Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

Every week we hear the disheartening news of local, long-established businesses closing their doors for good. This loss is not just a blow to our economy, but to the fabric of our communities in urban and rural areas. Our businesses are the lifeblood of local communities, and the heart of these communities. It seems the Government has yet to grasp the full extent of the crisis engulfing the hospitality sector and, by extension, the wider small business community. The recent wage increases and the hike in VAT on food from 9% to 13.5%, coupled with the new sick leave mandate, are compounding increasing operational costs, especially energy costs, which have more than doubled since Covid. The cost-of-living crisis has reduced footfall as consumers, faced with rising prices, cut back on spending. Staff shortages are becoming more acute, with fewer people viewing the hospitality sector as a viable career path. As a result, the very fabric of our communities, woven through our cafés, restaurants and pubs, is under threat.

The proposals we present today are a set of measures aimed at providing immediate relief and a sustainable path forward for our local businesses. First, we are calling for a reduction by one third in the VAT rate for those selling food in the hospitality sector - our cafés and restaurants. Second, we are calling for the reinstatement of the lower employer's PRSI rate for those on minimum wage. We need to see those measures enacted before Easter. This interim measure is crucial to keep the doors of our struggling enterprises open. This is not a financial reprieve or, as some suggest, delaying the inevitable. This is a statement of support acknowledging the invaluable role our businesses play in the economy and the social fabric of our communities.

More fundamentally, we are calling for the establishment of a task force with teeth, akin to the successful mobile phone and broadband task force of the past. That was acknowledged by both the State and private sector as helping to facilitate the rapid roll-out of telecommunications infrastructure across the country. This new task force would not merely serve as a discussion forum, but be as a proactive body with the authority to tackle Government red tape and the escalating costs imposed on small business. Chaired by a Cabinet Minister, it would ensure that small business concerns are not just heard but acted upon with quarterly progress reports presented to the Oireachtas joint committee on enterprise. This task force would examine every Government controlled cost impacting on small business, from licensing fees to regulatory charges, and work toward reducing these burdens. Its role would be to cut through the bureaucracy that often stifles innovation and growth to ensure small businesses have the support needed not just to survive but to thrive.

The situation is dire and the time for action is now. The Government's recent dismissal of the need to adjust the VAT rates, despite Government TDs and Ministers - none of whom came into the House today - calling for such actions only adds to the urgency of our motion. Let us not divide the House on this issue. Together we can influence change and ensure that our small businesses, the backbone of our local economies and communities, receive the support they critically need. Let us stand united in our call for action, for the survival of our small businesses and the future of our communities. I commend the motion to the House.

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