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

284. To ask the Minister for Jobs, Enterprise and Innovation further to the UK Government's decision to defer the House of Commons vote on the European Commission's draft withdrawal agreement with the UK and the President of the European Council's confirmation that preparedness for a no-deal scenario is being discussed, if her Department submitted a request formally to the Brexit preparedness group under the European Commission's task force on Article 50 negotiations with the United Kingdom seeking mitigation funding for Irish businesses in order to safeguard enterprises and exporting companies from a no-deal hard Brexit and the UK becoming a third country; and when such proposals were formally submitted. [53660/18]

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

Any Brexit scenario will mean considerable change and impact for Ireland and extensive and detailed Brexit preparedness and contingency work is being taken forward by my Department, working closely with the Department of the Taoiseach, the Department of Foreign Affairs and Trade and across all Government Departments and Agencies.

The Government focus continues to be on ensuring an orderly UK withdrawal through ratification of the Withdrawal Agreement endorsed by the European Council on 25 November and agreed with the British Government.

However, it is only prudent for the Government to prepare for all scenarios. My Department continues to plan and prepare for both the ‘central case’ scenario and a disorderly Brexit scenario and updated Departmental Action Plans have evolved and developed based on the changing situation. It is not possible to eliminate all risk but the Government is working at home and at EU level to mitigate damage to the greatest extent possible.

The underlying strength and resilience of our economy is critical in ensuring that Ireland is in the best possible position to respond to the challenges that Brexit will bring.

Given that in a number of key areas for Ireland, the appropriate response and mitigation will be at the EU level, we are continuing to engage actively with the Commission on areas of priority for Ireland, including through a series of expert level meetings with the Commission and the EU27 on key issues on a weekly basis until mid-January.

The EU Commission acknowledged the particular impact of Brexit on Ireland and Irish business in its contingency planning communication of 13 November. This communication also outlined some of the EU’s plans for a no deal scenario, including in the areas of financial services, citizens’ rights, air transport, road transport, and customs / SPS requirements. This has further informed our own domestic planning.

Ireland is also working closely with the EU and fellow Member States to discuss and progress areas of key concern, including facilitating the use of the UK as a landbridge post Brexit.

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 a number of schemes which have been developed to mitigate against the effects of Brexit. Following a meeting at the end of 2017 between the then Tánaiste and Commissioner Vestager, the European Commissioner for Competition who has responsibility for EU State aid policy, a technical working group on State aid was established comprising representatives from DG Competition, my Department, Enterprise Ireland and the Department of Agriculture, Food and the Marine. The objective of the Group is to scope and design supports for enterprises within existing State aid rules.

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. This is operated within State aid rules under the de Minimis regulation.

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 is expected that this scheme will be operational in Q1 2019.

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 Technical Working Group discussions.

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

285. To ask the Minister for Jobs, Enterprise and Innovation further to the UK Government's decision to defer the House of Commons vote on the European Commission's draft withdrawal agreement with the UK and the President of the European Council's confirmation that preparedness for a no-deal scenario is being discussed, if she will request via the working group established with Directorate-General for Competition for changes to be made to state aid thresholds at EU level in order to protect Irish enterprises, exporting companies and related jobs from a hard no-deal Brexit WTO scenario; and if not, the reason therefore. [53661/18]

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

The Government remains focused on ensuring an orderly UK withdrawal through ratification of the Withdrawal Agreement endorsed by the European Council on 25 November and agreed with the British Government.

However, it is only prudent for the Government to prepare for all scenarios.

Officials from my Department are part of the 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 Brexit related issues arise that require an approach that does not fit within the existing State Aid rules, this will be raised as part of the Technical Working Group discussions.

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

286. To ask the Minister for Jobs, Enterprise and Innovation further to the UK Government’s decision to defer the House of Commons vote on the European Commission's draft withdrawal agreement with the UK and the President of the European Council's confirmation that preparedness for a no-deal scenario is being discussed, if her Department is preparing or considering requesting that the state aid ceiling under Regulation (EU) No. 1407/2013 be temporally adapted as a policy response to protect Irish companies and exporting businesses exposed to a no-deal hard Brexit and the UK becoming a third country; when such proposals will be formally submitted; if her Department and other Departments have had discussions with the European Commission regarding adapting Regulation (EU) No. 1407/2013 to date or via the working group established with the Directorate General for Competition; and if not, the reason therefor. [53662/18]

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

The Government remains focused on ensuring an orderly UK withdrawal through ratification of the Withdrawal Agreement endorsed by the European Council on 25 November and agreed with the British Government. However, it is only prudent for the Government to prepare for all scenarios and my Department is carrying out extensive work in preparation.

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 a number of schemes which have been developed to mitigate against the effects of Brexit. Following a meeting at the end of 2017 between the then Tánaiste and Commissioner Vestager, the European Commissioner for Competition who has responsibility for EU State aid policy, a technical working group on State aid was established comprising 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 supports for enterprises within existing State aid rules.

