Niall Collins (Limerick County, Fianna Fail)
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262. To ask the Minister for Jobs, Enterprise and Innovation her views on whether enterprise stabilisation measures are required as a policy tool following the recent Brexit referendum in the UK; and if she will make a statement on the matter. [36794/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The recent Brexit referendum has introduced an amount of uncertainty into the trading relationships between Ireland and the UK, which has resulted in part from a degree of volatility in the Euro/Sterling exchange rates and concerns about future investment plans in the UK market. Exchange rate fluctuations will pose real challenges for low margin exporting sectors that are reliant in whole or in part on the UK market.

The volatility of exchange rates is clearly evident from developments over the last few months. An initial slide in the value of sterling was followed by a stable period which was then followed by a further weakening of the pound only for it to rebound towards £0.85:€1 in recent days.

Given Brexit is likely to represent a structural shift in the UK trading relations with partners, short medium and long term responses are needed for Irish business. These include market diversification, cost reduction, value-add, innovation and price repositioning. My Department and agencies are putting in place measures to address these issues for client companies and I would encourage all companies hit by these changes to contact the enterprise agencies concerning measures to mitigate concerns.

Officials from my Department, the Department of Finance, Strategic Banking Corporation of Ireland and Enterprise Ireland are also working on the issue of short term support for vulnerable but viable companies impacted by the Brexit referendum.

The objective of this approach is to design a tailored, targeted evidence based response to industry’s real needs. In this respect a structured dialogue with industry is currently ongoing and on conclusion of that dialogue I will, if appropriate, bring forward further proposals to address the ongoing concerns of Irish firms.