Written answers

Thursday, 23 March 2017

Department of Jobs, Enterprise and Innovation

Brexit Issues

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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202. To ask the Minister for Jobs, Enterprise and Innovation the degree to which her Department continues to make contact with prospective investors inside and outside the European Union with a view to ensuring a strong and vibrant economy after Brexit with particular reference to the need to establish alternative investment and markets; and if she will make a statement on the matter. [14671/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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In our collective efforts to address the challenges posed by Brexit, we should not overlook whatever opportunities may emerge for Ireland on account of the UK’s withdrawal from the EU.

One such opportunity is the possibility for attracting increased foreign direct investment – particularly from the Financial Services sector. That is why I have directed IDA Ireland to explore the potential for winning more FDI on account of Brexit and the Agency and its staff are already working hard with this goal in mind.

In our efforts to win more FDI, we can continue to rely on the selling points that make investing in Ireland so attractive in the first place. Ireland will also, of course, be remaining as a member of the EU and Eurozone.

All of this means Ireland will remain an appealing destination for overseas investors in both the pre and post Brexit context.

Our challenge is to make sure these messages are communicated to the international business audience. It is for this reason that additional funding was provided to the IDA to strengthen its communication capacity.

These additional resources will help the Agency target key markets and hopefully secure investment that will lead to future jobs and opportunities for the people of this country.

IDA has also been provided with additional Capital supports for 2017 which will be used to provide grant assistance to FDI companies seeking to expand or to locate here and to support the IDA regional property programme.

IDAs enhanced property capacity is also important to retain and grow the existing client base in Ireland. In 2017, the IDA will further progress its Regional Property portfolio by investing in 3 new Advance facilities in:

- Galway;

- Limerick; and

- Dundalk.

IDA believes there are potential FDI opportunities for Ireland from BREXIT. These opportunities are likely to be found along differing timelines, partially influenced by sector. The potential sources of FDI are likely to come from:

- existing IDA Clients with a presence in Ireland who also have a presence in the UK;

- overseas clients (US, European and Asian) who have a presence in the UK but not in Ireland;

- UK companies operating in the UK who now need certain access to the European Market; and

- International clients without a presence in Europe seeking a European home.

Looking at the opportunities for our indigenous enterprises, Enterprise Ireland’s strategy for the period 2017-2020 developed following the UK vote to leave the EU focuses on:

- Consolidating and growing exports into the UK market

- Expanding the Irish export global footprint, re-orienting towards N America, Canada, Asia and the Middle-East

- Expanding the EI Export Platform

I have previously announced 39 extra staff for EI's overseas offices and in the Irish based team to support exporting companies in the context of Brexit. Staff will be assigned to:

- Markets that are growing and have scale (including China, India, Latin America, Africa);

- Markets where we are already well established but with potential for further growth (including UK, France, Benelux, Germany, USA, the Nordics).

There is immediate potential to diversify exports to third markets.  Last year sales to North America grew by 27%, Northern Europe by 8% and Asia-Pacific region by 11%.

In line with the recently published Trade & Investment Strategy, EI will undertake an enhanced programme of trade and investment missions and other trade promotional events in 2017.  These are all at the planning stage at the moment, but will cover various sector specific markets in the US, Canada, United Arab Emirates, Spain, China, Australia, France, Germany, Nordics, to name but a few.

The UK is and will remain a key market for EI clients who recorded over €7.5bn in exports last year.  EI will continue to actively help exporters deepen and strengthen their presence there by helping them become as competitive and innovative as possible.

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