Written answers

Thursday, 29 November 2018

Department of Jobs, Enterprise and Innovation

European Globalisation Fund

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

130. To ask the Minister for Jobs, Enterprise and Innovation if she has corresponded with the Minister for Education and Skills regarding whether he has prepared or has completed a formal application to the EU Commission seeking an adaptation to the European globalisation adjustment fund to enable it to ensure exposed enterprises can avail of grant aid due to the economic fallout of Brexit. [50042/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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.

My Department and its agencies are providing extensive supports to ensure that businesses are prepared for Brexit. These supports aim to assist businesses in identifying key risk areas and the practical preparatory actions to be taken over the coming months.

A number of schemes have been developed to mitigate against the effects of Brexit. In late November 2017 a Rescue and Restructuring (R&R) Scheme was approved by the EU Commission. 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.

The Brexit Loan Scheme was launched in April 2018 and provides affordable working capital financing to eligible businesses that are either currently impacted by Brexit or will be in the future, to help them innovate, change or adapt to mitigate their Brexit challenge.

In May 2018, the Rescue and Restructuring scheme was extended to include temporary restructuring aid for enterprises experiencing acute liquidity needs. The aid is granted in the form of loans repayable over a period of 18 months. Together with the Brexit Loan Scheme, this temporary restructuring aid will provide valuable stabilisation to businesses as they respond to the immediate and long-term impacts of the UK’s decision to leave the EU.

The Future Growth Loan Scheme was announced in Budget 2019. The scheme will be available to eligible Irish businesses, including those in the primary agriculture and seafood sectors, to support strategic, long-term investment in a post-Brexit environment. It will provide low cost loans for terms of between 8-10 years, which is not readily available on the market. It is expected that this scheme will be operational in Q1 2019.

Local Enterprise Office funding has been increased and this increase is being used to assist micro-enterprises in becoming more competitive and better able to cope with the changing environment in which they are operating. The suite of LEO Brexit supports includes tailored mentoring to address Brexit-related business challenges and targeted training on specific Brexit challenges.

Enterprise Ireland has established a Prepare for Brexit online portal and communications campaign, as well as an online "Brexit SME Scorecard" to help Irish businesses self-assess their exposure to Brexit and a "Be Prepared Grant" to support SME clients in planning to mitigate risks arising from Brexit. It has also launched a new Eurozone Strategy to help SMEs broaden their export footprint beyond the UK.

InterTrade Ireland's Brexit advisory service was established in May 2017 to provide a focal point for SMEs working to navigate the changes in cross-Border trading relationships brought about by Brexit negotiations.

As part of awareness-raising activities, EI has rolled out regional Brexit Advisory clinics throughout the year. My Department and its agencies have also participated in the Getting Ireland Brexit Ready roadshow to inform businesses of supports available to them to prepare for Brexit.

Officials from my Department are point of a Technical Working Group on State aid which also comprises representatives from DG Competition, Enterprise Ireland and the 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. 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.

Comments

No comments

Log in or join to post a public comment.