Mr. Kevin Sherry:

I will respond to Senator Mulherin's question on start-ups and how we compare in that area. Enterprise Ireland has focused on supporting internationally focused start-ups. Last year, in terms of spin-outs in third level institutions, we had the highest level of new start-ups so we are very pleased about that. In that area, we focus on specific sources of start-ups and work with them to try to increase the number in that area and also the number that achieve scale. A good example of that is in the female entrepreneurship area. If one goes back five years, about 7% of the high potential start-ups we supported were led by female entrepreneurs. Last year, it was closer to 28%. Internationally the figure in the ICT area is typically around 8%. We have much more to do but we have seen that when we take specific initiatives and specifically focus on an area, we get a result.

We are also seeing an increase in the number of start-ups led by entrepreneurs coming from outside of Ireland into Ireland to start their business. We have a specific focus on encouraging entrepreneurs from regions outside Ireland to look at Ireland as a location. When entrepreneurs are starting a business, increasingly they can make decisions on locations. Even if they are from Ireland, there is a decision on whether they will start the business in Ireland or look at other international locations. There is a constant challenge to these companies staying Irish and scaling their business. The availability of development capital is a key factor in that regard. If there is strong availability of development capital and venture capital in Ireland, there is a better chance that those companies will stay and grow a scale as indigenous Irish companies. We are particularly focused on ensuring its availability and encouraging international VCs to partner with funds that Enterprise Ireland is involved in supporting in Ireland.

I will address the implications of Brexit for the food sector. Senator Reilly raised the question of the Border region and mentioned Lakeland Dairies. There is no doubt the food sector is an area that potentially will be particularly impacted by Brexit and the outcome of the discussion on tariffs and cross-Border trade. If we look at the 600 most vulnerable companies, the Border region accounts for a little under 100 of those companies, which between them employ a little over 10,500 people. The food sector is an important sector within that. I mentioned China earlier and companies in the dairy industry are looking to produce high value products such as baby and infant formula and being able to look at other markets. If one takes a company like Lakeland Dairies, in terms of logistics the number of cross-Border shipments even on a weekly basis is substantial. We are very concerned about tariffs or associated additional costs involved in the logistics and trade associated with it. When I talk about working sector by sector, it is something we have been discussing with our parent Departments and with Bord Bia which has also worked with us on the food sector.

I will address the question Senator Daly asked about Northern Ireland. We regard it as on-island trade. Our focus with companies at the moment is to assist them to prepare for international markets. As it stands, our approach is to prepare for a hard Brexit. On-island cross-Border trade would face significant additional challenges to what it is currently facing. In terms of support for those types of companies, we are working intensively with companies involved in cross-Border trade but which are not exporting much beyond those shores. We have an agenda with many of those companies to encourage them to look at additional markets. It is part of our issue.

On the sterling issue, Senator Reilly mentioned mushrooms. It is a particular area that was first impacted. I will ask my colleague, Mr. Murray, to comment on it.