Niall Collins (Limerick County, Fianna Fail)
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48. To ask the Minister for Jobs, Enterprise and Innovation the contingencies and supports in place to safeguard Irish jobs and exports in a hard Brexit scenario; the number of EU Competitiveness Council Ministers' meetings at which 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. [22987/17]

Niall Collins (Limerick County, Fianna Fail)
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I thank the Leas-Cheann Comhairle for letting me in with this question. It is to ask the Minister the contingencies and supports in place to safeguard Irish jobs and exports in a hard Brexit scenario, and the number of EU Competitiveness Council Ministers' meetings at which she has made the case to revise the state aid rules.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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In advance of the referendum, my Department conducted a contingency risk assessment of the potential impacts of Brexit across policy areas of the Department. We are continuing to refine our analysis after the referendum and we have been working with the enterprise agencies and across government to put in place additional resources and actions 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 the enterprise agencies to assist companies in the context of Brexit.

In all my engagements with EU 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 both the immediate and potential impact of Brexit on the most exposed sectors of the Irish economy and the need to consider mitigating actions. Officials of my Department have also had discussions with senior officials from the Directorate-General for Competition and other relevant directorates-general to sensitise them to the potential difficulties for Irish businesses arising from the Brexit referendum result. These discussions are ongoing and will continue to address all relevant issues and challenges and will explore all possible options.

While I have attended three out of three meetings of the EU Competitiveness Council, the issue of revisions of state aid rules on foot of Brexit has not formed part of the Council's formal agenda. Of course, as the Deputy will appreciate, the UK continues to participate fully at the Council, and it is more appropriate, therefore, for our interests to be pursued bilaterally with the Commission and other member states.

Niall Collins (Limerick County, Fianna Fail)
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I have no doubt that, following a number of business surveys that have been cited recently, there is a sentiment among businesses indicating both a lack of preparedness for Brexit and a hard Brexit. The message is coming from businesses that they feel insufficiently prepared. The Minister and her Department have to share some of the culpability over the lack of preparedness among businesses. It is concerning when one compares the size of the Brexit unit in the Minister's Department, which has up to four staff, with that in the United Kingdom, where there is a Brexit Department with a staff of 335 officials.

Will the Minister seriously consider creating an enterprise stabilisation fund? This was done in 2008 when the crisis hit this country and it helped business. Will the Minister consider seriously and consult her Cabinet colleagues on resourcing an enterprise stabilisation fund?

With regard to the state aid rules, the Minister indicated to me previously by way of replies to parliamentary questions that she attended a number of meetings of the EU Competitiveness Council. She now states she has attended three out of three meetings and that the matter did not come up on the agenda. We really need to be pushing it. I have raised this previously. If the matter is not on the agenda, why can it not be put on it? I presume there is an "any other business" item on the agenda, just as there is in any normal meetings across the world. Could it not be raised under that heading if it is not on the formal agenda? Our current position on state aid rules is a serious issue and an impediment to dealing with Brexit.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The Deputy mentioned the number of staff we have in the Department. We have different committees right across government. While the United Kingdom may have a Brexit department, I assure the Deputy that we have committees right across all Departments, including mine, meeting the various sectoral interests and enterprises. We are covering off that really well.

Even yesterday, we launched the Enterprise Ireland eurozone strategy under which we will encourage and help businesses to break into markets outside the UK and to get involved not only in the eurozone market but also the US, Asia-Pacific and other emerging markets. The Deputy will have heard the recent announcements of companies setting up in Ireland and the jobs that will be created. Our unemployment rate has reduced to 6.2%. We are working hard and everybody in my Department is focused on Brexit during much of their day's work.

The Deputy also asked about an enterprise stabilisation fund. We are conducting analysis on this and we have actively listened to the needs of business.

Niall Collins (Limerick County, Fianna Fail)
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I would like the Minister to address the issue of state aid rules. Why has there been no action by her, her Department or the Government on revising the €200,000 cap? Could she give some insight on where she is going on that, if anywhere?

Second, I heard an interview with Ms Julie Sinnamon, head of Enterpise Ireland, yesterday about the increase in exports to the UK coming to a shuddering halt over the past number of months. That feeds into the sentiment and fear about Brexit. This reinforces the case I am making for an enterprise stabilisation fund and the review of state aid rules.

Finally, will the Minister comment-----

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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That is three questions.

Niall Collins (Limerick County, Fianna Fail)
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----on the review of Enterprise 2025, which we have been calling for? That is a policy document of her Department and it has not been reviewed in light of the Brexit referendum result. It is a shocking indictment that we have not had a signal from the Minister or her Department that the document will be reviewed and updated, and that the various targets and outputs in it have not been reviewed in light of Brexit.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I told the Deputy previously that we are reviewing Enterprise 2025 and I will have a first review document on that in June with another report to follow later in the year.

Ms Sinnamon said yesterday that exports to the UK had only increased by 2% when we were hoping for a 12% increase. The eurozone strategy launch yesterday was about encouraging companies to grow their business in Europe.

We are working with the Departments of Finance and of Agriculture, Food and the Marine, Enterprise Ireland and SBCI to develop supports to respond to the needs of businesses impacted by Brexit. First, there will be a Brexit working capital guarantee scheme, which is a loan guarantee for SMEs that need additional liquidity to cope with working capital challenges brought about by Brexit. Second, there will be a longer term business development scheme. We are considering the need for such a scheme to support SMEs to reposition for the post-Brexit environment. The state aid implications are currently being worked through. A great deal can be done within the existing state aid framework. We are confident that the measures in development will be state aid-compliant. However, should issues arise that require an approach that does not fit within the existing rules, we will discuss that with the EU Commission.