Maria Byrne (Fine Gael)
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I welcome the Minister, Deputy Burke. I thank him for coming to contribute to this all-important debate - statements on budget 2026. The Minister has ten minutes for his opening statement.

Peter Burke (Longford-Westmeath, Fine Gael)
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I welcome the opportunity to address Senators today and make a few comments regarding budget 2026, particularly the budget measures that relate to my own Department. Budget 2026 is a strongly pro-jobs, pro-enterprise budget. The signal has gone out that Ireland is a fantastic place in which to do business, to scale and to invest. We must ensure that our economy and workforce continue to reap the benefits that the enterprise economy brings.

The budget demonstrates the Government's commitment to ensuring that our economy delivers for our citizens and that we support our people and businesses through investment and sensible management of our finances.The fact that we have a record number of over 2.82 million people in work and that our economy continues to enjoy very healthy levels of growth, notwithstanding strong geopolitical headwinds, is a testament to the hard work of the Irish people and the benefits of Government budgetary policy.

The package of budget measures announced continues our dual approach of safeguarding the national finances while also providing supports to targeted areas. Our aim as a Government must always be to improve the lives of our people. Focusing on quality employment and keeping businesses viable provides a pathway for people to access meaningful opportunities which provide economic stability and enhance quality of life.

Resilient, productive economies do not happen by chance, and our business ecosystem requires smart intervention to future-proof our industries and jobs. We have seen how careful, considered management over the last decade has strengthened our economy, and we must continue on this pathway to ensure we do not get complacent as we prepare to take advantage of the next wave of technology and advancement.

The reduction in the hospitality VAT rate to 9% will benefit all food businesses, which are integral parts of every town and village in the country, providing valuable employment in their local communities. While a significant support, the hospitality VAT rate reduction amounts to 18% of the overall tax package and is an appropriate lifeline to our hospitality SMEs when it comes to viability and value. This sector accounts for almost 200,000 jobs, with many of those workers on the national minimum wage. Some 75% of these businesses have fewer than ten employees and just 0.4% of hospitality SMEs are considered large businesses or food chains.

I will now outline some of the other pro-business tax measures in budget 2026. There is an increase in the rate of the R and D tax credit from 30% to 35%, which will be of huge benefit to our innovative industries, increasing investment and employment in pharma, medtech, engineering and more in the coming decades. I am determined that more indigenous SMEs can access the R and D tax credit, and changes have been made so that the threshold for first-year refunds will increase to €87,500 to support smaller projects. We have increased the capital gains tax, CGT, revised entrepreneur relief lifetime limit from €1 million to €1.5 million, at a rate of 10%. We have increased the employer PRSI threshold to ensure that employers do not pay the higher rate of PRSI for full-time workers earning the proposed increase to the national minimum wage. We have made amendments to the digital games tax credit to support the life cycle of video game development. We have extended the special assignee relief programme, SARP, for a further five years. There are changes to foreign dividends rules. We have extended the key employee engagement scheme to the end of December 2028.

These measures, when taken together, strongly signal Government’s commitment to the pro-enterprise vision espoused in the action plan on competitiveness and productivity which I launched with the Taoiseach and Tánaiste last month, as well as the action plan on market diversification. Both comprehensive plans signal the pathway forward for Irish SMEs as we navigate changed geopolitical trading environments.

The Government has endorsed the recommendation of the Low Pay Commission to increase the minimum wage to €14.15 per hour. In coming to its decision, the commission took a number of factors into consideration, including the potential impact of any increase on employment and competitiveness. The 4.8% increase in the minimum wage is not dissimilar to the overall expected increase in wages across the economy next year, and will benefit 200,000 workers across the State. The Low Pay Commission is made up of both employee and employer representatives and delivered this unanimous recommendation, which Government has accepted and will now implement.

I will now turn to the resources allocated to my Department under budget 2026, resources that will enable us to deliver on our strategic priorities for enterprise, innovation, and tourism. This year, we have secured a gross allocation of €1.298 billion, made up of €618 million in current funding and €680 million in capital funding. Under the national development plan, our capital envelope of €3.68 billion, augmented by agency-generated income, will allow us to invest nearly €5 billion over the next five years. This funding will support both existing programmes and new multi-annual investments aligned with the programme for competitiveness and our actions through government.

We are investing in next-generation foreign direct investment, FDI, sites, scaling indigenous businesses through a new scaling fund, with €120 million allocated to support Irish participation in European innovation projects like IPCEI, or important projects of common European interest.We are also expanding technology centres, boosting European Space Agency contract opportunities, and driving innovation through the disruptive technologies innovation fund.

On the current side, the €618 million allocation will support the establishment of the national Al office, enhance tourism development and strengthen operational capacity across our agencies. It will also ensure we are ready to lead during Ireland's EU Presidency in 2026, including our role in shaping the European Competitiveness Fund. These investments are strategic, targeted, and essential to securing Ireland’s future competitiveness.

On the tourism side, we will receive €70 million in national development plan funding over the coming years, and later this month I will be launching our landmark new tourism strategy. The strategy will expand the remit of Fáilte Ireland, include plans around our new national culinary strategy, as well as laying out our ambitions and targets around business events and tourism. Ultimately, we will be introducing key performance indicators to ensure that our SMEs remain at the very heart of our tourism offering and that they can grasp the opportunities tourism presents for our local economies and our indigenous enterprises.

The expenditure and taxation measures announced in budget 2026 have been framed in light of the need to moderate the level of public expenditure increases while also targeting those areas where support is most needed. The taxation and expenditure announced in the budget will ensure that we can continue to grow our economy through increasing our competitiveness and productivity, delivering quality jobs and diversifying across international markets to mitigate against economic shocks. In today’s volatile global economy, we are keeping a laser focus on supporting Irish SMEs, regional development, innovation and tourism to ensure Ireland remains resilient and competitive, and so that quality job opportunities remain available to our citizens. The 2.82 million workers in our economy must be protected through every available means and budget 2026 has job protection objectives right at its core.

Linda Nelson Murray (Fine Gael)
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As a spokesperson on enterprise here in the Seanad I very much welcome the opportunity to speak to the Minister today and to the budget for enterprise and tourism, which we learnt of last week. I thank the Minister for taking the time to join us here.

