Dáil debates

Thursday, 23 March 2017

Ceisteanna - Questions - Priority Questions

Brexit Issues

1:00 pm

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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3. To ask the Minister for Jobs, Enterprise and Innovation the contingencies and supports in place to safeguard Irish jobs and exports from a hard Brexit scenario; the number of EU Competitiveness Council ministerial meetings that she made the case for the need of a revision of state aid rules to protect Irish enterprises and related jobs; and if she will make a statement on the matter. [14747/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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In advance of the Brexit referendum, my Department conducted a contingency risk assessment of the potential impacts of Brexit across relevant policy areas. We have refined our analysis since then and have been working with our agencies and across Government to put in place additional resources and actions so as to mitigate risks and maximise opportunities. I have also initiated new structures, consultation fora and research to inform our decision making. Budget 2017 and the Action Plan for Jobs 2017 include important initiatives to enhance the capacity of our enterprise agencies to assist companies in the context of Brexit.

Since the Brexit referendum, I have attended three meetings of the Competitiveness Council. The issue of revisions of state aid rules on foot of Brexit has not arisen at Council meetings, in which the UK continues to participate. However, in all of my engagements with European Commissioners and Ministers from other member states since the UK decision, Brexit has been a central part of the discussions. At each meeting, I have stressed the potential impact of Brexit on the most exposed sectors of the Irish economy.

My departmental officials have also had discussions with senior officials from the Directorate General for Competition and other relevant DGs to sensitise them to the potential difficulties for Irish businesses arising from the Brexit referendum result. These discussions are ongoing, will continue to address all relevant issues and challenges and will explore all possible options.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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I thank the Minister. I wish to raise two points on this matter. We are nearing the invocation of Article 50, as the Minister is well aware, but something that she confirmed to me via parliamentary question will come as a surprise to many. Her Department has a Brexit unit, headed up by a principal officer, with only three staff. For such a large Department that plays a major role in promoting job creation and enterprise to have a Brexit unit that is so small is very concerning and disturbing.

On this side of the House we have consistently called for an enterprise stabilisation fund and an employment support scheme similar to what was established in 2008 when the crisis hit this country. Does the Minister have any intention of introducing such measures to help businesses to buffer themselves against the oncoming shock of the impact of Brexit? In my part of the country in Nenagh, for example, jobs were lost when a company closed, citing Brexit as the reason to relocate to the UK.

1:10 pm

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Deputy Collins referred to the Brexit unit. I will describe to him exactly what is going on in the Department. In addition to the Brexit unit I chair a fortnightly meeting which is attended by the chief executives of the IDA, Enterprise Ireland, Science Foundation Ireland, InterTradeIreland and whichever other groups we need to make sure we are cognisant of what is happening in the various sectors.

The Secretary General of the Department chairs another meeting with stakeholders such as the Small Firms Association and the various trade organisations, including Retail Excellence and IBEC, which is led by Danny McCoy, and various other groups to ensure that we know exactly what is happening.

The Department is conducting pilot projects across three sectoral areas and will then address a further 11 sectoral areas that will be affected by Brexit. I assure the Deputy that much work is going on. We have the very best people involved. The Secretary General attends a meeting every fortnight and I, as Minister, and others are also present at those meetings making sure that Enterprise Ireland, the IDA, InterTradeIreland all respond adequately to the Brexit challenge as well as the opportunities it presents.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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All that is against a backdrop of a dedicated Department in the UK to deal with Brexit while we have a three-person unit within the Department.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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It is not just a three-person unit.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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That speaks volumes. State aid rules are also relevant to this question. I am concerned that the 2017 Action Plan for Jobs, a 105 page document which the Minister published recently, made no mention whatsoever of a requirement for a review of the state aid rules. On this side of the House we consider a review of the EU state aid rules is required. The current cap on state aid at €200,000 over a three-year period must be addressed in a comprehensive manner by the Government and the European Union. The rules must be changed in order to allow the State to help businesses to survive and withstand the impact of Brexit.

The Minister confirmed by way of reply to a parliamentary question that she attended two meetings of the National Competitiveness Council and that on no occasion were state aid rules or their revision discussed. That is most regrettable and of concern. Has the Minister made any attempt to build support or consensus from other member states to request the Directorate-General for Competition, DG COMP, within the Commission to review state aid rules, as that will be required in order to help Irish businesses to withstand Brexit?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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It is very easy for Deputy Collins to talk about what businesses need, but we have carried out a tailored and targeted survey with more than 1,000 businesses, to which we had a 99% response. They had different requirements. Some of them want to be more competitive, others want help with currency fluctuation and still others want access to cheaper credit so it is not all about state aid rules.

I also wish to nail the assertion that we are not prepared. I outlined to the Deputy what is happening in the Department but we also report to the Brexit committee set up by the Taoiseach. Deputy Collins said there is a special Brexit unit in the UK. We have a special Brexit unit also that is chaired by the Taoiseach. A Secretary General is dedicated to Brexit and all 14 Departments are working together. Deputy Collins suggested a dedicated Minister would be the answer. He asked me who I had met and what I am doing with my counterparts in Europe. None of the other 27 countries has a Brexit Minister. If we had one, he or she would not have a corresponding Minister to meet.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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None of them is as exposed as we are to Brexit. That is the important point.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Deputy Collins has made his point. The Taoiseach chairs the committee dealing with Brexit.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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We are the most exposed European member state to Brexit.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Deputy Collins is making a new point now. I am willing to respond to it.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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No. It is not a new point.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I refer again to the targeted and tailored survey we carried out. From the moment the referendum result was known, Enterprise Ireland contacted its 1,500 client companies. The IDA did the same. InterTradeIreland is also doing wonderful work. If the Deputy looks at its website he will see exactly what it is doing. My Department and the enterprise agencies are responding well to Brexit. I assure Deputy Collins that the Minister for Agriculture, Food and the Marine, Deputy Creed, is doing exactly the same with Bord Bia.