Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

On the last bit first, on reporting requirements, this is happening. At a European level, there is a reporting obligation. We are going to move to a point where, effectively, companies will have to provide their sustainability credentials each year in the same way they have to provide their annual financial returns. We will be starting this process with larger companies and then moving to smaller companies over the next few years. Even larger companies, though, will have to report in the context of their full supply chains. As the Senator is aware, many firms trading business to business, B2B, smaller businesses, will end up having to contribute to the reporting obligation for a larger company anyway. If we look at how the Irish economy works, there is much interaction between multiple companies before a manufactured product is produced. What the Senator has referred to in this regard, then, is already happening at a European level, which I think is the appropriate way to do it.

I do not believe we should be introducing laws and regulations in Ireland that would, potentially, require a significant increase in the bureaucratic burden placed on Irish companies that their competitors in the rest of the Single Market would not have to apply. The European Commission has led on this initiative. Industry is a little concerned about the increased challenge of reporting. I think mandatory reporting standards will become a normal part of business in the years to come. Our job in the Department of Enterprise, Trade and Employment is, of course, to help businesses with this transition, and to try to make it as easy as possible and to try to allow digital platforms to make it easier to do so to ensure we do not have small businesses spending a disproportionate amount of their time putting audits together when this could be done more efficiently. We are, therefore, working with many business representative bodies now in the enterprise forum and in the SME forum to discuss what this framework will look like and what the obligations will require those companies to do.

We are, obviously, trying to keep the costs here down as much as possible. Let us not forget the multiple policy decisions that have made the costs of businesses higher. These are, by the way, all for the right reasons, whether this concerns the minimum wage increases, extending sick leave provision, extending new types of leave for domestic violence, etc., more bank holidays or pension provision for the future. These are all extra costs for employers. A reporting obligation is also going to be an extra cost for employers. We must, therefore, try to be very aware of the cumulative burden of all these extra costs on many small businesses under pressure. I agree with the Senator, then, but let us do this in the context of what is happening at an EU level and let us help businesses to do it as efficiently as they can, keeping the costs down.

In terms of supporting pilot projects in building, this is happening now in respect of modern methods of construction, MMC, as it is now called. I am sure the Senator has seen some of the projects in this area.