Ireland's overall international competitive position is strong and currently ranks as the seventh most competitive economy in the world. Ireland has experienced a decade of very significant economic expansion, a strong increase in population, rapid gains in employment and a substantial rise in energy demand. The Minister has been quoted as saying, "Where businesses thrive, jobs follow." This budget of €1.3 billion has invested in Ireland's enterprise base, regional development, innovation, tourism and long-term competitiveness. We have a volatile global economy and we do not really know what is around the corner, so using a budget to focus on supporting enterprise, regional development and tourism is a good call. It is vital that we protect the 2.82 million jobs in our economy. Some of the measures include: a hospitality VAT reduction for food catering and hairdressers from 13.5% to 9%; a research and development tax credit increase from 30% to 35%; capital gains tax was revised; an extension of the special assignee relief programme; the extension of the key employee engagement programme; enhancements to the digital games tax credit; and relief on foreign earnings was extended to the end of 2030.

I am particularly delighted to see enhanced funding for tourism bodies and local enterprise offices. In Meath we have a fantastic tourism body, namely, Boyne Valley Tourism. The Boyne Valley, birthplace of Ireland's ancient east, is steeped in history and it is a really special destination. The board does fantastic work to promote our area, so investment here is very welcome. Likewise, in our local enterprise offices. The Minister attended the launch of our new Thrive Centre of Business Excellence in County Meath only a couple of weeks ago. The Minister will agree it was a super evening. The Thrive Centre of Business Excellence will serve as a central hub for supporting and attracting foreign direct investment into the county. The new 21,000 sq. ft facility will offer improved supports to businesses, from start-ups and small SMEs to larger companies operating on a global scale. I offer my congratulations to Meath County Council and the Minister's Department on the centre.

In other parts of the budget we saw the proposed establishment of the AI office in Ireland, which will be a landmark step in positioning Ireland as a leader in responsible AI adoption, while also helping our competitiveness and growth. As the Minister mentioned, at €1.3 billion this budget represents €618 million in current funding and €680 million in capital funding under the national development plan. Total capital investment into the enterprise sector in 2026 will be €800 million. The budget targets key priorities identified in the programme for Government and the action plan on market diversification and competitiveness. Additional priorities include €100 million to prepare large-scale regional service locations for future FDI, an additional €50 million to scale centres and drive innovation, and €70 million to develop our Irish tourism SMEs and attractions. There is no doubt this is an ambitious budget for enterprise and tourism but right now, I would like to move on to small businesses. In our action plan for productivity and competitiveness, which was produced ahead of target, one of the six thematic challenges is creating and scaling more SMEs. We are repeatedly saying in government that SMEs are the backbone of the Irish economy. The Minister of State, Deputy Dillon, has said supporting small businesses and sustainable jobs remain at the heart of the Government's commitment to a strong economy and that is very much backed up with the VAT reduction, enhanced local enterprise offices, investment in innovation and scaling. I also very much welcome other improvements like improved access to supports by the national enterprise hub.

Unfortunately, businesses are working at reduced hours and closing early because of cost. They do not open Mondays and Tuesdays and I will include our own business in that. They are faced with increased rates, there are 17,500 fewer jobs in retail this year versus last year and we have seen an increase of 112% in insolvency between quarter 1 and quarter 2, one in four of those being retailers.

Minimum wage, which is good news for employees and news that employers welcome for the people who work hard for the business, will unfortunately put them under pressure. I do not know any employer who does not want their employees to be rewarded for their hard work but it is about being supported to do so. There has been a 44% increase in minimum wage in six years.

My colleague in the enterprise committee, Deputy Clendennen, ran a survey on small businesses and the number one impact was wages, the second was the cost of raw materials, the third was the cost of energy, the fourth was tax demands - which in fairness restaurants, cafes and hairdressers have been looked after - and the fifth was insurance premiums. It is important, having listened to these businesses, that we take on board what they have said.

I spoke to one business today that has gone from a profit of €200,000 in 2022 to €15,000 in 2024. This business owner has not taken a salary in the past year to keep the doors open. Their business has changed. The world of online shopping and cheaper Asian imports has had a dramatic effect. Walking down the main street in Navan, when I read this budget and listened to the Minister, I thought of Geoghegans clothing and curtain store, Reign Boutique, Chislers Boutique, Tierney's Newsagents, Connollys Seafood shop, Sorella Boutique, Ribbon Rouge, Tara dry cleaners, Balance Clinic and beauty spa, Jack Kiernan sport shop, Cordners shoe shop, David's Family Butchers, Henry Loughran's pub and Fitzsimons pub.

These businesses are retail, pubs and beauty salons. I worry for them and I worry we need to do more for them. Perhaps we might have thought about beauty along with hairdressing. Many hairdressers also offer beauty and I believe the numbers employed in both are roughly the same. I worry for Navan town and every town with increased cost of doing business. I would like us to reassure all these businesses - I know the Minister does - that we have their back and that this budget will, in turn, help all these businesses and that we have not finished here.

I welcome that we are going to cut the red tape on the length of forms for LEO grants under €3,000. That is brilliant. We need to push more Irish businesses to take up the research and development tax credit. We need to focus on SMEs and how we can support them with grants and business advice. Could we look at supporting small and rural retailers, pubs and beauty salons to level the playing field? Can we look at reducing business rates for businesses and sectors under severe pressure and in particular when there are roadworks happening?

I heard of one business last week which lost 70% of turnover because right outside the door the street was being dug up. In my own town of Navan, we have an amazing plan in the Navan 2030 project. There is so much work being done to make our town a better place to come to but businesses that are already on the edge suffer during this phase. Could we offer energy supports for struggling businesses, apart from the upgrade to cleaner energy which is of course very beneficial? Can we examine fair trading practices? Could we offer locational zoning protections for town centre shops versus out-of-town developments? Could we ensure transport access? I feel it is very important to be able to park outside a shop. Could we also have another campaign to encourage shopping local, which I know we do very well every year? Maybe we should do one again.

Finally, we should ensure small retailers have voices and policy information in order that regulation does not inadvertently disadvantage them. I know the Minister meets many of them on a monthly basis. I thank him for his plan and for protecting jobs and businesses with this budget. Some €1.3 billion is a massive statement and a massive investment. As I said earlier, protecting small business remains at the heart of this Government commitment.

I look forward to what we have promised businesses in our programme for Government, which includes bringing forward measures to support SMEs with changes to PRSI, reduced energy costs for businesses and making sure business policies do not hinder jobs and do not hinder businesses. I very much look forward to working on all these with the Minister.

Aubrey McCarthy (Independent)
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I thank the Minister, Deputy Burke. I reiterate what Senator Nelson Murray said to welcome him to the House. I thank him for engaging with us on budget 2026.

