Fiona O'Loughlin (Kildare South, Fianna Fail)
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120. To ask the Minister for Jobs, Enterprise and Innovation the contingencies and supports in place to safeguard Irish small and medium enterprises and export businesses from a hard Brexit scenario, including revision of State aid rules; and if she will make a statement on the matter. [8894/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department is carrying out extensive work to prepare for all Brexit eventualities. Informed by detailed research,  my Department is  putting in place a package of measures that will allow us to respond to the needs of businesses including the Brexit Loan Scheme which was announced in Budget 2018, and will provide affordable working capital financing to eligible businesses that are either currently impacted by Brexit or will be in the future.

The recent signing of the counter guarantee from the EIB group (through its InnovFin Guarantee) means that the €24 million exchequer funding announced in the 2018 Budget (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) can be leveraged to provide a fund of €300 million. The Brexit Loan Scheme will be open to businesses of fewer than 500 employees which can demonstrate that they are significantly exposed to the impact (or potential impact) of Brexit. They must be a viable business, doing business in Ireland, and they must have a business development strategy demonstrating that they plan to innovate or adapt in response to Brexit. My officials are also examining policy proposals for a newlonger-term Business Investment Loan Scheme to support businesses to invest strategically for a post-Brexit environmenttogether with a new Business Finance Advisory Hub service which would focus on business development.

In November 2017, the then Tánaiste met with Commissioner Vestager (who has responsibility for EU State aid policy).  An outcome from this meeting was the establishment of a Working Group comprising representatives from DG Competition, the Department of Business, Enterprise & Innovation, Enterprise Ireland and Department of Agriculture, Food and the Marine.  The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with State Aid rules.  The Working Group has met three times and in between these meetings, there has been engagement on specific issues in order to continue to progress matters.  Should issues arise that require an approach that does not fit within the existing State Aid rules, this will be raised as part of the Working Group discussions.

As one part of a suite of measures to mitigate against the effects of Brexit, a Rescue and Restructuring (R&R) Scheme notified to the Commission was approved in late November 2017. This scheme has been put in place as it is considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances as necessary.

Fiona O'Loughlin (Kildare South, Fianna Fail)
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121. To ask the Minister for Jobs, Enterprise and Innovation the number of businesses that have taken up Brexit business supports, such as the be prepared grants and Brexit readiness vouchers provided by Enterprise Ireland and InterTradeIreland. [8895/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The long-term response to Brexit is for companies to become more competitive, more innovative and to diversify their export footprint into more markets. I am confident that the agencies under my Department have the supports to enable companies to consolidate market share within the UK and also to become more resilient by broadening their sales to other international markets. Enterprise Ireland (EI) and the LEOs are actively supporting their clients to achieve this. My Department provided for additional monies 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.

Enterprise Ireland’s Be Prepared Grant offers SMEs a grant of up to €5,000 to assist them in preparing an action plan for economic shocks, such as Brexit. The grant can be used to help cover consultancy, travel and travel expenses associated with researching the direction of their action plan. Enterprise Ireland is committed to processing all applications for the grant within eighteen days. As of February 15^th2018, 84 have been approved, with 8 more in progress. Enterprise Ireland is actively promoting its supports, and is launching a series of Brexit Advisory Clinics this week. These clinics are designed to help companies plan and take immediate action to effectively mitigate the risks and avail of the opportunities that Brexit poses.

A key part of InterTrade Ireland’s Brexit strategy is the provision for a Brexit ‘Start to Plan’ readiness voucher scheme of €2,000, which enables SMEs to purchase specialist advice in areas such as customs, tax, tariff and non-tariff barriers, legal and labour mobility issues.  As of February 16^th, a total of 43 such vouchers have been approved, with a further 11 pending.

Fiona O'Loughlin (Kildare South, Fianna Fail)
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122. To ask the Minister for Jobs, Enterprise and Innovation the status of Brexit-related supports for enterprise and farming, including relaxation of State aid rules, European and Irish grant funding and in market supports in the EU26 for businesses seeking to increase trade. [8896/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department, principally through Enterprise Ireland and the LEOs, has continued to promote the importance of businesses preparing for Brexit, and has developed a range of supports to help them achieve this.

