Marie Sherlock (Labour) | Oireachtas source

I thank the Minister of State for coming to the Chamber. My question relates to the increased cost of business scheme which was announced as part of budget 2024 by way of response to rising costs for businesses and the increase in the minimum wage. Most of us recognise employers face increased costs. I question the untargeted, once-off and exclusionary nature of the support. I understand non-rate payers will not qualify for the scheme. I would rather see the Government moving away from the once-off payments and thinking about how to support businesses and quality employment in a longer-term manner. When we spoke to Low Pay Commission officials last week, we asked them to look at longer-term support to businesses, in particular the use of the State’s procurement budget of more than €17 billion and how the might of the State can be used to support quality jobs, decent pay and businesses in our communities.

My question concerns the rates rebate within the cost of business scheme. We have not seen much detail to date. The chair of the Low Pay Commission referred to the rebate last week. What will be the arrangement with local authorities to make sure they are not out of pocket? In budget 2024, local government only received €29 million extra in funding and that was largely for increased supports to the fire service and for the directly elected mayor. When we talk to councillors, they tell us of significant needs in their local authorities for additional funding. Rates make up an important part of the revenue that local authorities generate for themselves. There is an issue with the administration of a rates rebate, the cost implicit in that and the funding shortfall that will arise for many local authorities. What arrangements will be put in place? What will be the timing of the rates rebates? What will be the scale of supports to local authorities with regard to the scheme?