The budget arrives at a very important time for Ireland. I am a member of the enterprise committee so I know what is happening out in the real world with the small firms, the family businesses, the cafes, the florists and the hairdressers. You can certainly see the pressure mounting. People are working harder than ever before just to stay in business. One statistic came to us at the enterprise committee a few weeks ago which said many businesses are six months away from shutting down and they definitely need supports.While the official economy looks stable, that is simply not what we are hearing on the ground or what people are experiencing. When we then see the global landscape shifting rapidly, and that we are facing higher interest rates, soaring costs and low confidence, we can see that uncertainty is everywhere, from the war in Europe to worldwide trade tensions regarding tariffs, as we have discussed in this House many times. As a small, open economy, Ireland is squarely in the middle of all this, facing all the headwinds of this turbulence. I do not envy the Minister’s task and I know this moment in time demands leadership. It demands a clear path to protect Irish jobs and strengthen our enterprises. Our small and medium enterprises are the true backbone of this economy and they are under immense strain. We see that weekly in the enterprise committee. These are the people that open the shutters every morning, pay the pay cheques at the end of the week and sponsor the local football team. For them, everything seems to be getting tougher. As we have discussed before, energy bills are getting excessive, access to finance is tightening, insurance costs are crippling and, on top of all of that, there is a lot of bureaucracy and red tape. I am sure the Minister is aware that these are the daily realities for people trying to keep their doors open.

Budget 2026 was an opportunity to show real belief in these people, but I do not believe it went far enough. Our indigenous enterprises deserve the same level of confidence and commitment we often show multinationals. What the Irish and the IDA have done regarding attracting foreign investment is phenomenal. It has transformed Ireland, created jobs and put us on the global map, but it is also dangerous to rely heavily on a handful of global corporations for our tax base. I live in County Kildare and God help us if Intel or Pfizer or other such companies leave. One change in global tax policy or shift in corporate strategy, as we have seen recently with the US and pharma issues, and we could find ourselves deeply exposed. Strengthening our domestic business space is key. It is not just about economics but also safeguarding our national resilience.

One issue I brought up in this House before is the deemed disposal route on index funds. I had hoped that would be addressed in the budget. It perfectly illustrates how outdated parts of our system are. While it sounds technical, if we look at the mechanics of it, it is fundamentally unfair. At the moment the Government is introducing auto-enrolment to make sure that people plan ahead. At the same time, we penalise ordinary savers who have done the right thing and planned ahead, in trying to build security for their families. Every eight years they are hit with a tax bill on profits they have not even cashed out on. That in itself seems senseless and discourages both investment and long-term saving. Fixing this would not cost the State a huge amount of money, but it would send a powerful message that Ireland supports those who plan ahead, take responsibility for their future and believe in building for it.

While also discussing enterprise, one thing that is key to our committee is tourism. Tourism is also one of the key features of the Irish economy, and from Killarney to Kilkenny, from the Wild Atlantic Way to the Wicklow mountains, etc., tourism sustains our towns, employs many people and injects energy into every corner of the country. One figure came across our tourism spend. The numbers are similar but the tourism spend has reduced drastically. Therefore, many small operators are close to the brink. We need targeted, smart supports without layers of complicated schemes that seem impossible to access. We need to focus on sustainable tourism that brings life to all the regions of Ireland all year round, not just for the summer months. When we talk about enterprise, we are talking about real people, and behind every budget line and policy there is a human story of a worker, family or student.When a small business closes, as Senator Nelson Murray mentioned, it is not just a balance sheet loss, it is the end of somebody's dream and livelihood in a locality. Often, a whole community suffers. That is why we need to focus on enterprise policy as social policy. The Minister visited a social enterprise that I started in Greystones and was very receptive to what we do there. It shows that if we back small businesses, we back families, towns and opportunity. I urge the Department and the Minister to adopt a whole-of-government approach and to get serious about investing in, upskilling and transforming our workforce through innovation in order that Ireland can be the best small country in the world in which to start, run and grow a business, not just for multinationals but for the people who call this island home. We cannot afford to wait for the next crisis before we act. I have spoken in this House about the need to strengthen the younger entrepreneurs that are coming behind. The next Collisons are probably leaving school now, so we need to focus and make sure those people are empowered to start their companies here. The true measure of a successful budget is not how it looks in the Department's report but how it feels in people's lives. Let us ensure that budget 2026 delivers not just numbers but hopes.

Ollie Crowe (Fianna Fail)
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I welcome the Minister and thank him for joining us to talk through budget 2026 from an enterprise, trade and tourism perspective. The budget was very positive for Irish businesses and companies that have invested in Ireland. It reflects the Government's commitment to supporting our businesses and its determination to continuously attract foreign direct investment that will further strengthen the Irish economy.

Our economy has rebounded well from Covid but it is important not to take that for granted, particularly in light of the challenges from a global perspective. I welcome, in particular, the VAT reduction for the hospitality sector. As the Minister will be aware, the current 13.5% VAT rate in Ireland is one of the highest rates on food services in the EU. The industry has faced spiralling costs in recent years, leading to a raft of closures. We also have data which makes clear the impact this has had on employment within the sector. The labour force survey for quarter 2 of 2025, which was released in August, made this obvious. Hospitality employment stood at 181,000, down from 184,200 in the same quarter of 2024. This is a 1.7% reduction year on year. By way of comparison, total national employment grew by 2.3% in the same period. The labour force survey also shows that full-time employment in hospitality fell by 6.7%, which is very worrying. It should also be noted that these are frequently jobs in small towns and villages that are very difficult to replace and that have an outsized impact on local economies. I know from speaking with hospitality businesses in Galway city and county how much pressure they have been operating under in recent years and how incredibly tight margins have become. It should also be acknowledged that the industry is vital to the regions, particularly to small towns and villages where cafés, bars and restaurants serving food are often the main employers. Such businesses are also a resource to their local communities. They provide premises for events and when they close, communities are often left without a suitable venue to host confirmation, communion, and birthday celebrations as well as sadder occasions. These businesses are not just important to the families who typically run them but also to the communities they serve.

Anyone with any knowledge of the hospitality industry will recognise that in the absence of Government action the sector would have continued to struggle and would have faced ongoing closures. The move has been met with criticism in certain quarters from those who have used examples that are outlandish and that ignore the thousands of small family businesses across the country that employ tens of thousands of people. The VAT reduction is a vital and essential measure for an industry facing considerable challenges. I acknowledge that the Minister, Deputy Burke, pushed strongly for the reduction. The rate is due to be introduced from 1 July next year. Ideally, however, the reduction would be introduced earlier in view of the pressures businesses are facing, such as high inflation, sick pay costs, pension auto-enrolment and so on. Is that possible or is the July date effectively set in stone? I previously raised with the Minister the issue of excise duty on draught products for rural establishments and alcohol-only, non-food pubs. A small investment there would have a significant return for pubs across the country. I ask the Minister to consider that.

