Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on the topic as I want enterprise to respond with confidence to the sort of challenges thrown up by the United Kingdom's referendum on European Union membership. Work has been ongoing in my Department and its agencies in preparation for the Leave outcome. I will give Deputies an insight into the actions I will take.

While the market has been in some turmoil in terms of movement in currencies and share values, it is important that we are able to separate short-run impacts from longer term issues and avoid anything that amplifies current uncertainty. Things are uncertain and may remain so for some years. As such, we must accept the current position as the new normal. As part of my contingency plans, immediately after the Cabinet meeting on Friday morning last, I convened a meeting of the chief executive officers of IDA Ireland and Enterprise Ireland and officials to oversee the management of our response and the messaging to business both overseas and domestically. I asked the agencies to communicate directly with their clients. In addition to writing to their clients, there have been multiple contacts between senior business clients and Enterprise Ireland and IDA Ireland today. Enterprise Ireland also set up a call line to provide assistance to clients. We must convey our genuine confidence in our ability to continue to compete for and win international investment.

Similarly, we have every reason to believe we can continue to increase exports and market share. I will continue to meet the enterprise agencies to lead the co-ordination of our response to challenges as they emerge. It is clear that currency movements present a significant challenge for exporters. Obviously, this is not a new challenge. We have lived with currency volatility over the years and many companies have hedging strategies to cope with currency changes. Many also have sourcing strategies to source imports from euro areas. What is not clear is the ultimate extent or duration of the currency swings. However, my Department has been working to develop a pilot scheme to improve access to working capital for exporters with the Strategic Banking Corporation of Ireland, Enterprise Ireland and the Department of Finance. I hope this scheme will be deployed as soon as possible. I have asked the agencies to keep the issue of currency volatility under review and I remain open to consider any effective proposals they may make.

While we are aware that we have a serious market exposure to the United Kingdom, as a result of our determined effort to assist companies to diversify into new markets, Enterprise Ireland clients have reduced the proportion of exported goods and services going to the UK from 45% to 37% in 2015. I have asked Enterprise Ireland to accelerate the finalisation of its plans for increasing the number of trade missions in the European Union to include Germany, France and Scandinavia and to intensify our programme of missions in non-EU markets. I am also initiating a review of the overseas footprint of Enterprise Ireland and IDA Ireland to ensure we are fully prepared to support business in finding new markets and investment. In tandem with this, I will lead a trade mission to the UK with aviation companies in early July. As Britain will remain a key market for us, we must retain our focus on its potential, even as we seek to diversify to other markets.

In tandem, I am leading a trade mission to the UK with aviation companies in early July, because the UK will remain a key market for us and we need to retain our focus on its potential, even as we seek to diversify to other markets.

Clearly, IDA Ireland has engaged in extensive planning for today's situation. It can provide assurance to overseas clients of our continued commitment to EU membership, the soundness of the economy and the consistency of our fiscal strategy, including our position on corporation tax.

Importantly, we are signalling that we remain open for business. I do not believe we will suddenly see a rash of investment decisions. Instead, major investors will reflect before they react. However, we are so well positioned in terms of attracting inward investment that we can only expect to benefit in the context of the UK's exit from the EU.

We do not know what new relationship the UK will seek with the Union and we cannot know how long that will take to be put in place.

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