Dáil debates

Tuesday, 16 May 2017

Ceisteanna - Questions (Resumed) - Priority Questions

Departmental Funding

5:00 pm

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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49. To ask the Minister for Jobs, Enterprise and Innovation if her attention has been drawn to the fact that InterTrade Ireland is chronically underfunded; and the reason she is not providing it with substantially more funding and resources to cope with Brexit (details supplied). [23050/17]

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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This question is about funding for InterTrade Ireland. According to a briefing note on a meeting the Minister had with EU Commissioner Bienkowska in September, released under a freedom of information request from me, she specifically stated that InterTrade Ireland already operated on a very tight budget given the cuts imposed and is just about able to carry out its legislative remit. If the Minister is aware that InterTrade Ireland is chronically under-funded, why is she not providing it with substantially more funding to cope with Brexit?

5:10 pm

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Funding of InterTradeIreland, ITI, is provided on a 2:1 basis by my Department and its counterpart in Northern Ireland, respectively. Discussions between both Departments to finalise the body's budget for 2017 have not yet been concluded, largely because the level of funding cannot be formally agreed until an Executive is in place in Northern Ireland. Those discussions, once completed, will determine the overall budget for the remainder of this year, and we are focused on reaching the outcome that equips the body with the financial resources it requires.

Having visited ITI's offices recently and met its management team in March, I am very much aware of the important role it has in helping SMEs address the commercial challenges associated with Brexit. That is why I have made additional financial resources available to ITI to supplement its main annual budgetary allocation. This will bring its total allocation from my Department in 2017 to €7.9 million. Last year, for example, my Department funded a study, which will be published shortly, examining some of the tariff-related impacts Brexit may have on cross-Border trade. Further financial support, of €250,000, was allocated to allow it to undertake a series of new practical Brexit-related initiatives. We will keep the financial requirements of ITI under review throughout 2017.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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I am glad the Minister has acted on this issue. I highlighted it for her last week. I appreciate her initiative with ITI. I appreciate the work she has done to date and I do not want to criticise that; I am just concerned that businesses North and South have yet to realise the potential impact of Brexit. We need to make sure ITI is fully resourced to provide SMEs with the awareness and assistance they will need.

Recent ITI figures released yesterday in a press release by the Minister show that 98% of businesses surveyed in the North and South have no plan in place to deal with the consequences of Brexit. Therefore, the area clearly needs additional resources. In the Oireachtas last week, Mr. Michel Barnier said:

Customs controls are part of EU border management. They protect the Single Market, as well as our food safety and standards.

That implies a Border. How hard the Border will be remains to be seen.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I understand how important it is that ITI have a sound and strong financial footing. It is especially the case given the important role it will play in helping SMEs address the challenges that Brexit will present. That is why I have made additional funding available. I will keep its requirements under review. We must remember, however, that North-South bodies are funded on a joint basis by the authorities in both jurisdictions. Two thirds of the costs are supplied by this Government, and the remaining third is set by Northern Ireland. We are, therefore, precluded from simply increasing the main budgetary allocation unless corresponding additional financial resources are provided by the authorities in the North. That is the case for all North-South bodies, not just ITI. We have made it clear to the authorities in the North how much we value the work ITI undertakes. We are working with them on an ongoing basis to ensure the body will have the capacity and resources it needs to help businesses on both sides of the Border.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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I do not necessarily agree with the Minister when she says we cannot increase expenditure down here without waiting for the North on certain issues. I am glad, however, she is taking such an interest in cross-Border trade. I hope the research project undertaken by the ESRI and ITI will be published shortly to allow for a detailed examination of trade across the island and the impact Brexit could have. If we do not achieve special status designation for the North, we will face a very difficult set of circumstances. Can the Minister give us any update on the progress of the study and state when she hopes it will be published?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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This study will be published very soon. As the Deputy knows, it is a study on the consequences of the application of tariffs on trade over and back across the Border. We will be publishing it very soon.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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We will move back to Question No. 48, in the name of Deputy Niall Collins.