The efforts to strengthen regional development from an enterprise perspective in budget 2026 are especially welcome. As the Minister outlined, the budget provides enhanced funding for local enterprise offices, targeted enterprise supports and strategic investment in innovation and scaling. We want to see jobs growth across the country and these are vital measures which will support businesses that are seeking to grow and create sustainable jobs across Ireland. I also welcome the increase in the research and development tax credit, from 30% to 35%, because it will enhance Ireland's position for both foreign direct investment and domestic innovation. Given the recent US tax changes that discouraged research and development activity outside the US, this measure was particularly needed and welcome. I also welcome the fact that the first-year payment threshold was raised from €75,000 to €87,500. This will support smaller research and development projects.

The establishment of the AI office of Ireland is also an important measure. This is an area we are still learning about. I expect, on the basis of what has happened in the past 20 years, that Ireland will also become a leader in this new technology sector. It is especially important in the context of continuing to attract foreign direct investment that we maintain our reputation. AI is clearly a helpful resource for companies if used appropriately. The establishment of an office which can assist businesses in achieving that goal is a logical measure. The Minister has said that the office will be up and running by August 2026. What staffing resources are planned for that office and how will it engage with businesses? If available, such details would be appreciated.

I also want to highlight the measures taken to continue to attract foreign direct investment. I already mentioned the research and development tax credit which is just one of a number of measures included in budget 2026. The €100 million next-generation sites fund is obviously the stand-out initiative and it is very welcome. This fund will be used to prepare large-scale regional serviced locations for future foreign direct investment. It is my understanding that the first of these sites is expected to be in the west of Ireland. I ask the Minister to tell us a little more about the process and whether there has been any progress in identifying suitable sites. A number of smaller measures will also assist in attracting foreign direct investment, including the extension of a special assignee relief programme and the extension of the foreign earnings deduction. These are both positive and welcome. I welcome the €120 million in funding for important projects of common European interest which will position Ireland at the forefront of strategic European industrial initiatives, including advanced semi-conductor and AI technologies. This is essential, given our determination to continue to be at the heart of Europe and to work closely with partners across the EU.

Budget 2026 is a pro-enterprise, forward-looking budget which supports businesses and workers. It balances the need for short-term supports with long-term vision. It recognises the need for balanced regional development, the vital role that SMEs across the country play and the importance of foreign direct investment.

Joe Flaherty (Fianna Fail)
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Sinn Féin has the next slot, which Senators Collins and Nicole Ryan will share. Is that agreed? Agreed.

Nicole Ryan (Sinn Fein)
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I welcome the Minister to the Chamber. It is lovely to have him here today to discuss budget 2026. In this section of the budget, there are lots of welcome initiatives, including the VAT reduction. I am sure many people are really thankful for that. However, every October we hear the same story of record budgets, record spending and record promises, but people in constituencies like the one in which I live, Cork North-West, are looking around and asking about where the change is taking place.The budget was billed as one for working people. When we strip it back, however, we can see that it is the workers who are still paying the highest price. The more they work, the more they are taxed. The more overtime they do, the more they lose in deductions. The more they try to get ahead, the more they feel like they are carrying the system on their backs, supporting others when no one seems to be supporting them. I am not talking about the people who genuinely need help. I am talking about those who can work but who choose not to because the system rewards inertia instead of effort. Meanwhile, the nurse doing 12-hour shifts, the teacher staying late to help a struggling student and the ground worker driving 60 km to a site before dawn are footing the bill. Where is the incentive to work in rural Ireland today? When we do the maths and factor in the cost of fuel, childcare, rent and endless stream of bills, it is no wonder people are better off staying at home. This is not sustainable. It is not fair and it is not what people voted for.

For years, people across Ireland have done everything right. They have worked hard, paid their taxes and kept their communities going, yet they are the ones being punished now. They are told there is no money for the GP service, no bus for their kids and no counselling for their teenagers, but somehow there is always money for tax breaks for developers and billion-euro profits for banks that we still will not tax properly. The Government calls this a pro-enterprise budget. However, the Minister would have to tell that to the small business owner in Macroom who cannot get staff because people cannot afford to live locally. He should tell it to the young couple in Kanturk who are saving for a deposit while rent swallows half of their wages.

This is about equity. Working people are not looking for handouts; they are looking for their fair share. The Government says that if they work, contribute and build a life in their communities, they will not be penalised for it. However, this budget tells them the opposite. It tells them that the harder they work, the less it matters. That is why people are disillusioned and that is why trust is breaking down. If the Minister and the Government want people to believe in work, they should reward that work. If they want people to live in rural Ireland, they have to invest in rural Ireland. If they want to talk about fairness, they should deliver it - not in headlines but in people's homes.

Joanne Collins (Sinn Fein)
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I welcome the Minister. I have a specific query. I made the same query on the Order of Business earlier. It is not something that everybody would think of, but as a reformed smoker who uses a vape, it is definitely a bone of contention in my house. I gave up cigarettes seven years ago because I just could not afford to keep smoking as a result of the fact that the tax on cigarettes was increased every year. I switched over to vapes. A bottle of juice for the vape contains 10 ml and costs €5. As of 1 November, 50 cent per millilitre will be added to the price, which will bring it up to €10. That is double the cost of what it will be come 1 November. In terms of the cost of living, for somebody who is giving up cigarettes for a cost reason and not a health reason, to double the cost of their bottle of juice is going to be very hard for them to swallow. They are giving it up for a reason, namely because they cannot afford it.

I have never in all my days of watching budgets and price increases seen a tax go on something for the very first time to make it double the cost it currently is. That is quite unfair. It is not going to affect everybody, and it is not going to be at front top of everyone's mind, but there is a good chunk of the population who gave up cigarettes for health or cost reasons. They have moved to vaping. I will hold my hand up; my vape is the only reason I am not still smoking. If it was the case that it came up to the same price as cigarettes or close to it, I probably would go back on to cigarettes because I gave them up for cost as opposed to health reasons. I just want to make the point that it would be nice to have this looked at to see whether the price has to double or whether the level of the increase can be reduced.

Dee Ryan (Fianna Fail)
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The Minister is very welcome. I take this opportunity to welcome this very important budget for our country as we move forward into uncharted economic waters. We did say that we were going to place an emphasis on infrastructure, housing and child poverty. In this budget, which we hope is the first of five, we have done precisely that.

