agencies are here to help.  The existing supports, schemes and advice are in place to ensure that businesses are prepared for any Brexit scenario.

The first table attached sets out the uptake of the different Brexit-related supports available through the Department and its agencies as at 27 September 2019.

The second 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.

Brexit Schemes and Expenditure