Written answers

Thursday, 26 April 2018

Department of Jobs, Enterprise and Innovation

Brexit Supports

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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120. To ask the Minister for Jobs, Enterprise and Innovation if is it technically possible to get approval at EU level to support companies through an adjustment period caused by Brexit by adapting the European Globalisation Adjustment Fund to ensure exposed companies can avail of grant aid to deal with the economic fallout of Brexit. [18533/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The European Globalisation Adjustment Fund does not come under the remit of my Department but that of the Department of Education and Skills.  Therefore, any adjustments to the strict qualifying criteria fall to that Department to address.

However, extensive work has been ongoing in my Department to prepare for all Brexit eventualities. This includes detailed research on the implications of Brexit for businesses, and the development of supports to help ensure that businesses are prepared for potential difficulties arising because of the UK’s decision to leave the EU.

The Brexit Loan Scheme, launched on 28 March 2018, provides affordable financing to eligible Irish businesses currently impacted by Brexit or which will be in the future.  The 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.   

My officials are also examining policy proposals for a new longer-term Business Investment Loan Scheme to support businesses to invest strategically for a post-Brexit environment and a new Business Finance Advisory Hub service which would focus on business development.  

The agencies of my Department are also fully engaged in preparing for Brexit. Enterprise Ireland’s (EI) #PrepareforBrexit communications campaign, featuring the ‘Brexit SME Scorecard’, was launched last March.  The Scorecard is an interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit. 

A Technical Working Group on State Aid comprising representatives from DG Competition, DBEI, EI and DAFM was established in November 2017.  The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with current applicable State Aid rules.  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. 

A notified Rescue and Restructuring (R&R) scheme was approved by the Commission 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.  Under the scheme, which will run until 2020, Enterprise Ireland can provide restructuring support to SMEs in severe financial difficulties. 

As part of the deliberations of the Working Group on State Aid, it was agreed that my officials should extend the R&R scheme to include temporary restructuring support for those SMEs who experience acute liquidity needs.  This extension, which has been notified to the Commission, will be a welcome addition to our suite of supports for businesses impacted by Brexit.  The temporary restructuring support, together with the rescue aid and the capital support under the Brexit Loan scheme should provide support to those SMEs who require stabilisation during transition.

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