Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

Gabhaim buíochas leis an gCathaoirleach as ucht an cuireadh a thabhairt dom an tseachtain seo. I am pleased to be in the House to discuss the consequences for Ireland of the result of the EU-UK referendum.

I will begin by giving some details about the comprehensive series of actions my Department and I have undertaken in response to the UK referendum result. On the day of the referendum result, I established a co-ordination group on Brexit in my Department consisting of the chief executive officers of both IDA Ireland and Enterprise Ireland, along with relevant enterprise, Single Market and trade officials from the Department. This group, which I chair, continues to meet regularly and oversees the management of our response to the referendum result.

I have met with a wide range of representative organisations including IBEC, ICTU, the Irish Small and Medium Enterprises Association, the Small Firms Association, the Irish Exporters Association, the American Chamber of Commerce Ireland, the Dublin Chamber of Commerce, and the Irish Farmers Association, to provide an update on immediate responses and to reassure business in the aftermath of the result.

Last month, I travelled to Brussels, where I had a series of meetings with the European Commissioner for the Internal Market, Industry, Entrepreneurship and SMEs, Elbieta Biekowska, the European Commissioner for Trade, Cecilia Malmström, and Vicky Ford MEP, Chair of the Internal Market Committee of the European Parliament. I used these meetings to convey the unique impact of Brexit on Ireland at the earliest stage, in advance of the commencement of the detailed exit negotiations.

On 2 November, I will have meetings in London with my two recently appointed UK counterparts, the Secretary of State for International Trade, Liam Fox, and the Secretary of State for Business, Energy and Industrial Strategy, Greg Clark. Similarly, I will be using these meetings to ensure the importance of the unique circumstances for Ireland is fully understood at Cabinet level in the UK. I am conscious that a decrease in the value and-or the volume of exports to the UK will directly affect Irish industry, including SMEs and agrifood sector enterprises. Enterprise Ireland has been systematically engaging with its 1,500 clients which export to the UK. A key element of counteracting Brexit impacts will be to diversify exports to third markets by growing client participation and sales into these markets.

Last week during international markets week, more than 140 international market advisers from over 30 Enterprise Ireland overseas offices returned home to assist over 400 client companies with developing new global export plans in the context of Brexit. At my request, Enterprise Ireland has extended its schedule of Minister-led trade missions with 36 missions and events in 2016 and a further 32 other trade events for the second half of 2016. During the next six weeks, I will be leading several trade and investment missions to the US, China and Japan. The UK is and will remain a key market for Enterprise Ireland clients. The agency will continue to help exporters deepen and strengthen their presence there by helping them become as lean and as innovative as possible.

Ireland will also continue to make the most effective use of the framework of trade agreements the EU already has in place, as well as supporting the opening of new markets through the EU. These agreements, such as the EU-Canada Comprehensive Economic Trade Agreement, CETA, which will be signed by EU Ministers in Luxembourg next week, and future agreements in progress such as those with the US, Mexico, South American nations, Vietnam, Singapore and the EU-Japan free trade agreement, will all create sizeable new and diversified market access opportunities for Irish exporters.

This week's Budget Statement contains many measures which will assist Irish business to become more competitive and cope with the impact of Brexit. This includes an extra €52 million to support further job creation, innovation and support Irish companies to respond to the challenges and opportunities arising from Brexit. Importantly, we have secured additional moneys which will provide for an extra 50 staff for my Department and its agencies. The staff will be specifically tasked with assisting companies adjusting to the challenges faced as a result of Brexit, securing new business and innovation opportunities and diversifying into new markets. In addition, the rainy day fund of up to €1 billion per annum from 2019 onwards, announced as part of the budget, can be utilised in the event of a Brexit-related downturn or another global shock.

In our collective efforts to address the challenges arising from Brexit, we should not overlook whatever opportunities may emerge for Ireland on account of the UK's withdrawal. That is why I have directed IDA Ireland to explore the potential for winning more foreign direct investment. This will not be easy. The global foreign direct investment market is extremely competitive and we must fight hard to secure each and every new investment into Ireland. Other countries will also be doing their best to win potential new investments which may arise on account of Brexit. Thankfully, in our efforts to win more foreign direct investment, we can continue to rely on the selling points which make investing in Ireland attractive in the first place. The challenge for us is to make sure that these messages are communicated to the international business audience. It is for this reason my Department recently made €500,000 available to IDA Ireland to strengthen its communications capacity.

As for the implications of Brexit for relationships between North and South, it goes without saying our No. 1 priority is to ensure, no matter what happens, the peace process is protected and safeguarded. This view is shared fully by the British Government and the Northern Ireland Executive. My particular focus though is on the commercial and trade implications of Brexit for Ireland and the Border region in particular. Much will depend on the nature of the deal which will be negotiated between the UK and the EU. The Government will not be slow during that process to highlight our unique economic ties with Northern Ireland. We will also be doing our utmost to protect the interests of those companies and businesses which engage in cross-Border trade. InterTradeIreland, the cross-Border body tasked with supporting trade and commerce between North and South, will have an important role to play in this area in the time to come.

The EU's programme Horizon 2020 is an important source of funding for research and innovation activities in Ireland.It enables us to amplify the impact of domestic public investment by leveraging complementary funding from the EU. In addition to funding, Horizon 2020 provides a mechanism for researchers and companies in Ireland to network and collaborate with the best researchers and leading companies across Ireland and Europe. These benefits are particularly important for a small island nation. While the UK is the largest source of partners for Ireland in Horizon 2020 programmes, it is not by a large margin and we continue to strengthen our relationships with other European countries. It is useful to note that the UK Treasury has given an assurance that it will underwrite the payment of Horizon 2020 awards to all UK organisations for awards made while the UK is still a member of the EU, even when projects continue beyond the UK's departure from the EU.

The consequences of the UK EU referendum result will have a profound impact on the policy areas of my Department. However, Senators can rest assured that my Department and its agencies, including Enterprise Ireland and IDA Ireland, are working to ensure the most advantageous outcome for Ireland and the European Union with a view to minimising the impact on Irish enterprises, employees and consumers arising from the UK's departure.