Brendan Smith (Cavan-Monaghan, Fianna Fail)
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87. To ask the Minister for Jobs, Enterprise and Innovation if an analysis on a regional basis has been undertaken of the sectors that will be most adversely impacted by Brexit; and if she will make a statement on the matter. [30641/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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“Building Stronger Business” published late last year sets out the work underway in my Department to prepare for Brexit and highlights the challenges which Brexit will create in the regions.

My Department has undertaken a wide range of studies into the possible impacts of Brexit and a number of these have highlighted the potential regional effects associated with the UK’s departure from the EU.

The Copenhagen Economics study “Ireland and the Impact of Brexit: Strategic Implications for Ireland Arising from Changing EU-UK Trading Relations” published earlier this year identified the most vulnerable sectors in respect of Brexit .  

The study found that 5 sectors account for 90% of the possible economic impact. They are agrifood, pharma-chemicals, engineering and machinery, wholesale and retail and air transport.  Around 80% of the employment in these sectors is outside the Dublin region. As noted in the study, Brexit will therefore be felt more in rural parts of the country where these sectors dominate, particularly agrifood.

My Department also funded the InterTradeIreland/ ESR study Implications of Brexit for Trade between Ireland and Northern Ireland. The report assesses the particular impacts that the UK’s withdrawal from the EU could have on North-South trade in goods and models how the impact of Brexit could be especially acute in the border region.

Furthermore, my Department jointly with Deloitte, undertook a detailed engagement with 170 regionally-dispersed firms as part of our analysis into “Firm-Level Impacts of Brexit on Most Exposed Sectors”.  The study found that firms are likely to be affected differently both across different sectors and within individual sectors. Therefore, the report concludes that firm-level responses are likely to be the most effective means of preparing businesses for Brexit.

The Regional Action Plans for Jobs are central to my Department’s targeted approach to boosting regional employment. While progress has been very good, it is clear that we also have new challenges since the Regional Action Plan for Jobs process started, not least Brexit. In this context I have asked the Implementation Committees in each region to lead a process to Refresh and Refocus their Plans to 2020 which will focus on building each region’s own competitive advantage, develop areas that are already strong, examine vulnerabilities and take account of the challenges which Brexit presents.

To support the ambition, goals and implementation of the Regional Action Plans for Jobs, the Regional Enterprise Development Fund, worth €60 million, was launched in May 2017. The objective of the Fund is to support the development and implementation of collaborative and innovative projects to strengthen regional enterprise development potential.