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

I thank the Deputy for his very important question. We know small family businesses are the backbone of the economy. They employ two thirds of all employees in our country and drive so much vital economic activity across many of our communities. In the first few weeks of my appointment as Minister for Enterprise, Trade and Employment I introduced an SME package which brought a second round of the increased cost of business grant, really focusing on retail and hospitality, the sectors which are very vulnerable according to our cross-departmental report. We also reduced PRSI for lower-paid workers. Approximately three quarters of national minimum wage workers are in retail and hospitality. We increased the threshold for Microfinance Ireland and it has now kicked in. We signed a statutory instrument to bring it up to €50,000. Take-up in that regard has been very strong. I met with the chairperson and chief executive this week to underwrite that.

Our energy efficiency grant is up to €10,000. Some of the money businesses will get from the power up grant and the previous increased costs of business grant can be used because the portion of 25% is only required now of that €10,000 in capital costs. I have seen real-life examples of this. We are talking about lowering the cost base of business. If a business upgrades its LED lighting, refrigeration or dishwashers for energy-efficient equipment, it can reduce its energy bill by €1,500 a month for a small deli, for example. That is very significant and it lowers the cost base.

We hope to get final approval today from the Department of public expenditure and reform for the power up grant. That will be another €4,000 payment directly into the bank accounts of small businesses right before Christmas. On average, small businesses will have received between €8,000 and €10,000 in the past six months. Considering the margin on which some of these businesses operate, many of them would have to amass more than €80,000 in sales to make a margin equivalent to that direct cash intervention. We have a lot more to do. The SME test will stop much of the regulatory burden which has hit small businesses in recent years. Since coming into the Department, I have led from the front on family businesses. I have prioritised them and tried my very best to lower their cost base. We need to work together to give them the tools and make them aware of all the supports that are available.

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