Written answers

Thursday, 20 June 2024

Department of Enterprise, Trade and Employment

Business Supports

Photo of Gerald NashGerald Nash (Louth, Labour)
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100. To ask the Minister for Enterprise, Trade and Employment the rationale for excluding businesses which pay their rates through their rental/lease agreement with a commercial landlord, to that landlord, from the scope of the increased cost of business grant scheme; and if he will make a statement on the matter. [26541/24]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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As the Deputy will be aware, I announced the reopening of the ICOB grant scheme from May 15th until May 29th. This was to ensure those business owners who missed the original deadline had the opportunity register.

I made a change to the scheme that allows for a second payment to be made to businesses in the hospitality and retail sectors or a double payment for businesses in those sectors.

An important aspect of the ICOB grant scheme has been to directly involve the Local Authorities in the authorisation and payment processes, as they are closest to the commercial life within their cities and counties and work in the provision of supports to smaller enterprises via the Local Enterprise Offices. This is one reason why eligibility is in part determined by the rates system which is a good proxy for determining the scale and size of businesses.

Businesses who are tenants could register as long as they are the rate payer. It has been brought to my attention that some businesses have entered into arrangements with their landlords whereby the rent payable includes an amount towards rates, and their rates bill is in turn satisfied by the landlord. The legal position, (under section 4 of the Local Government Rates and Other Matters Act 2019, as well as the amendments introduced through the Historic and Archaeological Heritage and Miscellaneous Provisions Act 2023) is that tenants whose rent incorporates their rates obligation and is remitted by the landlord cannot be deemed to be the ratepayer.

The Deputy will appreciate that it would be inappropriate for me to attempt to interfere with existing commercial arrangements between small businesses and their landlords, in the context of the Increased Cost of Business Scheme. The priority has been to ensure that as many businesses as possible receive the money as quickly as possible.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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101. To ask the Minister for Enterprise, Trade and Employment if there are any Government grants available to traders to refurbish showrooms (kitchens, bathrooms, and so on). [26555/24]

Photo of Emer HigginsEmer Higgins (Dublin Mid West, Fine Gael)
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Local Enterprise Offices (LEOs) play an extremely important role at local level, as part of a supportive ecosystem, providing their services direct to small businesses and promoting entrepreneurship within towns and communities across the country.

They are the first stop shop for every business in the country and provide a signposting service for all government supports available to small businesses and can provide information/referrals to other relevant bodies under agreed protocols.

LEOs offer direct grant assistance to small businesses, particularly to those who are starting up. However, it should be noted that grants that are specifically designed for growth or exporting are aimed at those in the manufacturing and internationally traded services sectors. These cannot be provided to businesses in areas such as personal services, local retail, or local professional services as it may give rise to displacement of businesses in the locality.

LEOs can provide consultancy and grants to small businesses of all sectors, in the areas of Green, Digital and Lean. These grants are focused on providing capital to assist in implementation of recommendations to digitalise or decarbonise a business. These grants also enhance the productivity and improve the competitiveness of small businesses and can help to identify cost savings within a business, freeing up capital to reinvest in other areas. This may be of relevance to the businesses in question.

As the Deputy will be aware, last month, Government agreed a range of measures to assist small and medium size businesses to reduce their costs. Some of the key measures by my Department include increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%. We are widening eligibility for the Trading Online Voucher, extending it to all sectors up to 50 employees, while also modernising the eligible expenditure and doubling the grant to €5,000.

I would encourage any small business owner/manager to contact their Local Enterprise Office and speak to a business development advisor and avail of the many supports available.

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