Peter Burke (Longford-Westmeath, Fine Gael)

I propose to take Questions Nos. 9 ,10 and 16 together.

I thank the Deputies for these important questions on the SME sector. Ireland's SME sector has faced a number of economic shocks in recent years and these have resulted in very significant cost increases. While most of these have been international in nature, with energy price inflation the most significant, there have been costs associated with domestic measures, including policies aimed at improving working conditions. Although there have been improvements in wholesale price inflation, business costs and especially energy prices remain elevated. Our small size and peripheral location contribute to higher electricity prices in Ireland. We also have a widely spread, low-density population, which means that network and connection costs are higher.

The Government has been active in providing support for businesses facing increased costs over the past several years. In April 2024, I announced a substantial package of measures that continue to aid firms. These measures included increased payments under the innovation grant scheme and the energy efficiency grant scheme and the implementation of an enhanced SME test on Government decisions.

The National Enterprise Hub was launched in 2024 and has been designed as an entry point to aid businesses to find relevant supports and help for their business. Most recently, budget 2025 provided for the introduction of the power up grant and introduced changes which reduced costs by means of the increased employer PRSI threshold. The programme for Government set out a commitment to establish a cost of business advisory forum. The first meeting of the forum took place on 11 June where numerous organisations representing Ireland’s enterprise sector were joined by officials from a variety of State agencies and Government Departments. It is anticipated the forum will meet regularly over the coming six months, with each meeting devoted to a distinct area of concern to businesses, including business costs, infrastructure and regulation.

In response to international economic developments and in line with other commitments in the programme for Government, we have also accelerated the timeframe for the development of the action plan for competitiveness and productivity. The action plan is currently being prepared and discussions on competitiveness will be had at the summit in July. The plan will focus on domestic policy measures, which can make the Irish economy more competitive and resilient to economic shocks. It is expected that the plan will address areas that are currently impacting on the ability of SMEs to compete internationally, including costs, SME scaling and increasing the rate of research, development and innovation among firms, which will be critical.

We have taken a number of actions over the past months since my appointment as enterprise Minister, and we will continue in that vein. We are coming to our fourth piece of omnibus legislation in an EU context. At the heart of that is doing things, as I mentioned, simpler, faster and lighter. We need to bring that to the heart of the enterprise sector. The Deputy will be aware we have taken a number of decisions on sick pay, the trajectory to a living wage and trying to ensure businesses remain viable so employment can be retained at the significant point it is. He will be aware also that we have increased employment by approximately 90,000 over the past year. That is 90,000 families with an additional income going into them. We all know that high-value jobs are the best route to meet one's ambition in life and to give everyone a fair chance. We are focused on delivering that.

At our competitiveness summit we will have a significant focus on infrastructure. Working with the Minister, Deputy Chambers, we are trying to put together a competitive fund within the Department. We know the priorities of the current national development plan review are housing, water and wastewater, energy and our competitiveness. Those are the four key areas. That is why, as a Government, we need to prioritise those with a laser focus because if everything is a priority, then nothing is a priority. We need to be clear on that and send that signal strongly to the enterprise sector. We are also focusing, in the context of budget 2026, on our value proposition as a country. It will be key for the SME sector. Taxation changes like VAT will be important for the hospitality sector. It is important in the programme for Government talks that we work towards and deliver on those to ensure we are giving a strong stimulus to those sectors that are most vulnerable. We know across the economy that approximately three quarters of all minimum wage workers exist in retail and hospitality. That is a significant challenge to those businesses because of the regulatory impact it has had. No other Government has done as much for employment rights and supporting the well-being and rights of employees, but we also have to be cautious to ensure businesses remain viable on that trajectory. That is why it is key in decisions taken to ensure that and to ensure businesses continue to grow and prosper. Last week, subject to the establishment of our small business unit, we had our first meeting of the cost of business advisory forum, which had a huge turnout from many of the regulators and a lot of the State agencies. We need to be clear that we are charting a pathway forward. The interoperability of some of these rules and regulations set by independent regulators from different areas and how they impact on the costs and viability of business can be significant. We need to take a number of actions in that regard. That is why the outworkings of that forum will be critical in delivering the Government's vision of supporting our SME sector and keeping that growth.

As I always point out, and as I did in reply to Question No. 2, many of these businesses that employ two thirds of people across our country are operating from the kitchen table. They do not have a finance director or HR director. They are doing all of that work themselves. They are working from five to nine and we in government need to everything to vindicate their efforts and ensure they remain viable, which is key to our economic success.

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