Mr. Declan Hughes:

We have a range of skills areas on the list of eligible skills and chefs are certainly included on that list. As I mentioned, we are working on a range of initiatives to try to accelerate the assessment and approval of applications. We have had a 50% increase on the 2020 applications. This is 30% up on 2019. That is requiring additional resources and additional productivity, etc., but we are making progress on those applications. Many people in the hospitality sector, in restaurants and bars etc., may not be trusted partners because of low volumes. They may not be on the trusted partner list, which is a way for employers to go through a pre-approval process. If particular businesses they think they will have issues or difficulties over the coming period - they may have expansion plans, etc. - I recommend that they should go through that process, which would enable them to go into a different pile rather than into one-off applications.

Similarly, in terms of apprenticeships, a balance must be struck between having a very quick response and brining in additional staff from EU and non-EU countries, and ensuring we have a pipeline of skilled and trained staff for the sectors of the future.

That is where the work of experts in future skills needs is very important. We must use SOLAS working with the education providers, etc. and get the messages out about where the job openings are going to be over the period to 2030 and 2040. The population will increase by about 1 million between now and 2040 so another 600,000 people will be at work and there will be job openings. Therefore, we need to consider what jobs and occupations will be required in the future. Certainly we will work with employers across the sectors where there are work permits and, indeed, Deputy Bruton referred to those. We have done this previously with the meat and processing sectors. Where there are short-term work permits there must also be a commitment to programmes of training, apprenticeship and upskilling. I refer to the work of other agencies that are involved on the training side, particularly SOLAS in that regard.

The costs limits are at a reasonable level. I do not have the details but the application costs would not be significant and compare favourably.

As the Senator mentioned, the VAT rate is an issue for the Minister for Finance. The 9% rate will last until the autumn of next year. We have had feedback that, for various reasons, many other countries and cities have local taxes that add to the bill. While there are demands for the 9% rate to be maintained, in terms of the international market, the glide path is clear for the coming period.

We will have additional funding for next year and part of that is to sustain the current scheme in terms of Microfinance Ireland and the sustaining enterprise fund. These are on Covid in addition to funding for Brexit. We will launch under the climate transition fund and the digital transition fund. These are broad-based funds to encourage businesses to go on or accelerate their digitalisation journey. As many as 17,000 businesses have gone through the step up with the local enterprise offices. Indeed, Enterprise Ireland now has a €9,000 voucher to help businesses either to get started or to increase their sophistication of digitalisation. We will step that up next year to build on such progress. It is no longer about just getting businesses to have a website and do transactions. It is now about sophistication and a substantial amount of that will concern the adoption of, for example, advanced manufacturing industry 4.0 at firm level, which requires training and investment.

On the climate side, we are a little bit further behind. This year, we launched a green for micro initiative through the local enterprise offices and Enterprise Ireland. A lot of that work is at the planning stage in terms of businesses having to develop their climate and circular economy strategies. Then they must work out the step up that is needed regarding their own capabilities and business mode, and then make capital investments. We would see that capital investment starting and commencing significantly next year.

The accelerated capital allowance is in the budget. It is a help because it will incentivise investment in more energy efficient equipment etc. There are also measures for the use of alternative energies. They include green hydrogen, which we will see become significant for decarbonising the transport sector, and in parts of the cement and aluminous cement sector.

I mentioned in the brief the additional money - €2 million - that will go to local enterprise offices. There is also additional money for InterTradeIreland, IDA Ireland and Enterprise Ireland for their broad base of schemes to increase productivity and innovation.