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

I will but it will be ten minutes each. Budget 2024 is primarily a cost-of-living budget. With high energy prices and the ongoing impacts of the war in Ukraine, the measures brought forward in this budget and announced by my colleagues, the Ministers, Deputies Michael McGrath and Donohoe, are designed to cushion the impact of continuing high inflation by increasing the amount of money in people's pockets through targeted taxation and related cost-of-living measures. I am conscious of the impact that high inflation can have on the bottom line for businesses and particularly for small and medium-sized indigenous businesses, which are the lifeblood of economic activity across local communities. In that context, it was vital that we delivered a strong enterprise-focused budget, which we have.

I very much welcome the taxation measures announced by the Minister, Deputy Michael McGrath, which will benefit businesses in sectors across all regions of the country. Specifically, the introduction of a new angel investment scheme will be a catalyst for promoting innovation. The new scheme will provide for a stand-alone relief by way of a reduced capital gains tax rate of 16% and will be targeted at angel investors who invest in innovative SMEs.

The increase in the research and development tax credit from 25% to 30% and the increase in the payment threshold to €50,000 will further encourage investment in research and development by both large and small companies. The increase in the rate will mean that any companies within the scope will retain the value of the tax credit following the implementation of the new minimum effective corporation tax rate from 1 January.

The introduction of the increased cost of business scheme grant payment will help those businesses most impacted by increased costs. The payment will be delivered through local authorities and will be paid to small and medium-sized enterprises that pay commercial rates to their local authority. It is estimated that up to 131,000 businesses will be eligible, which equates to 87% of rated businesses. While the full details of the payment are still being finalised, it is intended that payments of up to half of the rates paid by the businesses concerned in 2023 will be the basis for the grant aid in the first quarter of next year. This will go some way towards helping businesses to meet the increase in the minimum wage to €12.70, which is an important step towards this Government's commitment to introduce a living wage by the end of 2026.

Budget 2024 increases the gross allocation to my Department's Vote to €979 million. This is made up of €395 million in current funding and €584 million in capital funding. When the extraordinary temporary business energy support scheme, TBESS, funding is excluded, this represents an increase of €35 million in our core allocation of €944 million for this year. The capital allocation of €584 million secured for next year represents an increase of €26 million on our 2023 core allocation. Together with the reprioritisation of some existing allocations, this increase will allow for a total of €45 million to be targeted at particular capital programmes next year.

Specifically, an additional €27 million will be provided to the IDA to accelerate its regional property and grant programmes. Of the 300,000 people employed by IDA clients, almost 55% are now based in regional locations outside of Dublin, where the availability of property solutions is a key element in attracting inward investment. This increased funding for the IDA will allow it to take on an extra 50 people or so next year, which is badly needed as we compete for foreign direct investment globally. The IDA has already delivered eight of the 19 properties under the current regional property programme with a further three to be commenced this year. The additional funding secured for this programme in budget 2024 will ensure it can deliver further solutions in regional locations such as Cavan, Letterkenny, Drogheda, Athlone, Tralee, Oranmore, Longford and Castlebar. Increased funding will also be provided for the IDA's grant programme. The IDA continues to build on its impressive performance last year. Some 139 investments were won in the first half of 2023 with an associated employment potential of more than 12,000 jobs. Competition for foreign direct investment continues to intensify and the increase secured in the budget will ensure that this progress in new investments can be maintained into next year.

Enterprise Ireland plays a key role in promoting commercial research and innovation in Irish companies. The increased money provided to Enterprise Ireland in the budget will help to progress the development of modern methods of construction through a demonstration park that will be a model for innovation in the construction sector. I also welcome the launch of Enterprise Ireland's smart regions enterprise innovation scheme. The scheme, which is co-funded under the European Regional Development Fund, ERDF, will invest more than €145 million in the period from 2023 to 2027 to support the development of innovative services through local infrastructure, innovation clusters, services to SMEs and early-stage feasibility and priming research. This week, we launched the first fund under the scheme, which consists of €35 million. I hope many projects will be proposed for that money.

The capital allocation for the local enterprise offices, LEOs, is also being increased by 25%, which represents almost €10 million extra. This additional funding will be targeted primarily at helping SMEs and microbusinesses to digitise and decarbonise. The LEO supports such as the energy efficiency grant and the digital for business and green for business programmes are specifically designed to enable small businesses to become more competitive and productive and can directly improve a company's bottom line and capacity for growth as it manages the green and digital transitions.

The current funding allocation of €395 million represents an increase of €9 million on our 2023 core allocation. Together with a reprioritisation of some existing allocations, this increase will allow for a total of €18 million to be directed at current expenditure priorities next year and will be particularly targeted at increasing the resources of our regulatory agencies.

Specifically, I am increasing the budget of the Competition and Consumer Protection Commission by 25% next year. The CCPC is the main regulatory authority in Ireland to enforce competition and consumer protection law. In addition to its existing mandate to oversee compliance with more than 40 separate legislative instruments, the commission will take on new responsibilities under the Digital Services Act, the Digital Markets Act, enhanced competition Acts and data governance and artificial intelligence Acts. This increase in funding will ensure that it can recruit the additional staff required to carry out these new functions and undertake the related advocacy and information campaigns necessary.

The Digital Services Act established a framework of transparency, accountability and fairness in the provision of digital services through the imposition of specific obligations on service providers. The digital services co-ordinator, DSC, a constituent part of Coimisiún na Meán funded by my Department, is a key component in the enforcement of the Digital Services Act. I am acutely conscious of the importance of properly resourcing the DSC and I have worked closely with my colleague, the Minister, Deputy Catherine Martin, to map out its functions, its tasks and the resources required for next year. The additional €3.3 million being provided to the DSC in the budget will ensure that it has the staff numbers and expertise needed to carry out its important enforcement and regulatory activities.

Since this Government came to office, significant legislation has been enacted in areas such as sick pay, gratuities and tips, the gender pay gap, agency employment and so on. The Workplace Relations Commission has been charged with the enforcement of these rights and an additional €1.7 million is being allocated to facilitate the recruitment of additional inspectors and adjudicators. In addition, €3 million will be provided to the Health and Safety Authority, allowing it to increase the number of inspectors and modernise its technology platforms. An additional €1 million will ensure that the Corporate Enforcement Authority can further increase its staff and develop its digital expertise. The Ministers of State, Deputies Richmond and Calleary, will provide more detail on these and other areas that will benefit from increased funding secured in the budget. In total, across all of the agencies linked to my Department, we are going to be spending an extra €40 million or so next year, which is a significant increase.

In conclusion, the measures announced in budget 2024 are focused on the cost of living.

It is important that the Government continues to provide targeted supports to help citizens and businesses to deal with the impact of continued inflation. From an enterprise perspective, the specific supports that have been introduced will contribute to a supportive business environment and will make a significant impact on further helping businesses to meet increased costs, while continuing to grow, innovate and support communities throughout the country. I commend the budget to the House.

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