In the context of his Department, I congratulate the Minister on the very pro-business budget he brought forward. In particular, I recognise the increase in the research and development tax credit, which is really important, as well as the allocation of €618 million for a national AI office. As we know, the success, resurgence and, indeed, blossoming of our economy in the past decade is down to our ability to attract and retain multinationals. However, and I welcome the Minister's emphasis on this, we must see the support in scaling and development in innovation of our SMEs and our indigenous sector as being the next chapter in our economic future. In that context, I highlight the research and development tax credit and the €618 million for the national AI office today.

With the greatest respect, I differ from my colleague Senator Crowe in his assessment of the 9% VAT cut. I would have preferred to see a more targeted approach to supporting what I recognise as vulnerable businesses within the hospitality sector. However, I do welcome the support for them.

This leads me on to an issue that is coming down the line and that is going to affect a sector comparable with the hospitality and food and beverage sector. I refer to independent retailers and grocers across the country who, come next February, will be facing the introduction of a new licensing fee for tobacco and nicotine-inhaling products. The amount involved will be €1,800 if they are selling both. That is per premises and is regardless of the size of their premises, turnover or footfall. It is a blanket charge of €1,800 and it will be felt far more keenly by those in the independent grocery sector, who, I would argue, are very much the same as the independent coffee shops and restaurant businesses across the country. They are the fabric of our local communities. Just like the coffee shop, the local grocery shop is where we go to pick up the paper or, perhaps for some, to buy a box of cigarettes or a vape. We certainly call in to inquire as to what the latest goings on are in the local community and to learn about and get involved in our own communities.

The Minister was involved in introducing the relevant legislation in 2023. In light of the serious cost-of-doing-business challenges the independent grocers to whom I refer are facing and the competition from multinationals, will he examine the fact that the perhaps unintended consequence of this licensing fee will be that it will drive the sale of tobacco and vapes underground? It will fuel the black market for those products and may be a further nail in the coffin of independent grocers throughout the country. Will the Minister please consider a derogation for those small independent retailers when he is seeking to introduce this license fee next year?

Gareth Scahill (Fine Gael)
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I propose to share time with Senator Noel O’Donovan.

Joe Flaherty (Fianna Fail)
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Is that agreed? Agreed.

Gareth Scahill (Fine Gael)
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The Minister stated, "Budget 2026 is a pro-enterprise budget that recognises the critical link between industrial development, infrastructure investment and job creation." In this volatile time, the focus was on protecting the 2.81 million jobs in our economy that we cannot take for granted. First and foremost, the reduction of the VAT rate from 13.5% to 9% has straight away saved and protected 191,000 jobs that would probably be the most susceptible in a volatile economy. The Minister must be credited for that.

I also welcome the research and development tax credit. To bring it down to a local idea, in Monksland in County Roscommon we have Novo Nordisk, an international company that announced large-scale job cuts recently enough. Thankfully, the Monksland site was exempted from a large percentage of those cuts. That is directly related to the investment this country has made in research and development tax credits, and the 5% increase introduced in the budget. Indirectly, we have probably protected an awful lot more jobs with that initiative as well. I commend the Minister on that.

We in this House constantly talk about supporting small businesses. Budget 2026 has strengthened regional development and supported our local enterprise offices. We have spoken continuously about the cost of business advisory forum and the small business unit, which are all welcome initiatives from the Minister's Department. I am very impressed with the national enterprise hub.How an initiative like that had not been thought of years ago is beyond me, but bringing it all together it is exactly what our businesses, especially small businesses, need.

We need to weigh some of the supports available for small businesses and there needs to be a lot more collaboration with other Departments. For example, the Department of rural and community development has a town centre first initiative to create public realms. As Senator Nelson Murray said, we cannot create initiatives that jeopardise small enterprises or take away parking spaces from businesses. The Minister's Department needs to support those businesses and make sure that initiatives cannot be introduced from other Departments that will take from them. I will let Senator O'Donovan take over on tourism.

Noel O'Donovan (Fine Gael)
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I thank the Senator for his kind offering. Like other speakers, I want to commend the Minister on his work on this budget. It is a prudent budget and what we have come to expect from the Minister, Deputy Paschal Donohoe. The Minister said in his contribution that there are 2.82 million people in work. When I left college in 2011, the jobs market was quite bleak. We can never forget where we have come from and where we are now. People have a reason to get up in the morning, go to work and earn a fair living to support themselves and their families. It is a major hallmark that we should never forget.

The Minister referenced the 9% VAT rate, something for which he has campaigned for a long number of years. West Cork has a large number of businesses that have engaged with me on this issue and will benefit from the VAT reduction. They are busy businesses. I have continually made the point that businesses have extremely high footfall, yet are still struggling. As Senator Scahill said, we need to be even more proactive in the months and years ahead. We need to ask these businesses questions and listen to them. Local enterprise offices can play a role. They arrange conferences, meetings and workshops, but there is a benefit to knocking on the doors of businesses and asking them questions.

I have some suggestions for next year's budget. The town of Bandon is currently going through major public realm work, which is welcome and transformative for the town. During the process, however, businesses have suffered in terms of footfall and revenue, yet the local authority has very little discretion in terms of a rates waiver. The car park in Bandon has been finished. There is scope at ministerial level for the Minister for local government and local authorities to ensure that when works commence in a town there is discretion to support businesses. We will see similar in the town of Bantry shortly, which will undergo flood culvert works. Again, the town and businesses will need support.

I suggest we support our chambers of commerce and business associations in the work they do to support businesses in towns. We have seen how well the support for agricultural shows has worked throughout the country, which have been given €5,000, €6,000 or €7,000. Our business associations support businesses in towns, including with Christmas lights and various events. A body of work could be done to look to next year's budget to support the chambers of commerce and businesses and communities. I commend the budget and the work of the Minister.

Aidan Davitt (Fianna Fail)
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I am delighted to welcome the Minister to the House. It is a testament to how hard-working he is that all of the people who have spoken have commented on well he has done in his brief since he started. He should keep up the good work.

I have some queries and a question on the local front. I refer to apprenticeship schemes. It is not under the Minister's brief, but he is dealing with business and getting people into work. One of the biggest problems we have now is getting qualified staff for many jobs. As the Minister is aware, we are providing waivers and permits to bring people into the country.

Regarding auctioneering, there is a one-off grant per year when somebody starts – I believe the figure is €3,000 and was originally €1,000. We are treated very differently from the wet trades, such as block layers, plasterers, electricians or whatever else. Such apprentices are subsidised by the State, but that does not happen in our industry. An auctioneer sends somebody off to college one day a week and does not have them working for them, yet is paying them the entire time. They are paid the minimal wage and whatever else. People starting off find it tough. A hell of a lot of schemes are in the same boat. There are banking and insurance apprenticeships, as the Minister is aware. Perhaps when he is around the Cabinet table it would be worth discussing. A change would help and encourage more people to take on more apprentices.

