Written answers

Thursday, 28 February 2019

Department of Jobs, Enterprise and Innovation

State Aid

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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127. To ask the Minister for Jobs, Enterprise and Innovation if the recent state aid approval by the EU Commission for a company (details supplied) was within existing state rules and in line with the thresholds set out in EU Regulation No. 1407/2013. [10175/19]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The recent EU Commission approval for state aid to Carbery Food Ingredients Ltd. is individual, notifiable aid measure in the form of a direct grant for an investment project covering the processing and marketing of agricultural products (milk).

The investment is in line with State Aid rules and meets with the rural development objectives including fostering the competitiveness of agriculture and will ensure Carbery continues to guarantee a market outlet for circa. 1260 farmer suppliers and employment to 250 people in the West Cork region.

This aid measure was designed in accordance with the Guidelines for State aid in the Agricultural and Forestry Sectors and therefore is not required to comply with the thresholds of the De Minimis Regulation (EU) No 1407/2013.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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128. To ask the Minister for Jobs, Enterprise and Innovation if she has submitted a request or is preparing to submit a request at EU level to revise state aid rules as set out in regulation EU Regulation No. 1407/2013 to protect exposed enterprises and exporters from a potential Brexit; the status of progress being made at EU level to increase current state aid thresholds to support enterprises here in the event of a hard no-deal Brexit; and if she will make a statement on the matter. [10176/19]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department has been working closely with the Commission and DG Competition since November 2017 through the Irish/EU Technical Working Group on State Aid. The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with State Aid rules. Much has been achieved by this Working Group. It has examined and explored a range of opportunities within State Aid rules including the development of the Future Growth Loan Scheme under GBER rules, the expansion of Ireland’s Rescue and Restructuring Scheme to include Temporary liquidity aid and the Group is currently working closely with DG Agri to explore the range of opportunities under the Agriculture and Forestry State aid guidelines. It has looked at regionally important, exposed clients and their building resilience in their response to Brexit by using environmental and innovation aid.

On 24th January 2019, I met with the European Commissioner for Competition, Margrethe Vestager. The focus of the meeting centered around the severe challenges that Irish businesses will face when the UK leaves the EU and the need for appropriate and timely State supports. It was agreed that Irish officials will continue to work closely with the Commissioner's team in addressing any State aid issues that may arise to ensure a rapid and appropriate response as the ultimate shape of Brexit and its firm-level implications become known. 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 Group discussions. The Commissioner emphasised that the Commission stands ready to act urgently in mitigation against the impacts of Brexit on Irish firms.

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