Thursday, 11 July 2019
Department of Jobs, Enterprise and Innovation
415. To ask the Minister for Jobs, Enterprise and Innovation the number of applicants and participants in Brexit schemes and supports provided by her Department or agencies under her remit in tabular form; and the amount allocated and expended to each such scheme in each year since being established. [31103/19]
As the nature of the UK's departure from the EU still remains to be determined, Brexit continues to represent a significant challenge for businesses in Ireland, one which cannot be underestimated. That is why my Department started developing supports for businesses from the time when Brexit first became a possibility.
My Department and its agencies have put in place extensive supports, schemes and advisory resources to ensure that to ensure that businesses around the country are prepared for Brexit. While we cannot yet know the form that Brexit will take, these measures aim to assist businesses in identifying and managing key risk areas and develop practical preparatory actions regardless of the circumstances of the UK’s withdrawal from the EU.
My Department’s total exchequer allocation increased by 9.1% year on year, up from €871m to €950.2m. This is made up of a record €620m in capital and €330.2m in current funding, which includes an increase of €65m in capital – up 11.7% on last year’s allocation of €555m; and, an increase of €14.2m in current – almost 4.5% more than our 2018 allocation of €316m. I also provided extra staff for the regulatory bodies of my Department to ensure they are properly resourced to address the additional demands that Brexit will create.
I allocated an extra €5m to the 31 Local Enterprise Offices [LEOs], up 22% on 2018. The LEOs are the first-stop-shop for anyone seeking guidance and support on starting or growing their business. The LEOs are there to support businesses in preparing for Brexit, to ensure that businesses are informed and have plans in place to manage the new trading relationships on the island and with the UK more generally. The LEOs have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit.
In addition, 644 LEO clients have received one-to-one mentoring solely focused on Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. 605 LEO clients have been approved for the Technical Assistance Grant.
The Local Enterprise Office interactive one day Prepare Your Business for Customs workshop helps businesses understand the key customs concepts, documentation and processes required to succeed in a post Brexit environment. 531 Participants have so far attended this Customs Training.
As part of my Department’s response to Brexit, I allocated €3 million in additional resources to Enterprise Ireland [EI] in budget 2019. EI has established a Prepare for Brexit online portal and communications campaign, as well as an online “Brexit SME Scorecard” to help Irish businesses self-asses 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.
Over 5,300 business have used EI’s Brexit Scorecard to date and 85% of EI client firms have a plan in place, while 199 applications for the Be Prepared grant have been approved. 266 EI clients have received funding under its “Act On” programme, which supports the engagement of a consultant to help clients identify weaknesses and improve resilience. EI has also hosted 16 Brexit Advisory Clinics.
EI also launched a Customs Insights Online course at the beginning of the year. This is a new online training support to help all businesses understand how customs work including the documentation and process required to operate and succeed post Brexit. The Customs Insights course explains in clear and simple terms the main customs rules and included the key actions companies can take to prepare for customs after Brexit and the options from Revenue that are available to make the customs process more efficient. This will be available for any company to use whether they are importers or exporters and also whether they are agency clients or not. There have been over 1,260 Customs Insights Course participants.
I also allocated €2.75m additional capital to EI to start developing regional innovation and technology clusters with Institutes of Technology right across the country, positioning them as drivers of world-class start-ups and growth enterprises and helping businesses adjust to market changes, including Brexit.
As part of my Department’s response to Brexit, I allocated €2million in additional resources to IDA Ireland, while an extra €10 million has been allocated for the Agency’s Regional Property Programme. IDA Ireland continues to work closely with international clients, from a range of sectors, to help them assess and prepare for the potential impacts of Brexit, and to capitalise on any opportunities for additional Brexit-related foreign direct investment (FDI) in the future.
The IDA offers support and advice on Brexit-related risks and opportunities and the Agency’s Brexit Toolkit, which is available to clients, includes the full range of supports across training, research and development and capital investment.
The Agency is working hard to avail of new investment opportunities from non-traditional target markets. The Agency’s efforts in this context have already yielded positive results, with over 80 Brexit-related investments and 5,300 associated jobs won to date. In addition, the Agency has recently launched a marketing campaign in key international markets to communicate clearly to both current and potential investors that, Ireland’s investment proposition remains strong and that Ireland remains an attractive location for investment.
Funding to InterTrade Ireland has been increased by 18%. InterTrade Ireland plays a major role as part of Ireland’s Brexit response and offers Brexit-related advisory services to eligible businesses. So far this year, more than 3,200 SMEs have directly engaged with the Brexit Advisory Service.