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. This is operated within State aid rules under the de Minimis regulation.

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 is expected that this scheme will be operational in Q1 2019.

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 Technical Working Group discussions.

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

287. To ask the Minister for Jobs, Enterprise and Innovation the preparations under way for a hard no-deal Brexit; the schemes being operationalised with other Departments; when these will be ready to be deployed; when she will publish such plans; and if she will make a statement on the matter. [53663/18]

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

As the Deputy will be aware, extensive and detailed Brexit preparedness and contingency work is underway across all Government Departments and State agencies.

In a number of key areas for Ireland, the appropriate response and mitigation will be at the EU level. The EU Commission acknowledged the particular impact of Brexit on Ireland and Irish business in its contingency planning communication of 13 November. In tandem with this, many of the potential consequences of a “no deal” Brexit have already been set out in a series of European Commission notices dealing with key sectors. Firms should look at these notices with their representative bodies to better understand the possible impacts.

My Department has also participated in relevant expert level meetings organised by the European Commission with participation by the EU27 Member States in November/December 2018 on key issues.

Government's focus is to plan for an orderly Brexit based on the Withdrawal Agreement which provides for the backstop and a future partnership which is ambitious and wide ranging. Given the current uncertainty, Government will continue to work on Brexit preparedness for the central case scenario but is now giving immediate priority to preparations for a disorderly Brexit. My Department and its agencies, are working on a cross-government basis to help prepare for all Brexit scenarios

The Government has already taken actions to get Ireland Brexit ready, with dedicated measures announced in Budgets 2017, 2018 and 2019.

My Department, in particular, has developed a package of measures that allow us to respond to the needs of businesses affected by Brexit-related uncertainty, including in a worst-case scenario. Over the past two years, we have substantially increased the resources available to the Enterprise Agencies within my Department's remit and we have put in place a number of schemes to assist firms address the challenges posed by Brexit. Some of the main supports I have put in place include:

- Enterprise Ireland’s ‘Be Prepared Grant’ which offers up to €5,000 in funding to support exporting client companies to prepare a Brexit Action Plan.

- Enterprise Ireland’s ‘Act On’ Initiative to help Brexit-exposed client companies to strengthen their capabilities in key areas of Financial and Currency Management, Strategic Sourcing, Customs and Logistics. This is delivered at no cost to the company.

- The Local Enterprise Office’s (LEOs) ‘Lean for Micro Programme’ which offers clients the opportunity to incorporate Lean business principles to improve performance and effectiveness.

- The LEO’s ‘Technical Assistance for Micro Enterprises’, to support businesses to diversify into new markets, enabling them to develop new market opportunities outside of the EU.

- InterTrade Ireland’s ‘Start to Plan’ vouchers – worth €2,250 - to enable SMEs to purchase specialist advice on customs, tax, tariff and non-tariff barriers, legal and labour mobility issues, specifically in relation to Brexit.

- On 28 March this year, I, along with Minister Donohoe and Minister Creed, launched the €300 million Brexit Loan Scheme with the European Investment Bank Group and the SBCI. This scheme provides affordable working capital to eligible businesses.

In allocating my Department’s budget for 2019, I stepped up our response to Brexit, basing my decisions on both an extensive body of research and direct feedback from the sector.

In addition to the above measures, the longer-term Future Growth Loan Scheme will help businesses invest strategically in a post-Brexit environment and will be available early in 2019. The scheme, which isjointly funded by my Department and the Department of Agriculture, Food and the Marine provides up to €300m to support capital investment by business and offers loan terms of 8 to 10 years.

In the 2019 budget I have allocated €8m extra for Brexit staffing & supports across enterprise and regulatory agencies in order to prepare Irish businesses for Brexit; the roll-out of customs training through Local Enterprise Offices and Enterprise Ireland; and, €1m additional funding for InterTrade Ireland.

At the beginning of this month, Enterprise Ireland, working with the Revenue Commissioners, launched an online “Customs Insights” course designed for Irish businesses dealing with customs for the first time. The course will give learners a firm understanding of customs, the implications for their business and the options from Revenue that are available to make the customs process more efficient.

Notwithstanding the uncertainty of Brexit, there are several areas where firms can take immediate action to prepare. I would ask firms now to take heed and to take action. My advice to businesses is to:

- Be alert to your supply chains and any possible disruption that might arise.

- Be alert to the potential for new customs procedures that might be required and the possible application of new tariffs and quotas in certain areas

- Be alert to certification, standards and licensing issues.

- Be alert to currency fluctuations.

- Be alert to the State supports and loans schemes available from Government, including through Enterprise Ireland, the LEOs and InterTrade Ireland.

The European Commission and Government have also made known their intention imminently to set out additional information relating to Brexit contingency planning for a no-deal scenario, including as regards necessary legislation that will be required.