(EI) and the (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.

Specific programmes introduced during 2017 have included;

- An online ‘Brexit SME Scorecard’ to help all Irish businesses self-assess their exposure toBrexit.

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

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

- A new Eurozone Strategy to increase exports to Eurozone countries by 50% by 2020. This

- A new €5k “Be Prepared Grant”(for Enterprise Ireland clients) 

- Enterprise Ireland 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 sectors.

- In recent weeks, EI launched its new Market Discovery Fund to help more Irish companies accelerate their market diversification efforts.  

The Local Enterprise Office (LEOs) are the ‘first-stop-shop’ for advice and guidance, financial assistance and other supports to those who are interested in starting or growing their own business. The suite of LEO Brexit supports available to micro and small businesses through the 31 LEOs nationwide include:

- Access to the ‘Brexit SME Scorecard’ online tool where micro and smaller businesses can self-diagnose their readiness for Brexit;

- A ‘Technical Assistance for Micro-enterprises’ grant designed to support qualifying businesses to diversify into new markets, enabling companies to explore and develop new market opportunities;

- Rollout of ‘Lean for Micro’ nationwide which will make small businesses more efficient and competitive;

- A ‘LEO Innovation and Investment Fund’ pilot programme to support innovation in micro-enterprises and get them investor ready to scale their businesses;

- Tailored mentoring to address Brexit related business challenges;

- Targeted training on specific Brexit challenges, including financial aspects and capability building in innovation, competitiveness and opportunity diagnosis; and

- Continued information, advice and guidance across all 31 LEOs and regionally.

The additional Brexit supports on offer through the LEOs are focused on capability building, market diversification, driving increased competitiveness, and promoting innovation so that LEO client companies can better cope with the challenges arising on foot of Brexit and to explore any opportunities presented.

The Brexit Loan Scheme, which was announced in Budget 2018 and will be launched in March of this year, is a €300 million loan scheme offering working capital loans at interest rates of 4% or less to eligible Irish SMEs and small mid-caps of less than 500 employees. The scheme is 60% funded by my department, and the remaining 40% has been funded by the Department of Agriculture, Food and the Marine with the expectation that  at least 40% of the fund will be drawn down by food businesses.

On the State Aid aspects, In November 2017, the then Tánaiste met with Commissioner Vestager (who has responsibility for EU State aid policy).  An outcome from this meeting was the establishment of a Working Group comprising representatives from DG Competition, the Department of Business, Enterprise & Innovation, Enterprise Ireland and Department of Agriculture, Food and the Marine.  The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with State Aid rules.  The Working Group has met three times and in between these meetings, there has been engagement on specific issues in order to continue to progress matters.  Should issues arise that require an approach that does not fit within the existing State Aid rules, this will be raised as part of the Working Group discussions.

As one part of a suite of measures to mitigate against the effects of Brexit, a Rescue and Restructuring (R&R) Scheme notified to the Commission was approved in late November 2017. This scheme has been put in place as it is considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances as necessary. 

On the Trade aspects, Enterprise Ireland is working with client companies through a network of market and sector advisers from 10 offices located throughout Ireland and 33 international offices across the globe. Along with additional staffing, 2017 also saw an enhanced programme of over 145 international trade events to target opportunities on a sectoral basis.

Enterprise Ireland’s 2017-2020 Strategy aims to increase the diversification of client exports into new markets, with two-thirds of exports going beyond the UK.

On the 15th May 2017, Enterprise Ireland launched a new Eurozone Strategy to assist Irish exporters increase exports in Eurozone countries by 50%, from €4 billion to €6 billion by 2020. This strategy will be accompanied by a new ‘Irish Advantage’ communications campaign which will target Eurozone buyers to buy Irish innovation in key Brexit impacted sectors such as med-tech and engineering.

The diversification strategy is focused on geographical markets, and on diversifying into new market segments. The activities of Enterprise Ireland’s overseas network are supported by the Market Research Centre and Strategic Marketing Unit based in Dublin along with a range of financial and capability developments supports aimed at helping client companies to achieve this growth in overseas markets.

In relation to Brexit related supports for farming that question would be best answered by my colleague Minister for Agriculture, Food and the Marine.