ITI offers a Brexit Start to Plan voucher and Brexit Implementation Voucher schemes, which enables businesses to get professional advice on how best to plan, prepare and implement for the UK's withdrawal from the European Union. These supports help businesses obtain advice on specific areas such as tariffs, currency management, regulatory and customs issues and movement of labour, goods and services.
ITI Brexit Start to Plan vouchers are worth up to €2,250 (inclusive of VAT) each. 1,613 businesses have applied for a Brexit Start to Plan voucher, of which 1,405 have been approved. ITI new Brexit Implementation Voucher provides financial support up to £5,000/€5,625 (inclusive of VAT), with InterTrade Ireland paying 50%. This will allow businesses to implement critical changes making them better prepared to deal with a new trading relationship.
The Brexit Loan Scheme, using a combination of Irish Exchequer and EU guarantees, has leveraged up to €300 million of lending at a maximum interest rate 4% at a cost to the Exchequer of €23 million - €14 million provided by my Department and €9 million provided by Department of Agriculture, Food and the Marine.
The Brexit Loan Scheme provides relatively short-term working capital, 1 to 3 years, to eligible businesses with up to 499 employees to help them to innovate, change or adapt to mitigate their Brexit challenges. Businesses can confirm their eligibility with the Strategic Banking Corporation of Ireland (SBCI) and, if deemed eligible, can apply to one of the participating finance providers for a loan under the scheme.
As at 5 July, there have been 669 applications for eligibility under the scheme, of which 608 have been approved to date by SBCI. 150 of those applications have progressed to sanction at bank value, to a total value of €32.93 million.
The Future Growth Loan Scheme, launched in March, makes up to €300 million of loans available with a term of 8-10 years. This scheme is available to eligible businesses in Ireland and the primary agriculture (farmers) and seafood sectors to support strategic long-term investment. The Strategic Banking Corporation of Ireland, the scheme operator, opened for eligibility applications on 17th April and up to July 8 it received 524 eligibility applications and issued 482 eligibility letters.
The first table attached sets out the uptake of the different Brexit-related supports available through the Department and its agencies as at 28 June 2019.
The second table attached sets out the respective exchequer increases in allocations to ITI, EI, IDA and the LEOs between 2018 and 2019 and the cost/expenditure of the supports available. Whilst these increases are not all due to Brexit, they are mainly provided to assist the enterprise agencies in their responses to the challenges posed by Brexit.
While I have seen a very positive uptake of the supports available, I am conscious that the delays to Brexit may have led businesses to defer their immediate planning. However, the UK’s exit from the EU will mean changes for Irish businesses. I want businesses to know that my Department and its agencies are here to help. The existing supports, schemes and advice are in place to ensure that businesses are prepared for any Brexit scenario.
|Scheme||Uptake (28 June 2019)|
|Brexit Loan Scheme||669 applications received, 608 approved by SBCI, 150 Loans progressed to sanction at bank level to a value of €32.93 million.|
(Uptake as of 5 July)
|Future Growth Loan Scheme||524 applications received, 482 approved by SBCI, 17 Loans progressed to sanction at bank level to a value of €2.96 million.|
(Uptake as of 8 July)
|Enterprise Ireland Brexit Scorecard - online platform for Irish companies to self-assess their exposure to Brexit||5,334 Brexit Scorecards have been completed. 1095 LEO clients have completed the scorecard.|
|Enterprise Ireland Be Prepared Grant||199 Be Prepared Grants have been approved|
|Enterprise Ireland Market Discovery Fund - A support to EI clients to research new markets||171 companies have been approved under this initiative|
|Enterprise Ireland Prepare to Export Scorecard||3,833 Prepare to Export Scorecards have been completed|
|Enterprise Ireland Customs Insights Online Course||1,269 Customs Insights Course participants|
|Enterprise Ireland Agile Innovation Fund - Gives rapid fast-track access to innovation funding||55 Agile Innovation projects have been approved|
|Enterprise Ireland Brexit Advisory Clinics||16 Brexit Advisory Clinics have been run with over 1,200 in attendance|
|Enterprise Ireland Brexit “Act On Programme” – A support funding the engagement of a consultant to devise report with recommendations to help clients address weaknesses and improve resilience||266 “Act on” Plans have been completed|
