Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter. Extensive work has been ongoing in my Department to prepare for all Brexit eventualities. This includes both research and the development of specific supports. Officials of my Department have had discussions with senior officials from DG Competition on the potential and the real difficulties encountered by Irish businesses as a result of the UK's decision to leave the EU. In November 2017, the then Tánaiste met with Commissioner Vestager and the issue of state aid was discussed. An outcome from this meeting was the establishment of a working group comprising representatives from DG Competition, the Department of Business, Enterprise and Innovation, Enterprise Ireland and the Department of Agriculture, Food and the Marine. The objective of the group is to scope and design schemes to support enterprises impacted by Brexit in line with current applicable state aid rules. Should issues arise that require an approach that does not fit within the existing state aid rules, that will be raised as part of the working group discussions. The work of the group has already commenced and it is due to have its third meeting in February 2018. In between these meetings, there has been engagement on specific issues to continue to progress matters.

A rescue and restructuring, R&R, scheme was approved by the Commission in late November 2017. This scheme has been put in place as it was considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances if necessary.

A Brexit loan scheme was announced in budget 2018. This will provide affordable working capital financing to eligible businesses that are either currently impacted by Brexit, or will be in the future. The recent signing of the counter guarantee means the €23 million Exchequer funding, comprising €14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine, can be leveraged to provide a €300 million fund from the European Commission and the European Investment Band, EIB, Group through its InnovFin loan guarantee scheme. The scheme will be open to businesses of fewer than 500 employees, which can demonstrate that they are significantly exposed to the impact, or potential impact, of Brexit. They must be a viable business, doing business in Ireland, and they must have a business development strategy demonstrating that they plan to innovate or adapt in response to Brexit.

The agencies of my Department are also fully engaged in preparing for Brexit. Enterprise Ireland's, EI, #PrepareforBrexit communications campaign, featuring the Brexit SME scorecard, was launched last March. The scorecard is an interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit. EI has introduced a Be Prepared Grant which offers up to €5,000 for exporting client companies to conduct further research and use external expertise to develop a Brexit action plan. The funding to local enterprise offices has been increased by 22% and they, with InterTrade Ireland are offering a range of Brexit focused supports to companies, including those engaged in cross-Border trade with Northern Ireland.

This work, along with market developments as a result of Brexit, and ongoing engagement with the business community, will inform further discussions with the Commission. I will be maintaining a strong focus on the SME sector and will consider the development of further initiatives to support business as required.

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