Damien English (Meath West, Fine Gael) | Oireachtas source

Building on the Tánaiste's comments, this budget is very much focused on a jobs-led recovery. We have been in this place before, when we had to turn to the business community to work with the State to create jobs for those who have no work and to drive the economy. We want to see a well-functioning economy delivering the resources and money we need to restore the public services to the level they should be at and enabling us to build on that. An overall budget package of an increase of €4.7 billion in expenditure, bringing us close to €87 billion, is a commitment to the future of this country. Within that, we have tried to reach all the sectors that need assistance. We are trying to put in place a strong footing, and build on it, as we recover from the Covid period.

In talking about a jobs-led recovery, it is important to support, as much as we possibly can, the businesses that create those jobs and which want to grow and expand, not hit them with higher taxes, as other parties would do. SMEs are the heartbeat of the Irish economy. They make up more than 99% of the total number of Irish companies, employ hundreds of thousands of Irish workers, and are instrumental in driving regional development and economic growth. This budget recognises that a strong and resilient SME sector is key to rebuilding the economy after the Covid period, helping to ensure its sustainability and building competitiveness over the longer term.

As we look to build resilience within the SME sector for the future, it is vital that businesses are equipped for the transition to the green and digital economy. I am pleased that Enterprise Ireland has been allocated an extra €10 million in budget 2022 to enable it to work with enterprises on the importance of climate change, mitigation and adaption. Working through our agencies, we will assist companies to reduce their CO2 footprint and capitalise on opportunities emerging from the low-carbon transition through a series of targeted initiatives. This will include awareness and capability around carbon abatement opportunities, including training, audit, CO2 measurement, feasibility and collaboration with technology partners.

Enterprise Ireland will also have an enhanced allocation to accelerate the digital transformation agenda for the country's creative and innovative small and medium enterprises. Firms that take the lead in their digital journey as they move forward with their expansion plans will contribute greatly to the growth and resilience of our economy as we emerge from the remaining necessary public health restrictions and as global markets begin to reopen fully.

Local enterprise offices, LEOs, will receive an additional €2 million in funding, which represents a 5% increase in their funding. This investment will allow each of the 31 local authority LEOs to enhance the role they play in driving local and regional development, including the regional enterprise plans we are working on in the Department. I compliment the LEOs on the assistance they have given the Department over the past 18 months in reaching thousands of companies with online trading vouchers, business continuity vouchers and the other supports they provide. Like many of our State agencies, they really stepped up and showed they are there to support business. We are allocating them the resources to ensure they can keep doing that.

The additional €2 million provided to the LEOs will focus on the dual challenges of digitalisation of micro and small companies and addressing the challenges and opportunities in transitioning to a low-carbon, sustainable economy. The ongoing success of the trading online voucher scheme will be built upon by continuing to assist enterprises on their digital journey, as well as developing further awareness and training programmes to encourage microenterprises to think digital first to complement their physical presence. Through schemes such as green for micro and lean for micro, the LEOs encourage enterprises to view their business practices critically and look for measures that can increase efficiency, reduce waste, decrease their carbon footprint and promote sustainability, thereby assisting them to create more jobs and take on larger markets.

As the recovery gathers pace, we must ensure targeted advisory and financial assistance is in place and no sector is left behind. The past 18 months have been very challenging for all SMEs but some sectors have suffered even more than others. Retail is one of those sectors. Retail businesses play an important role in our economy by creating jobs and opportunities. The retail sector is the largest private sector employer in the country, creating and sustaining rewarding jobs in every city, town and village, numbering close to 300,000 in total. High street retailers have been under pressure for some time due to shifting consumer behaviour, and the Covid-19 crisis has challenged the sector even further. Given the importance of the retail sector and the benefits of trading online for retailers, I am pleased we are introducing a new round of the successful online retail scheme for next year. We are currently reviewing the scheme to see what changes we can make to maximise its impact and stretch the resources even further. In addition, the Department has recently commenced a major review of the retail sector. This is expected to be completed by the end of the year and it will lead into a retail strategy or mini-action plan that will be produced next year, identifying other areas in which we can stand behind the sector to increase its offering and job potential.

We must ensure the recovery and growth of the SME sector extends to all parts of the country. That is why regional enterprise development is a key priority of the Government. My Department is overseeing the development of nine new regional enterprise plans to 2024, which are expected to be completed later this year, probably in November. The Minister of State, Deputy Troy, and I chair eight of those plans on behalf of the Tánaiste, with the latter chairing the Dublin plan. Our Department, through Enterprise Ireland, has made available more than €117 million to date in regional enterprise development funding to assist locally led projects. Budget 2022 builds on this in allocating an extra €5 million to that work. It also builds on last week's announcement of a commitment under the national development plan, NDP, to fund the regional plans over the next three years to drive job creation locally and throughout the regions.

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