Written answers

Wednesday, 7 February 2018

Department of Jobs, Enterprise and Innovation

Brexit Data

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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161. To ask the Minister for Jobs, Enterprise and Innovation if her Department has commissioned economic or regulatory impact assessments of the risks to sectors under the purview of her Department following the decision of the UK to exit the EU and the various types of future relationships that might result; if she will provide a copy of such studies conducted; the persons or body commissioned to conduct this research; the cost of same; and if she will make a statement on the matter. [6298/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Contingency planning at both a domestic and an EU level is focused on three areas: preparing for a no-deal scenario or so-called “disorderly Brexit”; preparing for a transition period based on the “status quo”; and preparing for the future EU-UK relationship.

While the outcome of the December European Council and the move on to Phase 2 has lessened the likelihood of a disorderly Brexit, very detailed work on a no-deal or worst-case-scenario is advancing intensively through the cross-Departmental coordination structures chaired by the Department for Foreign Affairs and Trade. This work is also informed by ongoing stakeholder engagement. Separately, a new preparedness unit in the Commission is considering EU-level responses.

All this work provides a baseline scenario for the policies and sectors impacted, which can then be adapted as appropriate in light of developments in the EU-UK negotiations. In this regard, it is welcome that the direction of travel is now firmly towards achieving a “status quo” transition period. Agreement on a “status quo” transition will provide certainty to individuals and businesses while also aiming to avoid any cliff edge effects between the UK leaving the EU and a future relationship agreement coming into force. The period will provide time for businesses and citizenship to prepare for the UK’s withdrawal from the EU based on the outcome of the negotiations on the framework for the EU’s future relationship with the UK. In this respect, the expectation is that the European Council will adopt additional Guidelines at its meeting on 22-23 March 2018 on the framework for the future EU-UK relationship. These guidelines – as well as further clarity on the UK position, which has been sought by the European Council – will provide a clearer picture of the direction of travel in the negotiations.

The Government’s contingency planning continues to be firmly grounded in the extensive work and outreach that has already been undertaken by individual Departments and agencies, as well as by stakeholder organisations, academics and others. Much of this is in the public domain.

My Department is conducting a number of research projects to build an understanding of the possible implications of Brexit on Ireland for enterprise and our trading relations. These studies will provide an evidence base to inform Ireland’s policy positions as part of the wider negotiation on the UK’s future relationship with the EU and further inform our domestic policy response to Brexit. The details of the Brexit related research undertaken by my department is as follows:

Title
Summary
Cost
Research by
Publication
Strategic Implications for Ireland arising from changing EU-UK Trading patterns.Profile trade and investment to highlight dependence at sectoral level; Quantify impact of various scenarios on trade and investment; Develop policy options for Ireland – negotiations and enterprise (mitigation) policies.€174,000 (Ex. VAT)Copenhagen EconomicsDue Q1 2018
Sectoral implications arising from Brexit: Most exposed sectorsThis research examines the firm level implications of the UK being outside of the European Single Market and Customs Union for Ireland’s most exposed enterprise sectors.(Note confidential firm level detail will not be published, an aggregate synopsis is being prepared).€69,950 (Ex. VAT)DBEI research and DeloitteDue Q2 2018
Import Content of Irish Exports and Implications of BrexitThis study examines the Import Content of Irish Exports, Implications of Brexit for Inputs and Competitiveness and the extent to which Irish firms source intermediate inputs from the UK. This research will provide empirical evidence on the import content of Irish firms’ exports, how firms may be exposed to changes in the trading environment after Brexit and the impact of Brexit on inputs, and competitiveness.€40,000 (Ex. VAT)Economic and Social Research InstituteDue Q2 2018
The Potential Impact of WTO Tariffs and other key relevant issues on Cross-Border TradePhase (1) Effect of WTO-level tariffs and other non-tariff barriers on cross-border trade in manufactured products. Phase (2) Cross-border trade at firm level and integration of supply chains. Phase (3) Wider trade issues including trends and developments relevant to trade in Services.€90,000*(Inc. VAT) Economic and Social Research InstitutePhase 1 published June, 2017Phase 2 due Q1 2018Phase 3 due Q 3 2018
Brexit -the View of Irish SMEs (Survey)This project is a survey of over 500 SME business owners and is a follow-on of a survey completed at the beginning of 2017, and published in May.€25,000 (Ex. VAT)Behaviours and AttitudesPublished 22 January 2018
Brexit -the View of Irish SMEs (Survey)This project consists of a survey of over 1000 SME business owners and structured engagement.€52,250 (Ex. VAT)Behaviours and AttitudesPublished 8 May 2017

*The project is managed by InterTrade Ireland and co-funded by the Department of Business, Enterprise and Innovation and the Northern Ireland Department for the Economy. Figure shown represents the full amount.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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162. To ask the Minister for Jobs, Enterprise and Innovation the additional budget for 2018 or other years, provided to her Department and all agencies and bodies within her remit to plan or prepare for Brexit; the number of additional staff that have been recruited to work on this policy area in each body, agency and her Department; the number of dedicated staff planning and working on Brexit matters in each; and if she will make a statement on the matter. [6315/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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An additional €163m in funding for the Department’s Vote has been secured since the UK Vote on Brexit in June, 2016. 

