With Brexit very much on the horizon, now the big question is: How can businesses prepare for the UK’s exit from the EU in just five weeks’ time?
The EU expects that the UK will leave on October 31 and during a panel discussion entitled ‘Brexit and Business’ at the Government of Ireland arena at the National Ploughing Championships yesterday morning, Wednesday, September 18, those gathered heard there are numerous supports in place for SMEs – including those in the agri-food sector.
The Minister for Business, Enterprise and Innovation, Heather Humphreys, participated in the discussion as did CEO of Bord Bia, Tara McCarthy, and Stephen Creaner, Enterprise Ireland.
Meanwhile, one of the difficulties posed by Brexit – and one that was highlighted this morning – is the significant drop in the sterling value against the euro.
‘Managing currency volatility’
So, given Ireland’s agri-food sector dependence on the UK market, how can local businesses manage this currency volatility?
Minister Humphreys said that currency volatility “is of particular concern” to the Irish Government.
The Government has been working with businesses since 2016 to factor that into considerations.
She continued: “We introduced the Brexit Loan Scheme because there could be cash-flow difficulties.
“It is a €300 million fund that can be accessed through the Strategic Banking Corporation of Ireland (SBCI).
“There is also a currency impact calculator that has been introduced by Enterprise Ireland and a guide for currency risk management can also be accessed by Irish SMEs.
“There are a number of different supports out there that people can look at that will help support businesses through Brexit.”
Business investment
Meanwhile, in 2018, Enterprise Ireland provided €74 million in funding to help businesses prepare for Brexit.
During the panel discussion, following on from this, Creanor pointed to the importance of business investment despite the “uncertainty” around Brexit.
“It’s all about having a plan and putting that plan in place.”
He concluded: “We have put in place a direct grant to companies should they need it for a loan application.
“Our advice would be to start that process now and at least it will be available if and when it is needed.”