The economy in Cavan/Monaghan is very heavily dependent on the agri-food, construction products and engineering sectors. The critical market for these sectors is Northern Ireland and Britain. Any disruption to trade post Brexit will impact adversely on employment in our region.
I have repeatedly called on the Government, both in Dáil Éireann and at Oireachtas Committees, to introduce specific measures to support small and medium enterprises in the border region. Supporting the maintenance of existing employment and local business and commerce is essential for the border economy.
Below reply by the Business Minister to my recent Parliamentary Question in Dáil Éireann –
For Written Answer on : 15/01/2019
Question Number(s): 498 Question Reference(s): 54111/18
Department: Business, Enterprise and Innovation
Asked by: Brendan Smith T.D.
To ask the Minister for Business; Enterprise and Innovation if a specific funding programme will be introduced to assist small and medium enterprises in the Border region which are totally or heavily dependent on the Northern Ireland or British market due to the difficulties that will arise from Brexit; and if she will make a statement on the matter.
My Department and its agencies are providing extensive supports, schemes and advice to ensure that businesses are prepared for Brexit. These measures aim to assist businesses in identifying key risk areas and the practical preparatory actions to be taken over the coming weeks.
My Department and I have been very active in the ‘Getting Ireland Brexit Ready’ public information campaign. This campaign includes workshop events throughout the country aimed primarily at business and people most impacted by Brexit. A ‘Getting Ireland Brexit Ready’ event was recently held in Monaghan in October and I was delighted to welcome many businesses from the Border Region. Officials from my Department and agencies also participated in the Getting Ireland Brexit Ready event in Letterkenny in Donegal on Friday 30 November last, which included Enterprise Ireland, IDA, the LEOs, NSAI and the HSA.
As part of Budget 2019, I allocated an additional €1million to InterTradeIreland (ITI). ITI works with SMEs on an all-Ireland basis and is particularly well-placed, given its remit to develop cross-border trade, to help SMEs prepare for the particular North-South challenges associated with Brexit.
The ITI Brexit Advisory Service provides a focal point for SMEs working to navigate any changes in cross-border trading relationships arising as a result of Brexit. As part of the service, ITI has organised a series of awareness events focused on improving knowledge of customs processes and procedures and identifying actions that can be taken in areas such as logistics and supply chain management.
ITI also offers a Brexit Start to Plan voucher scheme, which enables businesses to get professional advice on how best to plan and prepare for the UK’s withdrawal from the European Union. This support helps businesses obtain advice on specific areas such as tariffs, currency management, regulatory and customs issues and movement of labour, goods and services. ITI vouchers are worth up to €2,250 (inclusive of VAT) each. Companies are finding the vouchers very useful and there has been strong demand which can be attributed to the media campaign conducted by ITI across a range of platforms.
The Local Enterprise Offices (LEOs) in the Border Regions are the first-stop-shop for anyone seeking guidance and support on starting or growing their business. The LEOs have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit. In addition, 402 LEO clients have received one-to-one mentoring solely focused on Brexit.
The LEOs engage in a number of other schemes to help companies prepare for Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. Also, additional capital funding of €5 million was announced in Budget 2019 for local enterprise development.
In addition, the six LEOs in the Border region are working together with their Northern Ireland counterparts under the EU Co-Innovate Programme. The aim of Co-Innovate is to give SMEs from the manufacturing and tradable services sectors in the eligible regions the tools and tailored support to help them to innovate, differentiate and compete successfully.
In December, I announced a further €30 million in funding for successful projects under Call 2 of the competitive Regional Enterprise Development Fund (REDF). Taking the first and second calls of the REDF together, the Border Region had seven successful projects with a total funding allocation of more than €10.6 million. This funding will drive enterprise development and job creation in the Border Region.
In April 2017, I asked all the Regional Action Plan for Jobs Implementation Committees to start a process to refresh and refocus all Regional Plans to ensure their relevance and impact out to 2020. This will ensure that the Plans remain effective and that they continue to deliver jobs across the country, in all regions, and can be robust in addressing the challenges we face, including Brexit. As a result, both the North-West and the North-East will both have their own plans in the new iteration and Brexit will be an ongoing priority area for both Committees. These plans are being finalised and will be published in February.
The €300 million Brexit Loan Scheme provides relatively short term working capital, 1-3 years, to eligible businesses with up to 499 employees to help them innovate, change or adapt to mitigate their Brexit challenges. The scheme is open to eligible businesses from all regions of the country, including those in the Border counties. 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.
The Future Growth Loan Scheme was announced in Budget 2019. The scheme will provide 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 is jointly funded by the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine. Loans of €50,000 to €3m will be available, with loans of under €500,000 being provided on an unsecured basis. 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. The SBCI has issued an “Open Call” for financial institutions to apply by 11 February 2019 for designation as a lending partner under the Scheme. It is expected that this Scheme will be operational in early 2019.
Last week I announced the Enterprise Ireland (EI) Annual Results where every region in Ireland recorded increases in employment, including a 9% increase in the North West and a 3% increase in the North East. Nationally, a record 215,207 people are now employed in EI supported companies. Over 23,700 of these jobs are in the Border region. Some of the recent EI jobs announcements for the region have included 90 new jobs in E & I Engineering in Donegal, 80 new jobs in Crust & Crumb in Co. Cavan and 200 new jobs in Combilift in Co. Monaghan.
EI also recently launched a new Customs Insights Online course which 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.
In order to help build the enterprise capability in this region, under the Regional Enterprise Development Fund (REDF) EI invested in seven successful projects in the Border region with a total funding allocation of more than €10.6 million. This funding will drive enterprise development and job creation in the Border Region.
Enterprise Ireland will continue to engage with its clients including those in the Border region to ensure they have the supports required to prepare for any kind of Brexit.
While I have seen a very positive uptake of the supports available, not everyone is engaging. With Brexit around the corner, I want businesses, particularly those around the Border counties to know my Department and agencies are here to help. My Department and its agencies are providing extensive supports, schemes and advice to ensure that businesses are prepared for Brexit.