Grants will help Gaeltacht firms assess impact of Brexit

Grants of up to €5,000 will be given to Gaeltacht companies to help them prepare for Brexit.

The €100,000 scheme run by Údarás na Gaeltachta will encourage companies to undertake an assessment on how ready they are for when Britain leaves the EU in the areas of business strategy, operations, innovation, sales and marketing, finance and people management.

The grant, which must be matched equally by the company up to a maximum of €5,000, will be available to companies who are already exporting and where over 20% of the company’s sales are in the United Kingdom.

The grant will be based on a self-assessment by the firm of their exposure to Brexit.

Údarás na Gaeltachta is currently arranging a series of regional seminars in Gaeltacht areas regarding Brexit to raise awareness of Brexit and the opportunities and challenges it will present and the various supports that are available from support agency.

An open call for the ‘Bí Réidh’ scheme will be launched on completion of the regional seminars. Further information including application forms for the scheme will then be made available.

Chief Executive of Údarás na Gaeltachta, Steve Ó Cúláin, said it was difficult to assess the effects of Brexit given the daily or even hourly changes.

“There is no doubt that it will have a significant effect on our client companies and it is very important that they are prepared for it and that the appropriate advice and expertise is available to them,” he remarked.

“It is significant that nearly a quarter (24.5%) of Údarás na Gaeltacht client company exports, at a value of €154 million, are to the United Kingdom. Nearly 60% (€224m) of client companies’ raw materials are imported through or from the UK.

“Client companies exporting to the UK depend heavily on this market and any uncertainty could pose trade difficulties. Some €115 million of client company export sales to the United Kingdom come from the BMW region (Galway, Mayo, Donegal) and €39 million from the Southern and Eastern Region (Kerry, Cork, Waterford, Meath). “

Figures from ABSEI research conducted in 2016 show that Údarás na Gaeltachta client companies had total sales of €926 million in the previous year. Exports grew by 10.6% to €628 million, an export–sales ratio of 68%.

Údarás is working with Enterprise Ireland to deliver the scheme as part of a coordinated cross-agency response to Brexit.

Minister for Gaeltacht Affairs and Natural Resources Seán Kyne said the €100,000 will help at least 20 Gaeltacht companies, some of them based in Galway, to develop a Brexit action plan.

“Given the uncertainty regarding Brexit, I commend Údarás for introducing this scheme, particularly given that almost a quarter of all exports by Údarás client companies are to the UK.

“This funding will help companies that are most exposed to Brexit to prepare and work out how best to take advantage of any opportunities Brexit may bring as well as the challenges it will bring. I encourage all eligible Údarás client companies to apply for this extra support.”

Údarás companies supported 2,932 jobs in Galway at the start of this year – a net increase of 62 jobs on the 2015 figure.