Dáil debates

Thursday, 1 May 2025

Ceisteanna Eile - Other Questions

Business Supports

2:45 am

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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7. To ask the Minister for Enterprise, Trade and Employment for an update on the cost of business forum, which was announced in the programme for Government; and if he will make a statement on the matter. [21680/25]

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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Will the Minister provide an update on the cost of business forum, in particular why so many grants have not been drawn down by small and medium businesses at a time where they are struggling with costs in terms of VAT, rates - including water rates - energy costs, rent and refuse collection costs? The Minister's favourite word is "evidence". There is evidence that at the close of applications for his Department's power up grant in November last year, €12 million was left unclaimed by hospitality and retail businesses. Can he explain why that was the case?

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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My Department’s report on the assessment of the cumulative impact of proposed measures to improve working conditions in Ireland published last year highlighted that many of the recent cost increases for business were related to Government imposed regulatory changes. Business groups have also recently highlighted the impact of the overall regulatory burden and the administrative burden on business.

The programme for Government calls for the establishment of a cost of business advisory forum that will focus, in particular, on the regulatory burden as well as other costs highlighted by business. The recent memorandum for Government on the action plan on competitiveness and productivity also stated that in order to address costs, and so as not to duplicate existing structures, the forum should be established as a sub-group of the enterprise forum.

It is proposed that the cost of business advisory forum will comprise officials from key regulatory agencies, as well as representatives from the enterprise sector and social partners. The aim would be to convene its first meeting before the end of May. It is envisaged that the forum should be output-orientated and not be just a discussion group. This approach would see a finite number of meetings, possibly no more than eight meetings, focusing on individual key themes of concern to the business community. It is proposed that the outcome of the forum will be a report for consideration by the full enterprise forum, written by its chair, outlining a set of policy and administrative changes to improve the cost burden for businesses, particularly small enterprises in Ireland.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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I thank the Minister of State. When he speaks of simplicity and reducing regulation, I want him to look inside Government at the bureaucracy that is stopping businesses which desperately need support from accessing the supports that have been advertised. The increased cost of business, ICOB, and power up grants have been plagued with anomalies in their terms and conditions making it impossible for businesses to access the schemes. Will the cost of business forum, cited in the programme for Government, engage with business representatives to provide accessible schemes which would be of use to businesses?

Rather than an over-concentration in terms of the remuneration of workers' rights, the Government should look in the other direction in terms of why businesses cannot access what has been announced for them. Across our cities, towns and villages, many in our constituency of Mayo, businesses have pulled down the shutters. Businesses are really struggling right now and there is much the Government can do that it is not doing.

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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From having spoken to many businesses that have applied for ICOB grants 1 and 2 and the power up grant, I am aware they were essential grants and have been hugely beneficial across all sectors. The Department approved an overall budget of €257 million as part of the ICOB scheme. Some €246 million of that was expended on the scheme in 2024. On ICOB, this week my colleague, the Minister, Deputy Burke, brought a memo to Cabinet on the appeals process. We understand there were challenges around the misclassification of certain sectors across retail, hospitality and beauty. We have engaged with the Department of Public Expenditure, NDP Delivery and Reform on how we can ensure that those businesses which were misclassified and found to be ineligible for the scheme can reapply. We will take a number of steps over the coming weeks in order to address that.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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We need to learn lessons from the design of a lot of these schemes. I recently met the Alliance for Insurance Reform. Its members are extremely concerned by the recommendations of the Judicial Council that awards be increased by 17%. Could the Minister of State confirm whether the Minister for Justice will enable the Dáil to discuss this?

I also want to raise with the Minister of State the issue of Enterprise Ireland being precluded from working with businesses with fewer than ten employees. Many smaller businesses work on a contract basis and, therefore, work on a different model. Modern work practices mean that businesses often contract in services such as graphic design, photography or social media support. Such employees are not staff of businesses, nor do they want to be. They are freelance workers. Will the Minister of State examine their status with Enterprise Ireland in order that they can support a greater number of businesses? We need systems that support the models that are being used in businesses in the here and now in order to ensure the sustainability of businesses into the future. We have to have practical and pragmatic support and interventions for businesses.

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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I acknowledge some of the matters raised by the Deputy. The Government has made significant progress on the national enterprise hub, which has been established with a key focus on supporting business around training and grant applications.

More than 250 supports are available online and are readily accessible for many SMEs and businesses. The hub covers more than 29 Departments and agencies. It is a vital support for many of these businesses. I compliment the local enterprise offices and all the local authorities on the administration of the ICOB and power up schemes. They are the people on the ground who engage with the businesses and have the knowledge of how businesses are classified and in which sector. It was the first scheme of its kind to be deployed at the scale required to cover all 31 local authorities. We want to establish a future platform that the Department can administer. Our officials are working on that at the moment.