Dáil debates

Wednesday, 7 October 2020

Brexit and Business: Statements

 

7:40 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I thank the Deputies for their constructive contributions on the topics of business and Brexit. Deputy Fitzmaurice is dead right that the banks must step up to the mark, particularly when the Government is underpinning lending by up to 80%. I have engaged with people in my constituency in this regard. It is regrettable that the banks are not stepping up to the mark.

Deputies raised the issue of additional supports for businesses in the contexts of Covid and Brexit. We have had our July stimulus. That was one of the biggest cash injections in the history of the State. It was the first part of a three-part approach to supporting our businesses and economy. The budget is next week and I believe there will be extensive supports for businesses, followed by the national economic plan later this year.

There are a number of questions to be answered arising from the UK's decision to leave the EU Single Market and customs union on 1 January 2021. I acknowledge the efforts of Mr. Michel Barnier's negotiation team to bring about a satisfactory conclusion to the negotiations. I disagree with Deputy Mattie McGrath that the time for talking is over. The time for talking is very much now because we want to reach an agreement to avoid a hard Brexit. The only way we can do so is through negotiations and talks. While we do not know the ultimate outcome, we know substantial and lasting change is coming on 1 January 2021. We also know we need to prepare businesses for that change.

On 1 January, businesses will be affected most immediately by the terms of the new customs procedures, which will affect what has up to now been the seamless movement of goods through ports and airports and via the UK land bridge. Most businesses, unless exporting to third country markets, will be completely unfamiliar with the procedures, checks and controls concerning customs and with other regulatory checks. These changes mean businesses must get Brexit ready within a short period. It is important to emphasise that the changes will occur regardless of the outcome of EU-UK negotiations and regardless of whether there is a trade deal. That is why I urge businesses to prepare for the change and take action now. They need to get ready, get informed and get support.

This morning I took part in the Department's enterprise forum on Brexit and global challenges with the Tánaiste and the Minister of State, Deputy English. Having listened to stakeholders, I note there is still concern about the level of preparedness among businesses. I commenced a regional roadshow with Enterprise Ireland and, in kicking off the tour, I prioritised the north-east region given its exposure to Brexit. From discussions, I realise companies engaging with State agencies are confident but a priority concern for me is that many small business communities are not engaging with State agencies and not engaging in Brexit preparedness activity because of competing demands on their time as they continue to deal with the impact of Covid and many other challenges. We must ensure no one is left behind and everyone is engaging with the process.

The Government and State agencies are here to help and provide support for businesses navigating the changes. The Tánaiste, in his statement, outlined a full range of State supports to help to get businesses Brexit ready. With just 11 weeks to go until the end of the transition period, I ask all Deputies to ensure they bring these supports to the attention of local businesses that can make best use of them.

Using the UK land bridge also remains a key issue. I visited Dublin Port last week and saw for myself the amount of work under way to get it prepared. In fairness to it, it has been preparing for more than two years, but it is important to remember that if businesses wish to continue using the land bridge, customs formalities will be necessary.

Direct sea link options provide a viable alternative, and businesses should be considering these to avoid future risk and backlogs. My understanding is that there are approximately 20 direct sailings from Dublin Port to mainland Europe weekly and in the region of six direct sailings from Rosslare Europort weekly, depending on the time of the year. From listening to some Deputies tonight, one would swear there were no direct sailings from Ireland to mainland Europe.

I want to emphasise the issue of customs training and familiarisation, in addition to the training and support initiatives available to get businesses up to speed on new customs procedures. This will probably be the area of greatest impact on businesses, and it is the one with which they will be least familiar. In a recent Enterprise Ireland survey of over 600 companies, customs proved to be the matter of greatest concern. From 1 January next, businesses wishing to continue trading with the United Kingdom will need, at a minimum, to have an EORI number and to complete the relevant customs declarations. Businesses will also need to decide whether to complete these declarations in-house or use a customs agent. To help to build businesses' in-house capacity in the area of customer familiarisation, one of the measures associated with the July stimulus included a ready-for-customs grant, available through Enterprise Ireland. Under this grant, businesses can claim up to €9,000 per eligible employee hired or redeployed to a dedicated customs role within a business.

Once again, I urge businesses to look into what supports are available. Skillnet Ireland's FREE Clear Customs training and Clear Customs Online 2020 are accepting applications for their online training courses, which are free and available 24-7. The local enterprise offices are also holding a one-day Prepare Your Business for Customs workshop throughout the country, while Enterprise Ireland also has a customs insight online course available. I am concerned with the low take-up of some of these supports and I have raised these concerns with employer representative groups. We must continue to raise awareness of the supports to enable businesses to avail of them, particularly small businesses who are unaware of them.

Beyond customs supports there are numerous initiatives available from Government to help businesses get Brexit-ready, ranging from vouchers and financial supports to consultancy, mentoring and advice. These are offered through agencies, including Enterprise Ireland, the local enterprise offices and InterTradeIreland. Those starting their Brexit preparations should consider Enterprise Ireland's Brexit-readiness checker or the Brexit planning voucher to seek professional advice on how best to plan and get ready for Brexit. There are many other supports under consideration. For more substantial financial supports, business should consider the Brexit loan scheme and the future growth loan scheme, which offer short to long-term loan facilities. Microfinance Ireland is also an option for micro-enterprises. We know that Brexit will bring many changes. Addressing these changes may seem daunting and overwhelming in equal measure but Government is here to help and steer business in the right direction.

While we are aware of all of the challenges of Brexit, we must also use this time to look at the opportunities to diversify our market reach through its existing free trade arrangements and work with the new Commissioner for Trade on building a new roadmap for EU trade. There is huge benefit in being an EU member. We need to leverage all of the advantage that we have. Trade in this country has taken a battering over the last number of months. It is essential for the country as we move forward. As Minister of State with responsibility for trade promotion I reiterate the need to look to 2021 as the year we can expand our global footprint, encourage businesses that are trading currently to expand and scale-up and to encourage new businesses to trade internationally.

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