Written answers

Tuesday, 6 February 2018

Department of Jobs, Enterprise and Innovation

Brexit Issues

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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299. To ask the Minister for Jobs, Enterprise and Innovation the specific programmes that will be introduced to assist enterprises and businesses that are heavily or totally dependent on the British market for exports in view of the challenges that will arise from Brexit; and if she will make a statement on the matter. [5985/18]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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300. To ask the Minister for Jobs, Enterprise and Innovation the initiatives undertaken by her Department and the State's industrial promotion agencies to support small-scale enterprises prepare for the challenges that will arise due to Brexit; and if she will make a statement on the matter. [5986/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 299 and 300 together.

Enterprise Ireland (EI) and the Local Enterprise Offices (LEOs) are the primary providers of supports to assist enterprises within the indigenous sector that are facing challenges arising from Brexit. They are working vigorously to enable companies to consolidate market share within the UK and also to become more resilient by broadening their sales to other international markets. My Department provided for additional capital funding in 2017 to enable EI and the LEOs to ramp up its supports in light of Brexit to drive improvements in:

- productivity,

- innovation,

- management capability and  leadership skills,

and really driving the ambition of managers to look to other markets around the world.

Maintaining and growing our market share in the UK is still a priority, as there continues to be significant growth opportunities for our exporting base in the UK. Irish companies will have to adjust their competitive proposition for the UK market on the basis of higher productivity, cost savings, innovation/new products and customer service as well as finding new customers and markets.

It is also hugely important to intensify export growth to other markets, to reduce reliance on the UK, re-orienting companies towards the Eurozone, North America, Canada, Asia and the Middle-East, and these markets will also demand a strong competitive proposition. EI is driving competitiveness through a suite of supports that helps clients reduce supply-chain costs and increase efficiencies as a means of improving operating margins, building market share and creating new market opportunities.

In 2017 my Department provided for an increased current expenditure pay provision of €1.7m to enable EI recruit 39 Brexit specific posts to work at home and across the globe in EI’s 33 offices abroad. My Department provided EI with a further €1.3 million in Budget 2018 to recruit approximately 18 additional staff.

Specific programmes introduced during 2017 have included;

- A ‘Prepare for Brexit’  online portal and communications campaign.

- An enhanced programme of  trade and investment missions and other trade promotional events.

- An online ‘Brexit SME Scorecard’ to help all Irish businesses self-assess their exposure to Brexit. The Scorecard generates a report on weak areas and suggests some  initial next steps. 1,909 companies had used the Scorecard by mid-December of 2017.

- A new Eurozone Strategy to increase exports to Eurozone countries by 50% by 2020. This strategy aims  to support companies to broaden their export footprint beyond the UK, and  thereby improve economic resilience.

- A new €5k “Be Prepared Grant” that supports the costs of SME clients in preparing a plan to mitigate  risks and optimise opportunities arising from Brexit.

- EI is hosting “Prepare for Brexit” breakfast roadshows nationally to engage with companies.

- Three new strategic  communications campaigns launched to target separate elements of Brexit preparedness. ‘Global Ambition’ is aimed at encouraging companies to export; ‘PrepareforBrexit’ highlights actions required by companies to  improve resilience; and a new ‘Irish Advantage’ campaign will target Eurozone buyers to buy Irish innovation in key Brexit impacted sectors.

This Brexit focus has continued into the 2018 plan. In recent weeks, EI launched its new Market Discovery Fund to help more Irish companies accelerate their market diversification efforts.

In summary, I am committed to support the agencies under my remit to continue to respond to the needs of companies affected by Brexit to protect jobs and build resilience across the country.

The challenge, and the opportunity, is to prime businesses with potential to become global players, resilient to challenges posed by Brexit and other market regulation, through superior quality products and services, management, innovation and marketing capability.

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