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

I appreciate the opportunity to say a few words about my Department's budget allocation for next year.

In 2020 our total allocation will be €971 million. In a no-deal Brexit, however, we will initially have immediate access to an additional support package of €110 million. This will be drawn from the total contingency fund of €650 million, which has been earmarked by the Minister for Finance, Deputy Donohoe, to mitigate the effects of a no-deal Brexit across a number of Departments. It is a first wave of funding to support the businesses most impacted and I will now outline exactly where we will direct the money. It is important to say that Ireland has never been better placed to deal with a big economic shock like Brexit. It is an unprecedented challenge but we are nothing if not a resilient people. We have navigated our way out of challenging times before and we will do so again. Consider how far we have come since the recent economic crisis. Nearly 220,000 total jobs have been created since the start of 2016 and the unemployment rate currently stands at 5.2%, which is the lowest rate since 2007.

We are planning and investing for the future through Future Jobs Ireland, the nine regional enterprise plans, the regional enterprise development fund and Project Ireland 2040. We must not lose sight of that. We must continue to plan ahead, focus on what is within our control domestically and be the masters of our own destiny. That is exactly what we are doing in budget 2020.

Given the ongoing political uncertainty in the UK, the chances of a no-deal Brexit are high. This is why on day one of a no-deal Brexit, €110 million will be made available to my Department to support vulnerable but viable firms. The funding will be used to activate four specific schemes and three other measures, which build on the many supports already introduced by the Government over the last three years. As I said earlier, this is an initial tranche of funding and there is flexibility there.

The Government is committed to providing further waves of funding as required and I will discuss this with the Minister, Deputy Donohoe as we go along. An initial provision of €42 million will be made available under the rescue and restructuring fund. This fund is for the worst-case scenario. It will rescue firms with acute liquidity or insolvency problems and support them to put a restructuring plan in place to adjust to their new reality. The funding support can be provided in the form of equity or loans of potentially up to €10 million under state aid rules, depending on the circumstances of the business.

In a no-deal Brexit, we will also introduce a new transition fund backed by an initial €45 million. The fund is targeted at small or medium-sized businesses with ten or more employees. It would support firms in the manufacturing sectors and in internationally traded services. It will help them to adapt to short-term shocks such as disruption to supply chain or the loss of market or to adjust their business model as needed. Funding of up to €1 million will be provided through a mix of grants, repayable loans and equity support.

Another fund of €8 million will be made available for a transformation fund for food and non-food businesses. This is a grant scheme supporting larger firms to invest in innovative products and processes to transform their businesses. My Department will provide €5 million to support food businesses and an initial €3 million to support non-food businesses. This is a joint initiative between my Department and the Department of Agriculture, Food and the Marine. I am also providing Microfinance Ireland with an additional €5 million to support microenterprises. I would be used to increase the maximum amount that Microfinance Ireland can lend to firms from €25,000 to €50,000. The loans will be available over a two to five-year period.

The fourth scheme is a €5 million microenterprise emergency Brexit fund, which will be linked to the additional support from Microfinance Ireland and this fund will be operated by the local enterprise offices. It will take the form of repayable grants worth €50,000. Businesses will work with Microfinance Ireland in the first instance and, as required and depending on circumstances, can avail of additional support from the local enterprise office.

Undoubtedly the Border region will feel the greatest impact of a no-deal Brexit and this is why an additional €2 million will be provided to InterTradeIreland in a no-deal Brexit to further support its vital work. As a North-South body, any funding from the South should be matched by the North. Nevertheless, in the absence of the Northern Ireland Executive I am determined to give them every possible support to help firms on both sides of the Border. Furthermore, an extra €3 million will be provided to my Department's regulatory bodies in a no-deal Brexit to meet additional demands in areas like market surveillance, accreditation and conformity. Those bodies include the National Standards Authority of Ireland, the Irish National Accreditation Board, the Competition and Consumer Protection Commission and the Health and Safety Authority.

Separate to the no-deal Brexit package, I am delighted to announce the provision of €12 million for innovation. This includes €10 million in additional funding for the next phase of the disruptive technologies innovation fund. This fund is a key driver of Future Jobs Ireland, our whole-of-government plan to prepare our businesses and workers for the future. I have also secured a further €2 million in capital funding for our innovation programme through Science Foundation Ireland, SFI. This will be used to expand the research programme being undertaken by SFI research centres.

With or without Brexit, these measures will enhance Ireland's competitiveness and attractiveness as a place in which to live, work and invest. In tandem with this I am working with the Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, to establish a short-term work scheme with training to preserve jobs in vulnerable sectors. I have met ICTU, IBEC and the Minister, Deputy Regina Doherty, on this measure and we will make a further announcement shortly.

In closing, I reiterate that this €110 million emergency Brexit package in my budget for 2020 will be immediately available in a no-deal Brexit. The schemes will be activated on day one. They will support vulnerable but viable firms and build on the many supports already in place. They have been designed with the feedback of businesses in mind and will ensure that Irish enterprise is able to respond to the challenges that a no-deal Brexit presents. This is the first tranche of funding and if I need additional funds to support firms in the wake of no deal, I will access more of the €650 million contingency fund announced by the Minister, Deputy Donohoe, today.

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