I refer to auto enrolment. In fairness, the Minister understands the pressures businesses face as regards the minimum wage and auto enrolment. He is doing his bit regarding the hospitality industry, as has been discussed. I know a little about the industry and I know it is not that easy at present to get companies to play ball. They do not want to know about auto enrolment or pension schemes. Some businesses only have one or two employees. It is a problem for them. Getting people signed up and organised is a hassle. The amount of time involved is considerable, in particular for people who have no background in this. There should be a small grant or some sort of one-off allowance in next year's budget to assist people, in particular smaller businesses that are trying to establish themselves. Larger companies often have someone experienced in pensions and investment working in them and their own pension scheme or whatever else, but many smaller companies do not have a clue what is going on. I am sure the Minister is well aware of this. He is from that background and I am sure he is receiving these sorts of queries.

Senator Scahill mentioned the far side of the River Shannon and guys who think they are in Athlone. He referred to Novo Nordisk. I am sure anybody in Athlone who asks is told there is only one reason those jobs are there, namely, the Minister. There is no doubt about that. We would not have to ask the Minister twice. It was a coup and it is to be hoped the ship has sailed and there will be no further jobs lost because they are very good high-paying jobs in Athlone. They have been a great help to both counties straddling the River Shannon.

On a local note, there have been announcements and some things are in the pipeline regarding local jobs. The Minister might give us a brief outline of what is going on locally, if he does not mind.

Mike Kennelly (Fine Gael)
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I welcome the Minister to the Seanad. I welcome budget 2026. I want to begin by welcoming the decision of the Government in 2026 to reduce the VAT rate for the hospitality services to 9%. It is it is a positive move and one that will offer some breathing room to many businesses across the tourism sector. It was not an easy decision, and I appreciate the efforts of the Minister and his Department to support this vital industry.

As a proud Kerryman, Kerry is home to football but also tourism. Tourism is more than just an economic activity; it is part of our identity in Kerry. From the lakes of Killarney to Muckross House, the Torc Waterfall, Dingle, Kenmare, the Ring of Kerry, the beaches of Inch, Ballybunion, Ballyheigue and Fenit and the Listowel races, tourism sustains thousands of jobs and supports hundreds of small businesses in Kerry and Ireland. It is the backbone of many communities, especially in rural and coastal areas.

I offer my sympathies to the O'Callaghans of the Fáilte Hotel in Killarney on the passing of Paudie O'Callaghan, who was an ambassador for the tourism market in Kerry over many years. I served on Kerry County Council with his brother, Councillor Niall "Botty" O'Callaghan. Our sympathies to him and his family.

On the reduction of the VAT rate to 9%, almost 15,000 people in Kerry are employed directly in tourism-related sectors. That is a significant portion of any workforce.When we factor in the indirect employment in retail, transport, food production and cultural services, the reach is even greater. I know the Minister has seen this at first hand. Earlier this year the Minister visited Kerry with me and we met with groups like the Killarney hotel federation, the Tralee Chamber Alliance and the Listowel Business and Community Alliance. The Minister listened to their concerns about rising costs, staffing shortages and the need for continued investment in infrastructure and connectivity. That engagement by the Minister was appreciated locally and shows his commitment to the sector. Indeed, canvassing for Heather Humphreys in the last number of days and the last week was a pleasure. People recognise her contribution, her being pro-jobs, and her identity on that budget.

While the VAT reduction is welcome, I believe there is room to do more. Many non-food hospitality businesses such as guesthouses, bed and breakfast accommodation, caravan parks, leisure centres and local attractions continue to face real challenges as well. These businesses are essential to the tourism visitor experience and deserve equal support. I ask the Minister and his Department going forward to again really consider extending the 9% VAT rate to all non-food hospitality services, including the wet bars. Suggestions were made to save these rural pubs across the county of Kerry and indeed across the whole country. Life does exist outside the capital and in rural Ireland we need these to exist.

There was one suggestion made about the draught excise rebate scheme. The Vintners' Federation of Ireland has called for a cap on the excise rebate on draught beer and cider. Such a measure would directly support traditional pubs. Its absence in budget 2026 is, and is seen as, a missed opportunity to relieve the pressure on these wet bars. When I say "wet bars" these are the crossroads bar, maybe in the small town that might have two or three pubs operating. They do not do food but they also need to be targeted, supported and kept open. One of the competitive factors introduced was in targeted supports for seasonal and rural tourism operators for investing in regional tourism infrastructure, signage - which is a simple thing - public amenities, and digital marketing to support destinations. These are places like Ballybunion and Ballyheigue. This was also for supporting workforce development with training incentives and accommodation supports for all seasonal staff.

Tourism in Kerry is about more than numbers; it is about people. It is the students who get their first summer job in the local hotel, the local bar or the local restaurant. It is the family who own bed and breakfast accommodation with pride. It is the small businesses and business owners who depend on the visitors and the tourism market to keep their lights on. I welcome the budget for 2026. Let us keep working together to ensure that tourism in Kerry and across Ireland not only recovers but continues to grow and thrive.

Joe Flaherty (Fianna Fail)
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I thank Senator Kennelly for a wonderful account of tourism in County Kerry. We will go to Senator Conway now and see if he can extol the virtues of tourism in Clare.

Martin Conway (Fine Gael)
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Gabhaim buíochas leis an Acting Cathaoirleach. Of course I will. I commend my colleague Senator Kennelly on espousing the virtues of Kerry. Indeed he is right. Clare, across the Shannon, has equally as much to offer.

The Minster is very welcome to the House. I am delighted that tourism has been added to his brief. When we look back to 2010 to 2012, when we were on our knees as a country, the first industry that bounced back was tourism because we approached it strategically. We created product that was attractive internationally. It started with The Gathering and then it evolved to the Wild Atlantic Way, which was the first time we had a joined-up thinking approach in marketing us as a country, the west of Ireland from to Donegal to Cork, in a professional way internationally and in a way that can be attractive, similar to camino walks in other countries. We need to build on that.

Back in 2017 or 2018, I tabled a motion in the House that the 9% VAT rate would be retained permanently in the tourism industry because of what it did as a budgetary measure that really did have impact. Funnily enough, my Private Member's motion actually did not pass because people had reservations about it simply because of the cost. I would argue that it is the right decision and, as time evolves, it will be proven to be the right decision because there are tens of thousands of potential jobs yet to be created in the tourism sector in this country. There are also the tens of thousands of jobs currently that need to be protected. This is one measure that will protect them. It is not coming in until next July and that the minimum wage is increasing after Christmas, so there is a lacuna of a few months that some businesses will find extremely difficult.

