Maurice Quinlivan (Limerick City, Sinn Fein)
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2. To ask the Minister for Jobs, Enterprise and Innovation the way in which she plans to address the level of unpreparedness of businesses for Brexit (details supplied). [30623/17]

Maurice Quinlivan (Limerick City, Sinn Fein)
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The question is about Brexit and the unpreparedness that exists not just in Government, but in businesses across the State. A quarterly survey of InterTradeIreland showed that 97% of businesses have no plan in place to deal with Brexit, while a later survey showed that 98% had no plan, so the level of preparedness had gone down.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Government is investing heavily in promoting and supporting the need for businesses to become Brexit-ready. I agree with the Deputy that we need companies to think very clearly about the challenges posed by Brexit. Ever since the result of the UK referendum, the agencies under my remit have been highly engaged in encouraging and supporting companies to prepare for Brexit. Enterprise Ireland created a UK export website featuring documents, videos, etc., addressing the key Brexit challenges, including the immediate currency aspects.

EI's current Prepare for Brexit campaign includes a Brexit scorecard and this is being taken up by more and more companies to self-assess their preparedness. It encourages them to think about the different elements of Brexit and how they may be impacted. There is also a Be Prepared grant of up to €5,000, which is available through the local enterprise offices. Some 12,000 businesses have accessed it and this shows that companies are thinking about it and analysing their situation. The LEOs and EI are also working directly with clients and Bord Bia has launched a similar tool.

InterTradeIreland interviewed 750 SMEs on both sides of the Border in the period January to March 2017, which is a relatively small sample. I am concerned about the lack of preparation in companies. My Department recently published the findings of a survey of over 1,000 SMEs on the challenges posed by Brexit, which indicated that, while only 37% felt that there was some immediate impact, 61% expected to be impacted over the following 18 months. Currency costs and financial issues were the key concerns.

Maurice Quinlivan (Limerick City, Sinn Fein)
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The first survey showed that 97% of businesses were not prepared and the next showed 98%, when one would have expected it to go in the other direction. The level of unpreparedness is unacceptable one year on from the Brexit vote. The fact that the level has deteriorated should concern us a lot.

InterTradeIreland's staff levels have dropped consistently over the past six years and it has fewer staff than last year, despite the Brexit vote and the increased workload this has brought. A freedom of information request from the Department outlined that InterTradeIreland already operated on a very tight budget, given the cuts imposed jointly by both finance Departments, and it is just about able to carry on its legislative duties.

Enterprise Ireland has lost 273 members of staff in the past ten years. How can this agency realistically prepare businesses exposed to Brexit in addition to the usual work it does when staff numbers are depleted so much? Is the level of staffing and funding affecting the preparedness levels of businesses for Brexit?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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There is much work to be done by all stakeholders, including the Government and organisations representing businesses. Judging from my experience yesterday with many of these groups and from a meeting I attended in Enterprise Ireland last week with a range of businesses, there is a wide variation in companies' preparedness for Brexit and awareness of it. Companies totally dependent on the UK market are exquisitely sensitive to the impact and are thinking through market diversification and the research and innovation they need to do. There is much thought and concern on the issue. Initiatives are being taken by many companies. Enterprise Ireland is working hard to ensure companies are putting plans in place. The Department is supporting InterTradeIreland and providing it with additional funding this year to undertake a range of initiatives to help SMEs adapt to changing circumstances. The impact on small and medium enterprises, in particular those with a dependency on the UK market, will be very challenging. They will need to diversify, which can be challenging at a time when companies are watching their margins and it can be difficult to put the money in. No effort will be spared to work with businesses and their representatives to ensure they have plans in place to deal with Brexit.

Maurice Quinlivan (Limerick City, Sinn Fein)
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I thank the Minister for taking an interest in this issue. I also want to mention the recent admission of the Minister for Foreign Affairs and Trade, Deputy Coveney, that special status for the North is needed. However, we must ensure the agencies discussed today are ready to assist in all possible circumstances, including no deal being reached and World Trade Organization, WTO, tariffs introduced. As a result of the disarray in the Tory Government in Britain, this outcome is a very strong possibility, and we consequently need to prepare our jobs agencies to take pre-emptive action to help businesses and exporters. To assume the DUP will do anything positive for Ireland with respect to Brexit would be a massive mistake.

In excess of 1,933 categories of goods are traded South to North and 2,269 traded North to South. Businesses will need extensive help in navigating any obstacles should the worst come to pass and no deal be agreed. Will the Minister commit to re-examining staffing levels at these three agencies to ensure they are adequately resourced and staffed and can provide all necessary assistance and preparation?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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I have made it clear that we will be supporting InterTradeIreland and increasing its budget. The Department and I have been working on further measures targeted at the needs of companies in terms of working capital, which is an issue, and business development. We will be surveying companies again in the near future. The Deputy is correct in terms of the impact on trade between North and South and the need to be alert to that. Trade between the Republic of Ireland and Northern Ireland is currently extensive and far-reaching. The value of goods traded South to North in 2016 was €1.65 billion while North to South trade was €1.05 billion. It is very significant for SMEs. Over 15% of Irish SMEs' exports are destined for the Northern Ireland and the key sectors involved include dairy products, meat and live animals. A recent study undertaken by InterTradeIreland and the ESRI analyses a so-called worst case scenario whereby WTO tariffs would apply. It shows that there would be a very significant effect on trade between North and South if that eventuality were to occur. That points to the importance of the Brexit negotiations, the right outcome being reached and being very clear about the impact on trade.