Dáil debates

Tuesday, 10 July 2018

5:45 pm

Photo of Lisa ChambersLisa Chambers (Mayo, Fianna Fail)
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72. To ask the Minister for Jobs, Enterprise and Innovation the status of the uptake of Brexit be prepared grant supports provided by Enterprise Ireland to date; and if she will make a statement on the matter. [30643/18]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Will the Minister of State at the Department of Business, Enterprise and Innovation, update us on the uptake of the Brexit be prepared support grants provided by Enterprise Ireland to its client base? Will he make a statement on the matter?

Photo of John HalliganJohn Halligan (Waterford, Independent)
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On Friday last, my colleague the Minister for Business, Enterprise and Innovation, Deputy Humphreys, published new Economic and Social Research Institute, ESRI, research commissioned by my Department on the potential impacts of Brexit on our trade relationships with the UK, and it was stated then, and I say it again, that the Government is committed to ensuring the continued growth and resilience of Irish enterprise after Brexit by helping firms to remain competitive.

In the immediate term, the focus of the Department and its agencies is to promote firm level awareness of, and level of preparedness for, Brexit. Enterprise Ireland's be prepared grant is one of a number of supports provided through the Department's agencies. It was introduced in June 2017, and is a grant support of up to €5,000 for SME clients in preparing a plan to mitigate risks and optimise opportunities arising from Brexit. To date 113 companies have been approved for support under this initiative. However, it is important to highlight that the be prepared grant is one of a suite of initiatives designed to help companies plan for Brexit and complement the range of existing Enterprise Ireland supports to make companies more competitive and resilient in export markets.

So far in 2018, EI has supported 639 Brexit exposed clients. These supports included 50 innovation grants, 108 competitiveness grants and 100 market diversification supports. In addition, 180 Brexit exposed clients have participated on trade missions in the first six months of the year.

In terms of Brexit advisory services, EI's seventh Brexit preparedness clinic, which I attended, took place in the Aviva Stadium on 21 June with more than 110 companies attending, 67 of which were EI clients. Four more clinics are planned over the next six months. To date, 2,328 Brexit scorecards have been completed, 999 by EI clients, 231 by local enterprise office, LEO, clients and 1,098 by non-clients. The number of 'act on' consultancy assignments completed is 41 and a strong pipeline is in place.

Additional information not given on the floor of the House

A range of sectoral round table client discussions have been also convened and are planned, including in financial services. The LEOs are also providing a range of supports including, in the year to date, 186 clients have availed of Technical Assistance for Micro-Enterprises TAME programme and 137 have availed of 'lean for micro' Brexit-related supports. Similarly, InterTrade Ireland is also providing a range of supports with, for example, 149 'start to plan' vouchers with a value of up to €2,000 approved to date.In conclusion Deputy, I would emphasis that the be-prepared grant is but one of a number of supports that are helping businesses to plan their Brexit response and I will ensure we step up our work with impacted firms as the potential shape of Brexit becomes clearer in the coming months.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Behind the Minister of State's comprehensive reply there is poor uptake of the various schemes available to companies, for example, 2% of Enterprise Ireland's, EI, clients. EI was established for export. Only 2% of the exporting companies supported by EI have applied for the be prepared grant.

There are 250,000 small businesses in this country and just 2,311 have filled out the Brexit small and medium enterprise, SME, scorecard to self assess their exposure to Brexit. We have a lot of work to do. It does not just fall to Government but to stakeholders in broader society, the business interest advocacy groups, chambers of commerce and others, but government must lead on this.

Photo of John HalliganJohn Halligan (Waterford, Independent)
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The local enterprise offices provide a range of support, including in the year to date 185 clients have availed of what they call the technical assistance to micro-enterprises. I acknowledge what the Deputy says but we have a booklet, which is on our website, entitled Building Stronger Businesses Getting Brexit Ready. The Department and its agencies work intensively with Irish companies to deal with the challenges and opportunities arising from Brexit. There are strategies to maintain and grow in the UK market. The take-up was not as big as we thought it would be in the many companies we have met dealing into the UK market. Let us give companies credit. Many Irish companies are confident and competent that they can deal with whatever Brexit throws at them and they do not necessarily need to take up any assistance from EI or otherwise. We would not be too sure what companies they would be. We can only go by the companies that come to us with all that we make available to them. One of the major initiatives we had was the €300 million Brexit loan scheme to enable companies fund a Brexit response strategy. I urge companies to look at the summary of Brexit supports available from the Department. It goes through loan schemes, tourism, hospitality and everything one can think of. There is an onus on companies to come to the Department if they want help and want to know the schemes that are available. We are working intensively with Irish companies to maintain business and to grow in the UK market.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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The last thing we need to do is scaremonger business but at the same time we need to make sure there is access to information and that businesses are prepared for eventualities. There is one certain eventuality: on 29 March next year the UK will cease to be a member of the European Union. That is a certainty. What comes after that is grave uncertainty.

We have to support businesses by means of access to information, grant schemes and the scorecards. We must ensure that a sector by sector detailed analysis is done of the impact that various scales of Brexit could have. If the rules of the World Trade Organization, WTO, are reverted to in the event of a hard Brexit, for example, what impact would that have and what tariffs could be placed on Irish products entering the UK? I refer also to the softer, linear type of Brexit that might evolve during the discussions in the coming months in the context of what was announced at Chequers last Friday and what might transpire towards the end of the Council meeting in October or November. There is much work to be done and we are depending on the Minister, Deputy Humphreys.

5:55 pm

Photo of John HalliganJohn Halligan (Waterford, Independent)
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I will address Deputy Kelleher's question by saying that the Copenhagen Economics report did that. An interesting statement was made this morning by Mr. Simon McKeever, the CEO of the Irish Exporters Association. He acknowledged that much work is being done by the Government. As the Minister stated earlier, we are reasonably prepared, considering the complexities that face us and the unknowns. We do not have to go into great detail regarding what is happening in Great Britain.

We are doing everything we can with small and medium-sized companies and Enterprise Ireland. We have the market discovery fund, at which everybody should look, that offers three levels of grants. The first is up to €35,000, the second is greater than €35,000 but less than €75,000 and the third is greater than €75,000 but less than €150,000. The fund was launched in January in order to encourage companies to expand. We are confident and not only are we urging companies to be resilient, we are also urging them to expand into the English market and into new markets. We are providing finance to allow them to do that. All the help we are giving companies and everything we are making available can be seen on the website. We are doing everything possible. For example, we launched the credit guarantee scheme earlier today. As Brexit looms - or perhaps does not since we are not too sure of what is happening - the Department is well prepared to deal with whatever outcome it may have for companies in Ireland trading into the UK or elsewhere.