I also welcome the Minister's creative thinking when it comes to tourism. I urge the Minister to look at some sort of a scheme to support villages to retain the fabric they have. A village is only village when it does have its pub, its shop, its coffee shop and somewhere for people to eat. I welcome and really support the gold-plated tourism products. In County Clare we have the Cliffs of Moher, which is one of the top tourist attractions in the country, but we also need silver-plated ones. It is pointless in County Clare for a bus to come from Dublin to the Cliffs of Moher, spend four hours at the Cliffs of Moher and then for the bus to go back to Dublin. We need to create a two- to three-day package where the buses will come and absolutely they will visit the gold-plated facility but there are lots of silver-plated facilities as well. We need to keep investing in them to make sure they are up to best international standard. We cannot let our silver-plated facilities dwindle because of the lack of investment. The joined-up thinking with rural development and the work involved was done by Heather Humphreys when she was the Minister, and Michael Ring before her, investing in swimming pools, in visitor attractions, in museums, in community hubs and so on that are the silver-plated facilities that benefit communities as a drop down from the gold-plated facilities. It is important that they are supported.

We are living in an Internet age and a digital marketing age. As a country, we need to be spending the bulk of our international marketing budget in the digital space. I welcome that there is a team within the Minister's Department that is working on digital marketing, but I really think there needs to be a facility for ramping that up significantly, particularly in the lucrative markets like the European market, the American market and the new growing markets in places like Asia. When they come, it is the trip of a lifetime and they spend money. The car rental sector also needs to be supported. The Leader, Senator Kyne, will be talking to the Minister on that specific issue in the coming days. We have had an engagement with our former Oireachtas colleague in that area.

It would be very useful if there were a fund available within the Minister's Department to support and engage when particular elements of the tourism industry find themselves in trouble. It worked during Covid when we were able to intervene and save businesses. I am one of the people that does not believe in saving businesses that are not possible to save long term. There is no point in government money being spent to prop up a business that ultimately will fail if it does not get government money but there are a lot of businesses that need a leg up. We will find that, between January and July, some businesses will suffer because of the minimum wage increase in advance of the VAT reduction. There needs to be a fund that is swift, quick and reactive and can intervene to stabilise businesses to prevent them from going under, which potentially they could do in the short term. The Minister has a business mind and he thinks that way. I encourage him to make sure his officials are flexible with those types of schemes because they can be the difference between a business dying and a business surviving and, ultimately, the preservation and retention of jobs.

Joe Flaherty (Fianna Fail)
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I thank Senator Conway. I do not think we have any more Senators offering to contribute, so before he responds, perhaps the Minister could indulge a few of my queries if he does not mind.As his Westmeath colleague, Senator Davitt, has pointed out, the Minister has delivered enough jobs to Athlone and Mullingar already. I ask him to update us on the plans for the IDA advanced manufacturing facility in Longford town. Will he confirm that it will be 30,000 sq. ft, as per the spec of other facilities that have been delivered nationwide? Are we close to a date when work can start? Are they close to applying for planning permission on the site?

I was pleased to see the commitment to AI in the budget, which was an important first step. We have a huge challenge in the country in terms of AI literacy, particularly with older people, but surprisingly with our young people as well. It will be one of the key challenges for us as we move to the next phase of tech investment in Ireland. To that end, I think the national AI centre is critical. It was good to see the money announced for this in the budget. There is no reason that the centre has to be based in Dublin. AI can be anywhere and it would be an important statement for the Government and the Minister's office if that facility went to rural Ireland. As we know, there is enough already in Athlone and Mullingar and it would be seen as a very political decision if it was located there, but the Minister is aware of the empty shopping centre and the Providers building and I know Longford County Council management has spoken to him at length. It would be an important statement from this Government of the role that AI is going to play, not only for the future Ireland, but indeed for the regeneration of rural Ireland. I would welcome the Minister's thoughts on where he thinks that will be located and if it is a possibility that it can be located in rural Ireland.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Acting Chairperson and all 14 Senators for their contributions and the points they raised. I will just touch on a few of the points. Certain themes went through a number of the points. First of all, Senator Linda Nelson Murray made excellent points about SMEs. We all know that small family businesses employ about two-thirds of people across the country and they do not have HR directors or finance directors. A lot of their great work is done around the kitchen table. That is why we are very keen to support them in having grants that do not require a huge amount of time. We are now putting a huge amount of effort into doing things simpler, lighter and faster, reducing the conditions and hopefully getting to a stage where we can turn those smaller SME grants around in 24 hours to grant approval in principle, particularly in the space of digitalisation and decarbonisation. We know that if companies can change the business model and reduce their utility bills, it gives them a fighting chance of being sustainable into the future.

In relation to scaling, we will come forward later next year with our new national accelerator programme. That will join all the dots between the current model, with Dogpatch Labs, PorterShed and Republic of Work and so many different pieces of the jigsaw around the country. We will have a very strong model with Enterprise Ireland at its core. That will allow our SMEs to scale and give them the support and the funding they need at an early stage, which is critical to their success.

One point that really runs through a few of the themes is in relation to our indigenous economy, which is very close to my heart and is very important. It is very important to have a strong multinational space as well, because some of the companies that are referenced here have been in this country for 50, 60 or 70 years. One of the great things that can be seen as a theme running through those companies is that many of them have hundreds of SMEs deeply embedded in their supply chains. We brought packages to Cabinet today with research, development and innovation grants. Some of those companies have small SMEs right across the country that are providing key services for them to be successful here in the Irish economy and it is important we never forget that. Intel, for example, has 850 SMEs working for it, including Banagher Precast Concrete and Kiernan Structural Steel in Longford. It is a hugely diverse spread. It is important that we understand this integrated relationship.

It is also important to note that the top ten Irish companies based in Ireland employ 450,000 people globally. This demonstrates the strong internationalisation of the Irish economy. If we go by evidence, which we all should in this Chamber, and look back, we had a record year for Irish indigenous companies last year, with exports of about €36.75 billion. They employ 234,000 people through Enterprise Ireland. We are looking to get to 50,000 exports in the next four years. In the key markets, Europe grew by 8%, to approximately €10.6 billion euro. This is now the lead market for our Enterprise Ireland clients. The US grew by 8% and the UK grew by 4%. We have a very strong base and it is growing and we are creating more jobs in it. That is the explicit evidence as we look at it. We can grow the links between our SMEs and our multinationals. I was awestruck by the connection between one of the very big life-science companies in Athlone and smaller companies. I was in Ballinasloe visiting a small printing company. This is a family business which employs some 25 people. The owner told me that the instructions that go into each bottle of medication are printed by his company and it is linked into one of the biggest life-science companies in the country. This demonstrates that link which should not be taken for granted.

