Brendan Smith (Cavan-Monaghan, Fianna Fail)
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10. To ask the Minister for Jobs, Enterprise and Innovation the steps she will take to assist enterprises that are heavily dependent on exporting to the British market; and if she will make a statement on the matter. [30430/17]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I wish the Tánaiste well in her new role in Government. The agrifood, construction and engineering sectors are major players in our local economy in Cavan-Monaghan and the Border region in particular. That goes for north of the Border as well. Those sectors have already been impacted by Brexit, particularly with the reduction in the value of sterling. The Government needs to give out a clear message that new initiatives will be taken to support those sectors through difficult times. The longer the Brexit negotiations go on, the greater the uncertainty. There is real concern among enterprises that built up good businesses in very difficult times and they need support from Government now.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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I recognise the points Deputy Smith is making. I can see from my conversations with the IDA and Enterprise Ireland in particular that what the Deputy says is absolutely accurate in terms of the challenges facing companies that are dependent on the British market. The UK is a strategically important market for Irish-owned companies. Some sectors such as food, timber, construction and engineering are very dependent on that market. The uncertainty around Brexit is a real issue. Some of the companies have said they are somewhat concerned that we have not seen the same focus on trade that we have seen on other issues. That is to some degree a timing issue in the negotiations. It is worth saying that in 2016, 35%, or €7.55 billion of Enterprise Ireland client exports went to the UK.  By contrast, ten years ago, 45% of EI client exports went to the UK, so we have seen market diversification. Market diversification needs to be supported. There will be a particular focus on the eurozone market, which is important. EI recently launched a strategy to increase client exports to the eurozone by 50%, from €4 billion to €6 billion, by 2020. Since the UK referendum result, my Department and its agencies, InterTradeIreland, Enterprise Ireland and the local enterprise offices have been actively engaging in supporting companies to assess and address their exposure to Brexit. I have already spoken about the EI scorecard. I encourage all businesses to take part in that exercise. Some, but not all companies - even those with huge exposure to the UK market - are necessarily getting involved in that exercise. It is essential they do so and look at their strengths and how they can diversify and look at innovation in order that they have new products. It is not that easy to move from the UK market because companies went there for a very good reason; they were meeting a need there and the prices were good. Diversification will be challenging but it is necessary.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank the Tánaiste for her reply. I would like her to come to the region and meet enterprises. Over the years we have had particular obstacles in trying to attract foreign direct investment to Cavan-Monaghan and the Border region because of the troubles we endured as a community over many decades. Thankfully, during that period people with great entrepreneurial spirit developed businesses and enterprises. Thankfully, some of those in my constituency of Cavan-Monaghan have become international corporations. There was a great spirit of initiative and of getting up and doing things. Those companies are predominantly in the agrifood, construction and engineering sectors, as I said earlier. They export to Britain, which is their major market so the fluctuation in the value of sterling is an issue. Similarly, Britain is often a landbridge for product leaving our area and heading to destinations in other parts of Europe or outside Europe because the ports in Northern Ireland are heavily used by companies from south of the Border. There are particular difficulties there with regard to access to other markets. If the Tánaiste could come to the region and meet with those small, medium and large enterprises, she would get a feel for the concerns they have. I am not suggesting she does not have that knowledge but I think it would be beneficial. Some weeks ago, I brought a delegation of senior French parliamentarians to the Cavan-Monaghan area. They met businesses and on leaving Ireland they told me they went away with a totally new perspective on Brexit and how it affects our island. They said they would bring that message back to their parliament and Government. It is important that at senior Government level, people like the Tánaiste are in a position to come and meet those enterprises and local communities.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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I certainly will be doing that. Part of my remit is to make sure there is job growth in the regions. There are particular issues in the areas the Deputy mentioned. I will make a number of points. Clearly, we want to continue to export to the UK but there will have to be some developments and we will have to reposition our offer to some degree. The UK market, however, will remain key. Having said that, we will be obliged to make a number of other strategic responses to Brexit. We will have to look at innovation and market diversification. Those companies will have to if they have not engaged already. It varies quite a lot. Some companies are really analysing very carefully and clearly the potential impact of Brexit although it is hard to know precisely given the uncertain state of the negotiations at this point in the early stages. Some companies are examining that. The Department is working on measures targeted at the needs of companies across the economy around working capital and business development because we will have to support our companies during this very difficult period for them.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I emphasise that I am a realist and I know it is not easy to attract foreign direct investment to rural areas. An additional impetus is needed to try to attract foreign direct investment to the Border area, which has the skills pool and people required. At a time such as this, we must ensure there is good collaboration between agencies, North and South, as there has been over the years. Many of the companies and enterprises I spoke about have sister companies north of the Border and many are all-Ireland companies, with plants on both sides of the Border. Business owners from Armagh, Fermanagh and Tyrone have visited me and expressed great concern about the effects of Brexit on their companies. It is equally important that they get through these difficult times. We must address the issues, concerns and challenges arising from Brexit on an all-Ireland basis. We must ensure the co-operation that has existed, particularly since the signing of the Good Friday Agreement, is built upon in the challenging 18 months ahead of us. The loss of a job in Fermanagh impacts on my constituency, just as the loss of a job in Cavan-Monaghan impacts on the economy of Fermanagh. Thankfully, for upwards of 20 years, the island has been experiencing a great movement of people, goods and services that it did not experience prior to 1998.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Deputy makes the point very well regarding the importance of North-South trade and the great developments we have seen in this area, which have been facilitated by the political changes of recent years. I hope these issues can be resolved in the near future because trade between North and South is significant. As the Deputy noted, changes on one side of the Border impact on the other side of the Border. For this reason, a particular energy is needed to deal with the challenges he describes. This is one of the reasons we established the all-island dialogue, which Deputy Smith may have attended. The dialogue has featured tremendous engagement between businesses North and South and it will be a bulwark against the challenges that will inevitably arise.

An increased focus is needed on IDA Ireland and Enterprise Ireland and we must support business through this difficult period. We must also ensure the appropriate financial initiatives are in place. One of the big issues facing all companies is access to finance to enable them to engage in research and innovation. While it is difficult in a period of uncertainty to invest in innovation and research and development, it is key to growth. Companies must be provided with finance to help them prepare for Brexit. I take the Deputy's points regarding the particular needs of the Border area.