Written answer
Brexit Data
143. Deputy Billy Kelleher asked the Minister for Business, 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. [27198/19]
Comment on this
While 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. That’s why my Department and its agencies have put in place extensive supports, schemes and advisory resources to ensure that businesses are prepared for Brexit. While we cannot yet know the form that Brexit will take, these measures aim to assist businesses in identifying key risk areas and practical preparatory actions regardless of the circumstances of the UK’s withdrawal from the EU.
Brexit is my top priority at this time and was central to my decision-making on the allocation of the additional €14.2m Current and €65m Capital funding I secured as part of Budget 2019.
For example, I provided an additional €5m to the network of Local Enterprise Offices, €3m to Enterprise Ireland, €2m to IDA Ireland and €1m to InterTradeIreland to help businesses prepare for Brexit, together with funding for the longer-term Future Growth Loan Scheme and the IDA Regional Property Programme. I also provided extra staff for regulatory bodies of my Department to ensure they are properly resourced to address the additional demands that Brexit will create.
Local Enterprise Office (LEO) funding has been increased by 22% in 2019, 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 LEOs, which have a presence in every county, are working with the broad range of small and micro indigenous enterprises across sectors to ensure that they are informed about Brexit and have plans in place to manage the new trading relationships on the island and with the UK more generally. This includes a new customs training programme for all businesses, exporters and importers, rolled out in conjunction with Enterprise Ireland.
I was also pleased to announce an additional capital allocation of €2.75m to Enterprise Ireland 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.
Through Enterprise Ireland, I also doubled funding for the Online Retail Pilot Scheme to €1.25m in 2019, which will support SMEs in the retail sector to have a stronger online presence and find new markets. This new Scheme follows through on my commitment to increase the scale and internationalisation of indigenous enterprise; increase productivity in high-employment sectors; and encourage Brexit readiness. I announced the first 11 successful applicants on Friday 01 March last and a second call of the scheme opened on 19 June. Enterprise Ireland invested €74 million in Brexit impacted businesses in 2018.
Funding to InterTradeIreland has been increased by 18% and they, along with the LEOs, are offering a range of Brexit-focused supports to companies, including those engaged in cross-border trade with Northern Ireland. ITI offers a Brexit Planning Voucher worth up to €2,250, which enables businesses to get professional advice on how best to plan and prepare for the UK's withdrawal from the European Union advice on specific areas such as tariffs, currency management, regulatory and customs issues and movement of labour, goods and services. In March, it launched a Brexit Implementation Voucher, which provides financial support up to €5,625 with InterTradeIreland paying 50% of total expenditure. 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, 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 Future Growth Loan Scheme opened for applications through the Strategic Banking Corporation of Ireland in April of this year. The scheme provides a longer-term facility, 8 to 10 years, of up to €300m to support strategic capital investment for a post-Brexit environment by business at competitive rates. This scheme is jointly funded by my Department (€37.2 million) and the Department of Agriculture, Food and the Marine (€24.8 million) at a total cost to the Exchequer of €62 million.
The first table attached sets out the uptake of the different Brexit-related supports available through my Department and its agencies as at 14 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.
Brexit preparedness supports - uptake of available schemes - 14.6.2019
1 The Market Discovery Fund figure listed is lower than that of the end of February document figure of 251. The updated figure refers to the number of businesses approved, while the earlier number of 251 referred to the number of projects approved. This is now how it is reported to the Board, where projects was used previously.
2 The figure of 651 provided on 08 May was incorrect and should have indicated uptake of 551. This was due to human error
Brexit preparedness supports - expenditure - 20.5.2019
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.