Catherine Connolly (Galway West, Independent)
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102. To ask the Minister for Enterprise, Trade and Employment the steps being taken by his Department to assist businesses in Ireland to decarbonise, particularly in light of the findings of a report (details supplied) which found that 86% of businesses reported that they had no set commitments or targets in relation to carbon; and if he will make a statement on the matter. [16849/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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As the Deputy has highlighted, many businesses are still to embark on their decarbonisation journey. We need to bring all enterprises with us as we transition to a more sustainable, low carbon economy. I am conscious that businesses - particularly smaller businesses - have many competing priorities at present. I and my Department are focussed on engaging businesses in the green transition, and demonstrating that there are simple, cost-effective things every company can do to get started.

The Climate Toolkit 4 Business is the Government’s online tool which generates an estimated carbon footprint for a business alongside a tailored climate action plan - and is particularly useful for SMEs. The Toolkit was launched in December 2021 and to date over 12,400 tailored climate action plans have been generated for businesses.

My Department and agencies offer a multitude of supports for decarbonisation to ensure there a comprehensive suite of options available to all businesses. Throughout 2023, my predecessor held nine Building Better Business events across the country in support of the Regional Enterprise Plans. Decarbonisation and the broader green transition were a core message of these events and saw significant engagement from the businesses in attendance.

Thousands of businesses are being supported through the Green Transition Fund, SEAI energy programmes, SkillNet Ireland training, the LEO Green for Business programme, and a range of other advisory, training and grant aid offerings.

My Department will shortly publish two decarbonisation Roadmaps; one for our manufacturing industry and one for our commercial built environment. The roadmaps will signal to businesses the key policy interventions to decarbonise those sectors’ heat use, including the supports available to businesses to decarbonise, the regulations to promote decarbonisation, and the enabling measures that will help facilitate the transition.

My Department, and key state agencies, are working to ensure that all businesses in Ireland are activated and engaged in the green transition and the broader sustainability agenda. This will be a crucial component of ensuring Ireland’s economy remains competitive, resilience and sustainable as we progress towards our target to be net zero by 2050.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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103. To ask the Minister for Enterprise, Trade and Employment the measures that will be implemented to assist businesses, particularly in the hospitality and retail sectors, and also small-scale manufacturing, to meet additional costs and protect employment; and if he will make a statement on the matter. [16980/24]

Cathal Crowe (Clare, Fianna Fail)
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117. To ask the Minister for Enterprise, Trade and Employment if he will give positive consideration to introducing supports to struggling small and medium-sized businesses to meet the increased costs they are facing. [16694/24]

Mairead Farrell (Galway West, Sinn Fein)
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126. To ask the Minister for Enterprise, Trade and Employment the steps he will take to address the cost of doing business in the State; and if he will make a statement on the matter. [16193/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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I propose to take Questions Nos. 103, 117 and 126 together.

I recognise that firms have faced a significant challenge in facing multiple crises alongside cost increases over the last number of years, including Brexit, the COVID -19 pandemic, the Russian war in Ukraine and the associated supply chain shock, the energy cost crisis and rising inflation along with wage demands, and rising interest rates. It should be noted that not all cost increases however are attributable to Government measures.

The Government has advanced a range of measures to improve working conditions in Ireland over recent years. These improvements will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies, albeit that these will inevitably give rise to additional costs for some firms.

My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of these changes to working conditions, including Auto-Enrolment Retirement Savings Scheme, Parent’s Leave and Benefit, Statutory Sick Pay, the additional Public Holiday, the Living Wage, and the Right to Request Remote Working. This report was published on the 5th March and in response to the findings a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve cost competitiveness of firms.

These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000. In addition, an options paper on the application of the lower 8.8% rate of Employer PRSI contribution is currently being prepared and we will also take steps to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms.

This is in addition to a €257 million package for the Increased Cost of Business grant. Local authorities, funded through the Department of Enterprise, Trade and Employment (DETE), are managing the rollout of the grant to qualifying businesses, and have written out to rate paying businesses with details of how to register for the scheme and it is up to businesses to verify their details through an online portal. This scheme is designed to help SME’s.

The Government recognises that there is an increased cost burden on firms arising from these measures, however, there is also a need for balance in considering the current position of enterprise. The PwC Insolvency Barometer reveals a current annual failure rate of 28 companies per 10,000. This remains lower than pre-pandemic levels. While here has been an increase, business failures remain at historically low levels. The pre-pandemic level of insolvency was 36 per 10,000 recorded in 2019. Recent research from the Central Bank of Ireland has shown that unit profits of Irish firms continued to increase throughout the energy price crisis.

This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years. My Department is fully committed to supporting businesses and the measures included in Budget 2024, and more recently in the measures announced following the publication of the ‘Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’ reflect this.

Emer Higgins (Dublin Mid West, Fine Gael)
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As you will be aware, as part of Budget 2024, the Government signed off on a package of €257 million for the Increased Cost of Business (ICOB) grant as a vital measure for small and medium businesses.

Local Authorities, funded through the Department of Enterprise, Trade and Employment, are administering the grant to qualifying businesses on behalf of the Department.

Local Authorities have written to all rate paying businesses with details of how to register for the grant and it is a very simple process for businesses to verify their details through an online portal.

The grant has been open for registrations since 14 March. The closing date for registrations for the ICOB grant is 1 May 2024. I urge all eligible businesses to register for this grant as soon as they receive a letter from their Local Authority. The sooner a business registers the sooner their details will be verified and the grant will be paid out. Local Authorities will begin to send payments to eligible businesses from Monday next 22 April.

In relation to the uptake of the scheme in the counties referred to in the question, the latest figures as at Tuesday 16th April are as follows:

Kildare has 1320 registrations which is 26% of businesses notified

Wicklow has 1104 registrations which is 36% of businesses notified

Meath has 1181 registrations which is 32% of businesses notified

Louth has 959 registrations which is 31% of businesses notified