Ollie Crowe (Fianna Fail)

I welcome the Minister of State, Deputy Dillon, to the Chamber. Fianna Fáil believes in the vibrancy of the SME sector. It is critical to Ireland's future economic success. With 99.8% of all businesses in Ireland being classified as SMEs, it is essential for the overall health of the economy that we do as much as possible at all times to support their continued growth and development. As I have often stated in this House, they are the backbone of the Irish economy and are particularly important in towns and villages across the country where the local shop, restaurant or bar is one of the few employers in the area. These jobs are very unlikely to be replaced if the business is no longer viable. That is why it is important Government continues to support such businesses. We hear so often about multinationals and our efforts to attract and retain them, as we should, given their importance. However, it is also important to remember that two thirds of the working population in the private sector is employed by SMEs.

There is a significant challenge in the retail sector in relation to online giants, with more and more people doing their shopping from home. It can be especially challenging for SMEs to have a competitive digital presence. The trading online voucher scheme has been a significant help. It has assisted many small businesses in Galway that use the scheme and I know it has made a meaningful impact for them. We should look at strengthening the scheme further, perhaps allowing for a second round of funding after a number of years, which would enable businesses to update their digital presence or maybe allowing the businesses to advertise. Having a digital presence only helps if people are aware it exists. It is a positive scheme and I would like to see it enhanced any way we can.

There are a number of other supports for the retail sector, including the energy efficiency grant, which now offers grant assistance up to a maximum of €10,000, and the grow digital voucher, which offers up to €5,000. These are important and needed supports.

The other major challenge facing retail is retail crime. It costs the sector around €1.6 billion every year. It has been estimated that retail theft costs a medium-sized grocery store up to €100,000 each year. These are astounding figures and this harms us all because retailers have to increase their prices to make up for this loss. The programme for Government commits to publishing a retail crime strategy with targeted actions to reduce retail crime and support affected businesses. The Department of Justice, Home Affairs and Migration has commenced preparation of the strategy. Given the figures above, this is clearly hugely important. I know there have to be consultations, which will take some time, but I hope the Department will be able to prioritise this and complete it as soon as possible, given the urgent need. The programme for Government makes a number of other commitments in relation to tackling the scourge, which are ongoing. It is to be hoped all this combined work will put a dent in the issue in the coming years.

The programme for Government committed to bringing forward measures to support SMEs, in particular the retail and hospitality sectors, acknowledging the increased cost pressures on the sectors. I expect to see this in budget 2026. As I have said previously, we need a scheme to support our pubs in particular. I believe we are all familiar with the figures over the past 20 years. Two thousand pubs across the country have closed their doors. Outside of Dublin, the number of pubs in Ireland has fallen by 25% in that period. Without support for pubs in budget 2026, there is no doubt the rate of closures will accelerate, resulting in the loss of excise revenue, damage to communities across the country and our tourism offering being significantly weakened.

Members will recall that I previously offered the example of France, where so many rural bars closed that the Government is now offering incentives to revive them, recognising their cultural and economic value. Without Government intervention, we in Ireland are on the same path. Ireland has the second highest excise rate on alcohol in Europe, with taxes accounting for almost 30% of the price of a pint. That is simply no longer sustainable and has not been for some time, as the closures every year reflect. I hope budget 2026 will address and support this vital industry.

The establishment of the small business unit in the Department of enterprise was a welcome and positive measure. I hope the unit will ensure the Department is consistently mindful of SMEs when making policy. It is a welcome sign that SMEs will be prioritised by this Government.The SME test that will be implemented by this unit and that will consider the impact on SMEs before new legislation or regulations are introduced is a much-needed initiative. It will locate SMEs as a much more important part of policymaking, rightfully recognising the enormous contribution they make to the Irish economy.

There have been some positive developments in the context of what the Government does to support SMEs throughout the country during its first year in office. However, there is, of course, more we can and should do. Debates like this are really valuable for pursing that goal. I hope we can continue to have such debates on a regular basis.