Regarding the 9% VAT rate, this is very important to sustain jobs in rural and regional areas of the country. Senators Crowe and Nelson Murray pointed out how important it is to look beyond that. We have in the programme for Government measures that are contained within PRSI for our SMEs, particularly in retail and hospitality. We cannot do everything in one budget, and hopefully we will be looking at areas of further improvement for viability in the years ahead, and also looking at other areas that we could not deliver in this budget. Excise duty is one of those that is very important for our pubs and wet pubs, which provide a very strong offering. That is another area where I think there is significant merit in the proposal, particularly for the on-trade, which is very important to sustain. It is something we can look at in the future.

On the points raised by Senators Ryan and Collins, the licensing issues come under the remit of the Department of Health, unfortunately. I have raised the issue of the increase in licensing fees, particularly for corner shops. I have written to the Department of Health on the matter. There has not been any change on it yet, so we await further developments. Senator Kyne raised the matter with me already. He said it was raised on the Order of Business. It is another issue that we can respond on.

Regarding Senator Scahill's points about the national enterprise hub, the team there has responded to 7,800-odd strong leads since its inception, which is very strong. There is a lot of investigation in terms of working with and supporting many of our SMEs and considering the fact that time is a premium for family businesses, we want to do a lot more in that space and hopefully help them further.

Senator O'Donovan's point about the chambers of commerce is a good one. We can look at working more closely with them, particularly in relation to many of the grants that are available through local enterprise offices. The chambers can be brought on board as well to assist companies in accessing those grants. We have a lot of work to do to make them simpler, and that is the first horizon I am trying to get over, particularly the ones that are not of high value. There is no big risk to the taxpayer, but it is important to turn them around as quickly as we can.

Digitalisation is a very important objective of the Government. We are trying to improve the approach to make businesses more sustainable and we will be doing a lot in that regard. As Senators Davitt and Lawless pointed out, apprenticeships are also very important. The national action plan for competitiveness and productivity contains a large number of actions on apprenticeships and trying to upskill people, which is going to be critical. Incentivising businesses to take on apprentices is a key element. Businesses face a huge challenge with employment costs and we need to ensure that they are getting incentivised to deliver those apprenticeships. We have a lot of work to do in this area.

Auto-enrolment is a big challenge for businesses and I will raise the matter with the Minister, Deputy Calleary. We know it is a very significant policy decision to support the demographic change in our country and sustain people to have a proper income as they go into retirement, but there is a big challenge for business as well. We have to try to support them with information and support in terms of the mechanism to do it, but also financially it is a big challenge. That is why I am hopeful that some of the viability measures will help some cohorts, but I agree that we have more to do and we have to try our very best on it.

In relation to Mullingar, there have been a number of improvements relating to the advanced factory unit, on which the sod has been turned. A huge amount of work will be done there over the next 18 months to ensure it is delivered. There was also the announcement in the past month by the US company G and F Precision Molding of 30 jobs in the area.

Senators Kennelly and Conway raised important points about tourism, digitalisation and improving the offering. I am hopeful that we will have our tourism strategy ready next month. We will be doing a number of things within the tourism strategy.We will expand the remit of Fáilte Ireland. It will work with our restaurants now, having focused more on hotels previously.

We need to develop the model. How do we make the offering more sustainable? We will embrace SMEs because they are integral to grasping the opportunity that will be in the marketplace. We will put boots on the ground where there are new air routes. We have three new gateways into the US market this year - three new direct flights. We have 21 in total. When policy decisions like that are taken, we need to put resources behind them to sell them and get people back here. That will be important.

We will have an all-Ireland food strategy, which will be particularly important in the European market where there is a challenge with the lack of understanding of the huge artisan offering we have in Ireland. We will expand our business events strategy and will potentially get €1 billion per year out of that.

That will all be captured by our tourism policy and we will have key performance indicators with our State agency, Fáilte Ireland, to ensure we are reaching our targets. They will be significant targets but we have to aim big because the sector can bring revenue to all parts of our country. I know from meeting businesses down there with Senator Kennelly how important it is. Equally with Senator Conway in County Clare, I saw how critical it is to Ennistimon, Lehinch and the towns and villages around there. The huge offering tourism makes is very important.

Senator Flaherty raised a number of issues. Artificial intelligence will be key. It is for the future. It does not have to be located in any one town or city. It is an area where we will have a lot of opportunity in the future. We will finish transposing and designating competent authorities under the AI Act by next August. Then we will establish our office, which will be a significant statement by the State. That will work not only on regulating artificial intelligence, but also on developing the model and looking at opportunities for our businesses across the country. There is a huge opportunity and it is something we have to grasp with both hands.

On the IDA, I understand from the last conversation I had that we should be due an announcement pretty shortly on it. I will try to get the Senator a note on that to bring us up to date. It is a significant priority. There are a few issues that Transport Infrastructure Ireland was working through on the site it has. Those have been resolved, I understand, and we can progress on it. I know it is very important for Longford town and the area.

I have covered as much as I can in my response and I thank everyone for their time.

Aidan Davitt (Fianna Fail)
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A report on the cost of power today said Ireland was the most expensive country in Europe. It is evidently a massive factor in industry. What can we as a Government do about it? What are the Minister's thoughts?

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Senator for that intervention. We are price-takers in the market. That is a big issue in power. We have set up the national affordability task force and the Minister, Deputy O'Brien, is trying to ensure that as we invest in our grid, we make the user pay less.

In the new capital programme, PR6, we are investing about €18 billion in improving our transmission and grid capacity. In PR5, we invested about €8 billion, so it is a significant increase in expenditure. The framework is the key thing that Government will have to grasp. This capital expenditure will transform our generation capacity. We will have 9 GW of solar come into the grid by 2030, 8 GW of onshore wind and, in theory, 5 GW post 2030 of offshore wind. How do we make that investment cheaper to the user? We know we are the most expensive economy for electricity in Europe because we are price-takers. We have two interconnectors waiting to come on stream, one with the UK and one off the coast of Cork with Brittany. They will make a difference.

As we go through the national affordability task force, we have to grasp the nettle. As the Government puts billions of euro into energy, we cannot levy it back on the user. That is the current framework and that is the change that needs to happen.

Aidan Davitt (Fianna Fail)
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I thank the Minister for the clarification.

Joe Flaherty (Fianna Fail)
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Thank you, Minister. I was reprimanded for letting in Senator Davitt a second time but I knew it was a very important issue and that the Minister was keen to respond.