Micheál Martin (Cork South Central, Fianna Fail)
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154. To ask the Minister for Jobs, Enterprise and Innovation if her attention has been drawn to the percentage of companies that export to Britain that will be Brexit ready by 29 March 2019. [52122/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Enterprise Ireland (EI) and the Local Enterprise Offices (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 to become more resilient by broadening their sales to other international markets.

The UK is the leading export destination for Enterprise Ireland supported companies and is the first export destination for many companies. Despite this, Enterprise Ireland supported companies are increasingly diversifying their global footprint beyond the UK. The proportion of our exports going to the UK has reduced by 10% over the last ten years, reflecting the success that Irish companies are having in substantially increasing and broadening their exports to other international markets.

Enterprise Ireland offers a range of activities and supports for client companies throughout the country to innovate and remain competitive in international markets and is working with its clients to ensure they are resilient to economic shocks, such as Brexit.

As part of Enterprise Ireland’s response to Brexit, the agency launched the following two supports to drive Brexit awareness and preparedness:

- Brexit Scorecard: This interactive online platform can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars. Based on answers supplied by the user, the Scorecard generates an immediate report which contains suggested actions and resources, and information on events for companies to attend, to prepare for Brexit.

- Be Prepared Grant: This 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. For example, this might involve investigating the feasibility of diversifying into new markets and market segments; investment in innovation; improvement in operational competitiveness; and/or enhancement of strategic financial capability.

In terms of effectiveness of the supports, a recent survey of 2,400 Enterprise Ireland clients found that 85% of them are taking Brexit-related actions. This is a positive indication that companies are undertaking Brexit preparedness actions.

Working closely with Enterprise Ireland’s global network, the agency will continue to support its client companies plan, innovate, compete and diversify their exports in order to support companies navigate the challenges and opportunities posed by Brexit.   In this regard, Enterprise Ireland’s new customs training and the planned LEOs customs training will help to demystify customs procedures for both exporting and importing companies.  In addition, Enterprise Ireland and Department of Foreign Affairs and Trade regional advisory clinics have been held around the country to assist companies prepare for Brexit.

Micheál Martin (Cork South Central, Fianna Fail)
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155. To ask the Minister for Jobs, Enterprise and Innovation the contingency plans for companies if sterling falls by 3% or more. [52123/18]

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 has been putting in place a package of measures that will allow us to respond to the needs of businesses affected by Brexit.

A notified Rescue and Restructuring (R&R) scheme was approved by the Commission in late November 2017.  Under the 10 million euro scheme, which will run until 2020, Enterprise Ireland can provide restructuring support to SMEs in severe financial difficulties. 

The R&R scheme was extended in May 2018 to include temporary restructuring aid for enterprises facing acute liquidity needs.  This provides a further 10 million euro of State support and is in addition to the original 10 million euro under the R&R scheme.   Restructuring aid under this scheme is in the form of direct grants or equity support.   It is important to have stabilisation measures such as these schemes in place in the event that they become needed. However, there is  whole suite of supports in place that enterprises can avail of to mitigate the impact of Brexit uncertainty.  

The Brexit Loan Scheme, launched in March of this year and operated by the SBCI, offers affordable working capital to eligible SMEs that are either currently impacted by Brexit or which will be in the future.  Funding granted under the scheme must be used to innovate, change or adapt to meet the challenges posed by Brexit.  The Future Growth Loan Scheme announced in Budget 2019, will provide loans for terms of up to 10 years for eligible businesses to invest in a post-Brexit environment.

To assist businesses in responding to Brexit, 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.

Local Enterprise Office funding has been increased by 22%, 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 issues.

Advisory supports in relation to business planning, such as those provided by the Local Enterprise Offices and Enterprise Ireland, will be particularly important in assisting viable-but-vulnerable SMEs that may be adversely affected due to Brexit.  These supports will help raise awareness of both private market financial supports and existing State supports.

As part of awareness-raising activities, EI has been rolling out regional Brexit Advisory clinics throughout the year. To date, clinics have been held in Letterkenny, Tralee, Portlaoise, Claremorris, Cootehill, Charleville, Dublin, Galway, Dundalk, Waterford and most recently Limerick. A Brexit two-day external consultancy support is also being rolled out to individual clients to help them develop a detailed sustainable growth plan.  DBEI and its agencies have also participated in the Government’s “Getting Ireland Brexit Ready” events. These events have so far taken place in Cork, Galway, Monaghan, Dublin, Limerick and Donegal.

With regard to currency management specifically, my Department has published a guide for  SMEs on currency risk management, which has been developed in collaboration with Pricewaterhouse Coopers and is available on my Department's website.