Dáil debates

Thursday, 18 January 2024

Saincheisteanna Tráthúla - Topical Issue Debate

Small and Medium Enterprises

4:50 pm

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

A number of weeks ago I was very lucky to meet the proprietors of Wholesome Kitchen in Mullingar when I visited the local enterprise office. Deputy Troy was on paternity leave at that time so we were not able to meet together. I know it is a wonderful business providing good employment. I can tell the Deputy it is good food as well because I was in a position to sample a bit. This is why I want to use it as an example of looking at the various options open to us.

With regard to debt warehousing, I very much hope that, as Deputy Troy has asked, we will get clarity on this in the next fortnight. That is a fair ask. With regard to the increased cost of business scheme, it will be completely paid out by the end of the first quarter of this year. It includes every local authority in the State.

With regard to energy, one of the big issues with TBESS was, as Deputy Troy knows, that unfortunately far too many people did not access it. They did not apply for it because it was deemed too burdensome. This is why we are using a different methodology to get grants through the increased cost of business scheme without the need for filling in too much frameworking.

Industry engagement will be maintained. I fully agree with Deputy Troy that the VAT rate for food-based businesses should be looked at. It was considered when the temporary measure was relieved. It was seen in the overall package that took in the entire hospitality sector, and the cost cumulatively for the economy was approximately €450 million. Sadly, too many businesses were simply doing too well and others were not in a position to be represented. I take Deputy Troy's point on board. It is something we discussed yesterday with the Restaurants Association of Ireland. If I have missed anything, I will come back to the Deputy.

With regard to the staged introduction of measures, to be frank, I am very reluctant to go down that path. The indicative response from the report we commissioned showed the vast majority of businesses can take these changes. It is very important that we increase the minimum wage this year and that we move towards the living wage, which is something we all committed to in the programme for Government, and that, equally, we increase sick pay again next year. In sectors where there is an adverse effect, there are other measures we can look at. We acknowledge that the Government is putting a burden on businesses to make very much needed societal changes. For this reason, the Government needs to step up to the plate, be it through taxation or other measures.

Comments

No comments

Log in or join to post a public comment.