Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

42. To ask the Minister for Jobs, Enterprise and Innovation the uptake of the Brexit business supports to date; the number of businesses that have availed of the Brexit loan scheme, the future growth loan scheme, be prepared grant and the market discovery grant; the number of businesses that have had their applications for these grants rejected; and if she will make a statement on the matter. [20613/19]

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I am seeking an update from the Minister on the uptake of the Brexit supports to date to include how many have been allocated per category and how many have been denied; and if she plans to introduce new measures to help businesses prepare for Brexit. I have asked this question in different guises over the past number of months.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for raising this matter.

We have been preparing for Brexit for well over two years. The last three budgets introduced supports to help businesses prepare for Brexit. Informed by detailed research, my Department and its agencies have put in place extensive supports, schemes and advice to ensure that businesses are prepared for Brexit. These measures aim to assist businesses in identifying key risk areas and the practical preparatory actions to be taken over the coming weeks and months.

The €300 million Brexit loan scheme provides relatively short-term working capital - one to three years - to eligible businesses with up to 499 employees to help them innovate, change or adapt to mitigate their Brexit challenges. The scheme is open to eligible businesses from all regions of the country, including those in the Border counties. The scheme was launched in March 2018 and, as at close of business on 3 May, 608 eligible applications were received, of which 550 have been approved, with 124 loans progressed to sanction at bank level to a value of €27.76 million. 

The future growth loan scheme was launched in March 2019. The scheme provides a longer-term facility - eight to ten years - of up to €300 million to support strategic capital investment for a post-Brexit environment by business at competitive rates. This scheme makes available loans of €50,000 to €3 million, with loans of under €500,000 being provided on an unsecured basis. To date, there have been 115 applications for eligibility under the scheme, of which all have been approved and none have been deemed ineligible.

The Enterprise Ireland Be Prepared grant supports its clients in planning to mitigate risks arising from Brexit.

To date, 194 grants have been approved. The Enterprise Ireland market discovery fund encourages businesses to undertake market research and develop viable and sustainable market entry strategies in new geographical markets. To date, 149 businesses have had projects approved under the market discovery fund.

Enterprise Ireland engages with client companies through teams of sectoral focused development advisers. Based on this, the agency can tailor a support package to the companies' growth potential based on their ambition, capability and need. The market discovery fund and Be Prepared grant are grant supports available to companies to deliver on the identified potential. For example, in the case of the market discovery fund, client companies seeking support under this grant will undergo a due diligence process with their Enterprise Ireland development advisers. As a result of this interaction and process, Enterprise Ireland does not keep track of rejected applications.

While I have seen a very positive uptake of the supports available, I am conscious that the delays to Brexit may have led businesses to defer their immediate planning. However, the UK's exit from the EU will mean changes for Irish business. I want businesses to know that my Department and its agencies are here to help.

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It is very concerning to hear the figures provided by the Minister. Only 9% of the total of €300 million Brexit loan scheme has been sanctioned at bank level to date. Does the Minister have a target for this scheme? Is there an expected uptake rate and a timeframe for achieving that? Has the figure of €300 million been plucked from thin air to sound good or is the Minister expecting the remaining €272 million to be allocated before Brexit? Clearly that is unlikely to happen. Will the Minister indicate what types of companies have been allocated these cheap loans so far? Are they indigenous Irish companies and businesses or multinational companies? How many employees to they have on average?

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government has been working to raise awareness of the Brexit supports through events, including through clinics and seminars, and the Getting Ireland Brexit Ready campaign. When it comes to Brexit preparedness, it is important to note that companies are choosing from a full suite of supports available from the agencies. A wide array of different supports is in place to help businesses prepare across Departments and agencies. Businesses must ultimately decide for themselves whether they want or need to avail of those supports. In the case of the Brexit loan scheme, it is important to remember that this is a loan and that businesses will still have to pay it back. Understandably, there is a natural reluctance on the part of businesses to take on debt until the full details of the Brexit challenge become clearer. It is important that the loan is in place in order that businesses are able to avail of it when it is needed. I encourage them to apply for the loan and leave it in place without drawing it down immediately. I engage with and meet businesses on a regular basis.

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The uptake rate is less than 10%. Unfortunately, the Minister did not answer my question, which concerned the types of companies that are availing of the loans. In the case of the market discovery fund, more should be done to diversify our export markets and reduce our over-reliance on American foreign direct investment, FDI, as welcome as that is. According to Enterprise Ireland's export performance in global markets reports, just 1% of our exports went to the entire continent of South America in 2017. In addition, just 9% of exports went to the continent of Africa, the Middle East and India combined. We need to diversify our export destinations to avoid a repeat of an over-reliance on any single market. Furthermore, steps must be taken to diversify the locations from which we secure foreign direct investment. Recent figures show that of the 1,444 client companies, more than 53% are from the United States, with just seven of the 1,444 coming from the entire continent of Africa. Will the Minister outline what steps she has taken to diversify our export markets and the countries of origin of IDA Ireland client companies?

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Additional funding was provided to both Enterprise Ireland and the IDA to get more boots on the ground and to diversify our markets. There have been extensive trade missions to China and Japan. The Minister for Agriculture, Food and the Marine, Deputy Creed, is in China at the minute, and I myself have been there, as well as to Singapore. The Minister of State at the Department of Business, Enterprise and Innovation, Deputy Breen, has been to a number of different countries in South America. The EU is carrying out negotiations at the moment; a trade deal is currently being negotiated with New Zealand, and I plan to travel there in June. I have also been to Australia. A huge amount of work is being done in terms of diversifying markets. We have also increased our share of the European market. Funding was provided so that Enterprise Ireland could put additional people out there to look for new markets. There is a lot of work going on in that space in terms of broadening our market base.