Joe Flaherty (Longford-Westmeath, Fianna Fail) | Oireachtas source

I know we are talking about enterprise and retail but I want to get them out of Dublin as quickly as possible because they are spending too much money, so I want to get them back to Longford where it is to be hoped their money will be more productively spent.

I think this is my first time to address the Minister in his new capacity. I commend him. I know he is a number of weeks into the role. I welcome the work he has done to date, especially in the increased cost of business supports. It is no secret that small businesses in rural Ireland, particularly those in retail and hospitality, are struggling. We have seen a seismic societal change compounded by Covid. The landscape in rural Ireland has changed. Traditional bricks-and-mortar business has never faced such a challenge as it does today. We are probably in the last generation of people who go to the bricks-and-mortar stores. Younger people instinctively go online. There is a challenge for us in building vibrancy and retaining rural communities and small towns and villages. We need to change how we encourage people to stay in business and the line-up of businesses on the main street. The increased cost of business scheme has been welcomed, in particular the recent announcement that the Minister would increase the grant amount, which is significant. I commend officials in Longford County Council, in particular the LEO office and revenue generation team. County Longford has the third highest uptake of the grant in the country. Herculean work was done by officials in the county. When it was extended for two weeks recently, they took it upon themselves to start ringing businesses that had not applied and encouraging them to apply. That is important.

It is fair to say businesses have seen a plethora of challenges, compounded by large increases in energy and food costs and, while it is admirable that we have tackled the issue of low pay and the minimum wage, it has had a significant knock-on effect for many small businesses in rural Ireland. I welcome the recent changes in PRSI but I would like to see those on minimum wage are moved out of PRSI and the additional burden taken off employers. It remains a major challenge for employers. Auto-enrolment is another challenge. I appreciate that moves have been made to extending sick pay to six days, which I welcome.

I must take this opportunity to raise the issue of 9% VAT for the hospitality sector. If you can keep your smiles in, I will also raise it in relation to the hairdressing sector. A large number of people from the sector have left and set up their own operations at home, many of which operate outside the mainstream economy in the black market economy. It is unfair on those who have invested large sums in their businesses, especially in rural Ireland, in towns like Longford or the ladies' village, Drumlish, where the local hairdresser is part of the local community. It is much more than a hairdresser. It is where you go to catch the news and catch up on what your neighbour is doing. It is important we keep our hairdressers. They play an important role in our local communities.

We have taken a number of important steps but we have to be the Government of the day that acknowledges that what was a traditional business in rural Ireland 20 years ago simply cannot survive now. Conceptually, how we shop and what we want from our shops has changed. Considering what Tesco and other large stores did, it is very much experiential shopping. People want an experience when shopping. It is much more than just going out and buying a new shirt or scarf. People want a whole experience. There are a number of successful businesses in that regard in Longford such as Fabiani. It is an award-winning store that pioneered that. There are many successful examples in County Longford and across rural Ireland. There is more to do but this is an important first step. I echo Deputy Catherine Murphy's point on commercial rates. If we look at what we have done with commercial rates since Covid and now with the increased cost of business grant, we have relied on the rates issue to put back money into these local businesses.

It probably comes to a point where there may be a certain section or size of business we need to exclude from the rates base. I think that is an important point to consider. I thank the Minister of State for taking those points on board.

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