Niall Collins (Limerick County, Fianna Fail)
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49. To ask the Minister for Jobs, Enterprise and Innovation the tools being developed for firms with an exposure to the UK market in line with state aid rules; and if tools are being developed to cater for increased flexibility on state aid rules. [38316/17]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Government is conscious of the need to consider the types of supports that Irish businesses may require to address challenges arising as a result of the Brexit Referendum, which is likely to represent a structural shift in the UK trading relations. Short, medium and long term responses from market diversification through to price repositioning will be needed.

My Department has been working with the Department of Finance, EI, SBCI and Department of Agriculture to develop potential supports to respond to the needs of businesses impacted by Brexit. In particular work is progressing on the development of a proposed Brexit related Working Capital Guarantee Scheme and also scoping out the need for a longer term Business Development Loan Scheme which would assist firms in investing for a post-Brexit environment. Development of these proposed responses is subject to resources being agreed as part of the annual budgetary process.

My Department’s agencies are continuing to actively supporting companies to prepare for Brexit using a number of different tools. Some examples include:

- Enterprise Ireland’s (EI) #PrepareforBrexit communications campaign featuring the ‘Brexit SME Scorecard’ was launched in March. The Scorecard is an interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars. EI also ran a series of events featuring expert speakers throughout the country to encourage companies to prepare for Brexit.

- EI has introduced a ‘Be Prepared Grant’ which offers up to €5,000 for exporting client companies to conduct further research and use external expertise to develop a Brexit Action Plan. EI is also delivering various supports to reduce supply-chain costs and drive efficiencies as a means of improving operating margins, thereby increasing competitiveness.

- The Local Enterprise Office Brexit-focused supports include the roll out of a national Lean for Micro initiative to improve competitiveness; mentoring and training initiatives; and awareness raising including workshops and cross-border business networking.

- InterTradeIreland is also undertaking a range of initiatives for SMEs trading across the border including the provision of advice and supports for capability building.

A lot that can be done within the existing EU State Aid Framework. We are confident that the measures currently in development will be State Aid compliant, and we are taking steps to ensure that we can use all options available under the State aid framework to provide support to companies impacted by Brexit.

Should issues arise that require an approach that does not fit within the existing rules, we will move quickly to advance this with the EU Commission.