Getting Irish business Brexit-ready
New legislation brought into force by the outgoing Irish government is a welcome step in helping Irish business meet the challenges posed by Brexit.
Doubling of Funding for Enterprise Development Agencies
The overall capital funding allowance that can be provided to IDA Ireland, EI and Science Foundation Ireland, in their combined lifetimes, is increased from €7 billion to €14 billion.
Enterprise Ireland (“EI”), the state agency responsible for the development and growth of Irish enterprises in world markets :
• can now offer enhanced supports to client companies involved in research, development and innovation
• has increased flexibility to support enterprise development
• is empowered to manage its investments in client companies on a par with private sector investors.
For the first time, EI can provide grants to the horticulture sector and can partly fund research and development undertaken outside of Ireland by Irish based companies. Government approval will be needed for investments above €7.5 million in any company.
The act was commenced by the Minister for Business, Enterprise and Innovation with effect from 7 January 2020 (with the exception of a section amending the Microenterprise Loan Fund Act 2012) .
The measures were originally contained in the omnibus Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019. The Irish government decided, however, to accelerate the introduction of this element of the legislative response to Brexit given the strategic importance of state business support to the Irish economy.
To discuss the impact of Brexit on your business, contact Matheson’s Brexit Advisory Group or your usual Matheson contact.