Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

Both my colleagues, the Ministers, Deputies Peter Burke and Catherine Martin, have extensively engaged with the tourism and hospitality sector. I know that my colleague, Deputy McGrath, when he was Minister recently met the sector also. That is why the Government responded in budget 2024 with the increased cost of business grant, which aims to provide financial support to small and medium-sized businesses who operate a rateable premises at a cost of €257 million.

Broader supports were also announced, including the extension of the 9% VAT rate on gas and electricity, for example, which was another support. There has also been a range of other measures brought by the Minister for Enterprise, Trade and Employment, including raising the employer PRSI threshold from €441 to €496 with effect from 1 October. That will ensure that employees earning the weekly equivalent of the national minimum wage will pay the lower rate of employer PRSI of 8.8%.

We are conscious of the particular cost increases which have been impacting businesses but I would say, more generally, that the purchasing power of households should strengthen as we enter the latter months of the year, with wage inflation now exceeding the flat rate of inflation. That should see improved consumer spending, which retailers in the hospitality sector should see in their businesses over the coming period. My colleagues, the Ministers, Deputies Burke and Martin, are having ongoing engagement on the wider cost implications and no decision has been taken in the context of budget 2025.

See this speech in context