Written answers

Thursday, 17 November 2016

Department of Jobs, Enterprise and Innovation

Agrifood Sector

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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278. To ask the Minister for Jobs, Enterprise and Innovation her proposals to introduce an employment subsidy similar to such support provided in 1992 and 1993 for the mushroom sector, which faced serious difficulties at that time due to currency fluctuations and similar problems which have also arisen for that sector since June 2016; if she will give this request urgent consideration in view of the importance of this industry and its dependence on the sterling area for exports; and if she will make a statement on the matter. [35642/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I do not intend to introduce an Employment Subsidy Scheme for the mushroom sector at this time, in the context of economic difficulties arising from the UK vote to leave the EU, and the resultant currency fluctuations.

I am aware that a similar Scheme was introduced here in 2009, during the most difficult period of the world economic downturn, to assist Irish companies in overcoming those difficulties. This Scheme was approved by the EU Commission under its Temporary Framework state aid rules for that downturn, which concluded at end-2010.

However, a whole of Government approach is in place here today to address the UK vote.

As Minister for Jobs, Enterprise and Innovation, I am responsible for supporting Irish firms, especially our SMEs, across the whole of the economy. That is why I am making sure that I am in possession of all the detail of how Brexit impacts on each and every sector and company type – be they micro, small, medium, or even larger companies in some instances - before I finalise my proposals or make any announcements about specific measures.

My Officials have also engaged with the European Commission to gain clarification on, and a full understanding of, the scope of EU State Aid rules that currently apply. The Commission is also aware from our contacts with them that Ireland, above all other Member States, stands to be uniquely impacted by Brexit.

In order to build further on the foregoing, my Department is currently scoping out various possible responses to the short term currency challenge and I expect to be in a position to announce more detail, based on actual company needs, shortly. Any new initiative must be tailored, targeted and evidence-based in order for our SMEs to receive the maximum support possible, and in the sectors most needed.

From the strategic perspective, Enterprise Ireland, an Agency under my remit, is assisting companies to maintain and grow UK exports and extend their international reach, as well as helping companies to enhance their competitiveness. In addition, the Local Enterprise Offices, also under my remit, are working closely with those clients likely to be impacted by Brexit.

Finally, I am also aware that my colleague the Minister for Agriculture, Food and the Marine, Michael Creed TD, and Agencies under his remit, are equally engaged in monitoring the impacts of Brexit on all relevant sectors, including the mushroom sector, and is drawing the attention of all firms to supports being provided to the industry through national and EU Schemes.

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