Catherine Connolly (Galway West, Independent)
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8. To ask the Minister for Jobs, Enterprise and Innovation the measures which have been taken to assist small and medium businesses in the Border regions to prepare for all eventualities of the Brexit negotiations; and if she will make a statement on the matter. [25608/17]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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Given the extent of North-South trade, I am very conscious of the particular challenges faced by companies operating in close proximity to the border, many of which trade freely on both sides of the border.

Current trade between Ireland and Northern Ireland is extensive and far-reaching. South to North trade in goods was valued at €1.65 billion in 2016 and North to South trade was €1.05 billion. This trade is particularly significant for SMEs – over 15% of Irish SME exports are destined for the Northern Ireland market. 

A recent study undertaken for InterTrade Ireland by the ESRI analyses a so-called “worst-case scenario” whereby WTO tariffs would apply to the trade of goods between the UK and the EU’s Member States. The report’s key findings are that the imposition of WTO tariffs alone would have an effect of reducing cross-border trade by 9%.  In addition to the imposition of WTO tariffs, if the cost of Non Tariff Barriers, e.g. administrative and regulatory requirements were included, this would reduce cross-border trade by 16%. The possible imposition of customs duties on cross border trade could also represent a significant impediment to such trade. 

The Irish Government is engaged at every level in the Brexit negotiations and our trade, economic ties and our land border with the UK are central to these talks and every effort will be made to minimise the impact on the border.  You will recall that at the start of the formal talks between the EU and the UK on the 19 June, the EU’s chief negotiator Michel Barnier specifically referenced the centrality and sensitivity of Ireland’s border with the UK to the negotiations.

Since the UK referendum, the State agencies under my remit - Enterprise Ireland (EI), the Local Enterprise Offices and Inter Trade Ireland - have been active in supporting companies in assessing and addressing their exposure to Brexit.

EI’s current “#Prepare for Brexit” campaign includes a Brexit Scorecard available to all companies to self-assess their preparedness for Brexit across all aspects of their business and which generates a report suggesting appropriate responses.  A €5,000 ‘BePrepared’ grant is also available to clients to prepare a Brexit action plan.

My Department is providing InterTrade Ireland with additional funding this year to establish a new Brexit Advisory Service, which will provide factual advice, supports for capability building and other specialist expertise to SMEs.

Each of the Local Enterprise Offices in the border counties can offer advice, training and mentoring to address Brexit challenges. Each LEO can now offer financial assistance to clients to examine export options, to improve product innovation and improve the competitiveness of their business in the face of Brexit.

I secured new resources, including an extra €52Min Capital funding and funding for the agencies, extra staffing, in Budget 2017 to assist businesses to maintain and grow export markets.

Based on significant analysis and stakeholder consultation, my Department is currently working on further measures targeted at the needs of companies in the wider economy around working capital and business development.

The Regional Action Plan for Jobs for the Border region contains a large number of actions aimed at strengthening the enterprise sector in the region. In particular, the new Regional Enterprise Development Fund of up to €60m was launched on 29th May. This Fund is aimed at supporting collaborative approaches to grow and sustain indigenous enterprise and jobs across the regions of Ireland.