The additional funding is broken down between €157m in capital funding and €6m in Brexit specific Pay allocation. The additional capital for use by the Enterprise Agencies (includes. IDA, EI, the LEOs and SFI) will support our regional jobs plans, our proactive response to “Brexit” and our innovation system.

Separately, in late 2017 the Department also provided €14m in support of the new Brexit Loan Scheme as announced on Budget Day 2018. This funding is being complemented by a further €9m from the Department of Agriculture, Food and the Marine to support access to finance issues for companies directly impacted by Brexit. This Government contribution of €23 million is leveraging private funding to bring the total Brexit Loan Fund available to such firms to €300m, and this fund will be managed by the Strategic Banking Corporation of Ireland.

Additional Pay Allocation

The €6m in Pay mentioned above, was allocated through the 2017 and 2018 Budgets. Such Pay monies are managed within the overall Pay budget for the Department, its Offices and Agencies.

In “Budget 2017” an additional €3m in Pay allocation was provided to support the recruitment of c.  50+ staff across the Department, Enterprise Ireland, IDA, Science Foundation Ireland and the Health and Safety Authority to assist in Brexit response. This 2017 extra €3m in Pay was distributed as follows:

- Department+€250k

- Enterprise Ireland+€1.7m

- IDA Ireland+€750k

- Science Foundation Ireland+€150k

- Health & Safety Authority+€150k

In Budget 2018 a further additional €3m in Pay was provided to the same bodies to support recruitment and assist in the Brexit response, and will bring the total of additional “Brexit” specific staff to c. 100 extra. The allocation was distributed as follows:

- Department+€200k

- Enterprise Ireland+€1.3m

- IDA Ireland+€700k

- Science Foundation Ireland+€400k

- Health & Safety Authority+€400k

In respect of specific numbers of additional staff that have been recruited specifically for the purpose of responding to Brexit, I have set out this information below in respect of each of the bodies mentioned above that have received additional pay allocation. It is important to note however that the work of very many Business Units within my Department and its Agencies are impacted by Brexit and are working on responding to it despite not being recruited specifically for this purpose.

Department

The dedicated Brexit Unit which was established in 2016 is led at Assistant Secretary level within the EU Affairs and Trade Policy Division, to co-ordinate and represent the Departmental and Agencies response to Brexit and to support me in my position at the Cabinet Committee dealing with Brexit. The designated official, at Assistant Secretary level, is now supported by a staff compliment of seven (one Principal Officer, three Assistant Principals, two Higher Executive Officers and one Clerical Officer).

Staff across all relevant Units are examining the Brexit implications and impacts for their policy areas as well as working with the Brexit Unit and the agencies in developing appropriate domestic responses and helping to inform the approach to the negotiations. We are prioritising the Brexit challenges and will actively keep the staffing requirements under review through workforce planning.

Enterprise Ireland

The additional €1.7 million allocated to Enterprise Ireland in 2017 assisted in the recruitment of an additional 39 Brexit specific posts. 36 of these posts have been filled to date and 3 are currently under active recruitment.  

The €1.3 million allocated to Enterprise Ireland in Budget 2018 is being allocated to recruit additional Brexit related staff. This will enable EI to recruit approximately 20 additional staff during 2018.

IDA Ireland

In 2017 the IDA were allocated €750,000 for an additional ten posts as a result of Brexit; and after a rigorous recruitment process have filled all of these. The Agency has been allocated an additional €700,000 for 2018 to further reinforce its staffing levels and response to Brexit.

Science Foundation Ireland (SFI)

SFI were allocated an additional €150,000 in 2017 and have filled three posts which have Brexit related activities attached to their roles.  These successful applicants commenced their positions in November and December (2017) and in January (2018).SFI have been allocated an additional €400,000 for 2018 to recruit additional resources, and are currently in the process of recruiting for the position of Head of International and this individual will be leading SFI’s many Brexit related activities.

Health and Safety Authority

My Department provided an additional €150,000 to the HSA in respect of Brexit related pay funding in 2017. A recruitment campaign is ongoing to fill three posts (Grade III Inspector, Socio-Economist and Grade II Brexit related Accreditation Officer).

My Department has provided a further €400,000 to the HSA for the recruitment of additional staff in Brexit related posts in 2018. While a number of HSA staff currently carry out Brexit related tasks in addition to their other roles, further staff will be allocated to Brexit related duties in 2018 as such staff are recruited.

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