Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on budget 2025 in respect of my Department. It is the first time the Department of Enterprise, Trade and Employment's budget has gone over the €1 billion mark, which is a significant increase on the previous year in terms of core expenditure.

We have a number of initiatives in the context of this budget to support families and businesses right across the country. We are very clear in terms of our support for the hospitality and retail sectors.

I am very much aware of their vulnerability and the context in which they have been operating, particularly in recent years with the increased regulatory environment and the associated costs. That is why we are responding this year with a €170 million power-up grant to assist them with costs, representing a €4,000 cash payment into each business’s bank account by year end. We are all aware of how tight margins are, so a business would have to earn a significant turnover to get a grant of that amount. We will do everything we can to ensure the grant is paid before Christmas.

It is important to consider how these costs for businesses have come about. A number of proposals are on my desk, for example, increasing sick pay to seven days, which is required by legislation enacted by the Houses. I have carried out research on this proposal and will make a decision by the year’s end, but I have not pressed ahead with it immediately. I will take it seriously. There is another proposal on sub-minimum rates in the minimum wage. We are aware that three quarters of all minimum wage workers are in the retail and hospitality sectors, which is why I want to be careful with any abolition of sub-minimum rates for those aged 18 years or younger. We are examining an impact assessment of the proposal, as the sector is vulnerable at this time. Auto-enrolment is being pushed out to October. The Government has control of this and can give businesses some leeway. Through Indecon, we are also reviewing increases in the work permit regime. Where the additional costs businesses have faced are concerned, all of the above are key measures we have not continued apace.

Halfway through this year, we introduced a package for family businesses in which we reduced PRSI and increased grant aid. We also tried to assist retail and hospitality businesses in changing their operating models. Such businesses are traditional and not at the cutting edge of tax schemes and they practice a straightforward model. We need to determine how we can change that, for example, through energy efficiency grants. I have examined a number of case studies. A small family deli can save €1,500 per month on utilities by upgrading to LED lights and changing refrigeration units. We have a significant grant to support such businesses on that journey. The best way to give businesses money is not to take it from them in the first place. We are working hard to ensure that as many businesses as possible can access the fund this year. We are also trying to support them in digitalising their operating models and adding to their revenue streams. We have a significant grant to assist them in that regard.

The reductions in PRSI are now stitched into the increase in the minimum wage and will ensure no worker on the minimum wage pays the top rate of employer’s PRSI.

The SME test is now at the heart of Government, ensuring every change in statutory instrument, regulation and primary legislation undergoes a strict test to determine how it impacts on the smallest of businesses in our economy, as it is important we protect them. We are looking to expand this test to the wider public service because I deem this a very important matter. Family businesses are the lifeblood of our economy. They employ 70% of workers and drive much of our communities’ economic activity. We are firmly backing them. We are keeping a close eye on their costs to support them however we can.

I welcome the changes to the capital gains tax in support of the intergenerational transfer of assets, for example, passing on the family business. This is important for businesses. We are asking them to invest in decarbonisation and digitalisation, so where a non-cash transaction like this is concerned, the Government should in no way take money from them. Rather, we should support family businesses in transferring to the next generation. This proposal does just that.

It is good to see the thresholds for VAT registration increase. This is an important measure in supporting our small business sector. I also welcome a number of other measures: the increase in the small benefit exemption from two tranches to five and from €1,000 to €1,500; the increase in the earned income tax credit, thereby supporting self-employment in the economy; and measures for start-up companies. It was interesting to hear some business owners welcoming the model we had in place for start-ups and for companies to scale. This will support many high-value jobs and the money we are spending will yield results.

Since the eve of the pandemic, 400,000 more people are working in the economy. That is 400,000 families with an extra income. Over the next year, we will put 100,000 extra jobs into our economy. The best way to resolve constraints and poverty issues and to give communities and families the best lift possible is to offer high-value and important jobs.

Competitiveness is our greatest challenge. We have moved beyond tax for attracting investment and encouraging our indigenous industry to grow. People now consider investments. What are utilities like and what are the prices of energy, water and wastewater? We have to improve in this regard. We brought a memorandum to the Government to ensure investment in this area. We have a large amount of money to put into our grid - potentially €30 billion to 2050 - to ensure we can get energy around the country, be the best country for attracting investment, continue employment growth with high-value jobs and continue to back business.

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