|Enterprise Ireland Strategic Consultancy Grant – A grant to assist EI clients to hire a strategic consultant for a set period||1,073 Strategic Consultancy Grants have been approved|
|Local Enterprise Office Technical Assistance Grant for Micro Export - an incentive for LEO clients to explore and develop new market opportunities||605 clients were approved assistance under the Technical Assistance Grant|
|Local Enterprise Office LEAN for Micro - The LEO Lean4Micro offer was developed in collaboration between the EI Lean department and the LEOs to tailor the EI Lean offer for LEO micro enterprise clients||340 LEO clients have participated in the programme |
|Local Enterprise Office Mentoring||644 mentoring participants solely focused on Brexit |
|Local Enterprise Office Brexit Seminars/Events||4,655 Participants at the Brexit Information events|
|Customs Training Participants||531 Participants attended Customs Training|
|InterTradeIreland Brexit Advisory Service||3,219 SMEs have directly engaged with the Brexit Advisory Service in 2019. This is in addition to the 4,175 engagements in 2018.|
|InterTradeIreland Brexit Start to Plan Vouchers||There have been 1,613 applications, with 1,405 approved and 20 still pending assessment.|
|Pilot Online Retail Scheme administered by Enterprise Ireland||11 retailers were awarded funding in March 2019. A second call of the Scheme will open on 19 June and will close 31 July 2019.|
|IDA total allocation (current and capital) for 2019 increased by €33.7 million when compared with 2018.|
Enterprise Ireland total allocation (current and capital) for 2019 increased by €6.8 million when compared with 2018.
LEOs total allocation (current and capital) for 2019 increased by €5 million when compared with 2018.
ITI total allocation (current and capital) for 2019 increased by €1 million when compared with 2018.
|Brexit Loan Scheme||The scheme will cost the Exchequer €23 million (€14 million provide by Department of Business, Enterprise and Innovation and €9 million provided by Department of Agriculture, Food and the Marine).|
|Enterprise Ireland Be Prepared Grant||€304,553 to 16/05/2019|
|Enterprise Ireland Market Discovery Fund - A support to EI clients to research new markets||€443,786 to 16/05/2019|
|Enterprise Ireland Agile Innovation Fund - Gives rapid fast-track access to innovation funding||€736,105 to 16/05/2019|
|Enterprise Ireland Brexit Advisory Clinics||€265,341 to 16/05/2019|
|Enterprise Ireland Brexit “Act On Programme” – A support funding the engagement of a consultant to devise report with recommendations to help clients address weaknesses and improve resilience||€480,000 to 16/05/2019|
|Enterprise Ireland Strategic Consultancy Grant – A grant to assist EI clients to hire a strategic consultant for a set period||€1,373,218 to 16/05/2019|
|Local Enterprise Office Technical Assistance Grant for Micro Export - an incentive for LEO clients to explore and develop new market opportunities||2018 Expenditure|
1 Jan to 31st March 2019 Expenditure
|Local Enterprise Office LEAN for Micro - The LEO Lean4Micro offer was developed in collaboration between the EI Lean department and the LEOs to tailor the EI Lean offer for LEO micro enterprise clients||2018 Expenditure|
1 Jan to 31st March 2019 Expenditure
|Local Enterprise Office Mentoring||There isn’t a specific budget allocation for LEO Brexit mentoring. It is included in the LEOs overall Measure 2 allocation.|
|Local Enterprise Office Brexit Seminars/Events||2018 Expenditure|
1 Jan to 31st March 2019 Expenditure
|The Prepare Your Business for Customs workshop helps businesses understand the key customs concepts, documentation and processes required to succeed in a post Brexit world.||2018 Expenditure|
1 Jan to 31st March 2019 Expenditure
|InterTradeIreland Brexit Start to Plan Vouchers||InterTradeIreland offer two Brexit Vouchers – a planning voucher which provides 100% financial support towards professional advice to help Businesses identify Brexit exposures and to plan.|
The second “implementation” voucher provides financial support up to £5,000/€5,625, which allows businesses to implement critical changes making them better prepared to deal with a new trading relationship post-Brexit. InterTradeIreland pay 50% of the cost of this voucher.
Expenditure to date in 2019: £860,000.
|Pilot Online Retail Scheme administered by Enteprise Ireland||Eleven retailers were awarded funding in March 2019 as part of the new €1.25m fund, with €625,000 available under the first competitive call to support retail businesses to strengthen their online offering. There will be a second competitive call in 2019 with a fund of €625,000.|