Dáil debates

Thursday, 18 April 2024

Ceisteanna Eile - Other Questions

Business Supports

11:50 am

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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68. To ask the Minister for Enterprise, Trade and Employment if he plans to support those SMEs that are currently struggling; and if he will make a statement on the matter. [16996/24]

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent)
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85. To ask the Minister for Enterprise, Trade and Employment the additional business supports, apart from the increased cost of business scheme, he is considering putting in place, particularly for SMEs to meet the increased cost of doing business; and if he will make a statement on the matter. [17051/24]

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I take this opportunity to wish my colleague from Longford-Westmeath, the Minister, Deputy Burke, the best of luck in his new role. It is a great honour for him, his family, friends and supporters and for all of us in County Westmeath that he has been elevated to Cabinet and I genuinely wish him well in the months ahead.

One of the biggest challenges he has is how his Department is going to support the SME sector. We have heard about the assessment of the cumulative impact of the proposed measures for sick pay and auto-enrolment. One would have thought the Department should have done that report prior to introducing all these changes so they could have been introduced on a phased basis. We talk about the grant that is being paid out now, but I will give the example of Wholesome Kitchen in Mullingar. It is going to get a grant of €3,500 but the measures that have been introduced by Government over the past 12 months have added an additional €155,000 per annum to its business costs. While the grant of €3,500 is very welcome and there is no disputing that, the extra cost is €155,000. What we need to look at, and what I am asking the Minister to commit to now, is splitting the VAT rate between food and accommodation, lowering the VAT rate and also ensuring the PRSI rate recognises the fact the minimum wage has increased.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The Minister has asked me to thank his colleague, Deputy Troy, for the good wishes. We will bring forward further supports in addition to the €250 million. We are looking at the PRSI issue for action in the coming weeks. Other issues are budgetary matters and will be considered in the context of budget discussions. I refer to our track record as a Government and the incredible support the Deputy gave businesses during his time in this Department. That track record of direct, proactive support will continue. We will put that into place, beginning with a package in the coming weeks. That is in addition to the those figures, which I keep returning to, because we want to see business with a bigger take-up of it. If there is a bigger take-up for this programme, it will strengthen our case for further funding for businesses. I ask all Deputies to encourage businesses in their areas to do that.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I do not doubt the Minister of State's commitment or the Minister's, but businesses need help now. The cold, hard facts are this money was announced in the budget six months ago and it only opened for applications in the past number of weeks. Businesses are suffering now. They need help now and they need a dedicated focus on how they can be supported. The number of businesses closing weekly is phenomenal. We need the supports now and we need priority given to this now.

I welcome the commitment given on PRSI changes to recognise the increase in the minimum wage but we also need to look at other measures. I gave the example that the measures introduced over the last 18 months are cumulatively costing a fabulous business in Mullingar, County Westmeath, Wholesome Kitchen, €155,000 a year. The grant the owner will get is €3,500. There is an imbalance there. I accept the commitment given today that additional supports will be forthcoming. PRSI changes are needed as soon as possible. Among other things, we also need to look at splitting the VAT rates for food and accommodation and at lowering the rate.

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Written Answers are published on the Oireachtas website.