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

I thank all the Members for their interventions on a topic which is very important to our local economies in protecting our SME sector. We all know the economic activity they provide in our communities is very much valued by the Government. That is demonstrated by the policies we have put in place to support them in recent years.

First, I will raise the increased cost of doing business grant. It is a very important grant. I know the lifeblood of businesses is cash. It is so important that they are supported. It is vital that where there are any mitigation measures we can put in place, we do so. The increased cost of doing business grant is a maximum €5,000 payment for those with rates under €30,000. So many businesses qualify -127,000 businesses up and down the country are eligible. We need them to apply. It is a very simple, one-page application which asks for very little information. The payments will be going out shortly. It is so important that businesses register for the grant and draw it down as it will assist them.

As I go about trying to frame and prepare a package for small businesses in the coming days and weeks, it gives me a strong argument to go back to the Department and say that this money is being spent and that it is being drawn down. I do not want to go back and argue with the Minister for public expenditure and reform and for him to tell me he has given €0.25 billion for the SME sector that has not been drawn down. We want to appeal to businesses on this. I ask Senators to market that grant and to work with small businesses in their communities and assist them. It is there for them and we want them to get it. We will work with them knowing that it is not enough but that we will work with them on a package that will come forward in the days and weeks ahead.

When I started working as an accountant in a busy practice in Mullingar in 2008 to 2010, we were in a very different situation. When business owners came in to our practice, one of the first decisions they were making was how many members of staff they would have to let go to keep their business viable. Would they weather this storm? We are in a very different position now from then and we can never go back. We are in a position now where 2.7 million people are employed and we have a very strong economy which is still growing. There are so many women in the workplace, which is incredible, because of supports the Government has brought in such as remote working and how we are trying to transform how we value everyone in our economy. It is so important we continue on that trajectory. We see data coming in on improvements in employment numbers in recent years, which is quite striking. There number of people working in our economy over the past three years has increased by a couple of hundred thousand and it is important that we maintain that.

From speaking to small businesses, I know the accumulated costs of the valued interventions we have made as Government in an effort to improve solidarity in the workplace and show that employees are valued and we are trying to improve their conditions, especially lower paid workers. Some of those accumulated costs have been striking for businesses. There is a trajectory which features measures towards the living wage, important sick pay rules, going through the remote working process. Take the minimum wage. From 2016 to now, the average increase has been 3.4%. Last year it was 12.4%. That is a significant increase for employers to bear the brunt of. The legislation has commenced in the Dáil on auto-enrolment. There is an extra public holiday. There is some very important leave, such as parental leave to try to make family life better and improve conditions but we want to work with employers to ensure their viability is in no way impacted by any of those measures. We will do that in the days and weeks ahead.

There are some important interventions such as the 9% VAT rate on gas and electricity up to October. That is significant. The energy efficiency grant is also very important. A small café, hospitality business or deli can change its fridges, lighting or kitchen operation. Every month, they will feel the benefit from that capital intervention. We as a Government want to help them, and do it immediately.

Senator Byrne raised the research sector. It is important that we are committed to the patent referendum. The legislation had not passed through the Houses and we are less than eight weeks before the date of the referendum. With so many elections, it was a crowded field for media attention especially in a technical debate. That is a huge challenge but we are committed to bringing forward the referendum. It is very important to remember that our research community has received so much from our last budget including the increase in the R&D tax credit to 30%, increasing the first payment up to €50,000. All those interventions show we are fully committed to working with them.

Future-proofing policy for SMEs will be crucial. Whether it is a statutory instrument or primary or secondary legislation, we need to know it passes the test for SMEs that they will not be impeded by it. We have a test to identify affected businesses and, working through consultation, doing an impact assessment and mitigating where we can.That is one of the things I want to bring forward very strongly. All Departments will have to carry out an SME test before they bring forward any regulation. We need to think small first and consider the backbone of our economy, namely those family businesses that are working so hard creating economic activity. I am absolutely committed to doing that.

On other matters, as I said, we have increased the VAT threshold. Access to finance is going to be very important into the future in order hat we can assist businesses to get the cash they need. It is so important to keep them ticking over.

As I pointed out earlier, business failure is something we cannot take for granted. We are still at a rate of about 27 in 10,000 in terms of business failures. Before the recession, at times it was up near 36 and 40. We have not got back to that level, but we want to be very careful and ensure that we monitor everything that happens in our economy and that we hear from businesses. Our LEOs are doing such fantastic work in the context of mentoring. We do not want any businesses to fail without having got the support of the State, connected with their LEOs, talked to them and identified what opportunities they may have, be it help with online marketing, whatever strategy they are embarking upon or whatever financial options are available to them. Mentoring is a key aspect of our process.

Senator Keogan referred to social enterprise. I will refer that back to the Minister, Deputy Humphreys, whose very important brief is strongly connected to it. Our LEOs can obviously link in with that process. We are very much committed to working with our SME sector. We know exactly what it takes for SMEs to succeed. I will be working with and listening to them over the coming days and weeks. I will chair the hospitality and tourism forum with the Minister, Deputy Catherine Martin, in May. It is very important to hear from that sector and from all of our restaurants and valued small businesses within it. We will work with them.

There is a large campaign under way in respect of the VAT rate. That is something we will take seriously. We will listen to them and look at the options. There is significant cost attached to it. That would be a budgetary measure between ourselves, the Minister for Finance and the Minister, Deputy Catherine Martin. We will work with them and look at all the options. I do not want to make any promises. That is something I do not do as a Minister. I want to be very honest and realistic with people. We will fight for them. We will do our very best. We want to work with them every step of the way.

As Senators pointed out, it is shameful that Sinn Féin has not turned up for this debate. Sinn Féin Deputies had the gall to come into the Dáil last week and comment on our new Taoiseach at a time when he was ringing world leaders trying to cement Ireland's place on the global stage and doing very important work. When a new Taoiseach is nominated, they would normally have a week to read themselves into the brief and connect with world leaders and European leaders. Sinn Féin has failed to show up for a very important debate on our SME sector. That is shameful and it should be called out by everybody.