Carol Nolan (Offaly, Independent)
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341. To ask the Minister for Enterprise, Trade and Employment his views on the multiplier effect of the hospitality sector; if he will outline any recent analysis or initiatives aimed at maximising this effect; and if he will make a statement on the matter. [9315/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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The multiplier effect refers to the way that spending in one part of the economy can have a knock-on effect, contributing to activity in other parts of the economy. For the hospitality sector, this effect can be significant, as the sector tends to rely relatively more on local businesses and workers. Hospitality firms are significant local employers. As of Q4 2024, approximately 184,400 people were employed in the accommodation and food services sector.

The CSO provides estimates of the "output multiplier" associated with an increase in the demand for products in different sectors. These estimates suggest that, for every €1 spent in the accommodation sector, €1.32 of total economic activity is generated. In the food and beverage sector, €1.29 is created. This shows how these sectors help to boost the wider economy.

It is important to recognise that there have been cost developments for firms in recent years, particularly those in hospitality, arising from both wider inflationary trends – such as energy costs – as well as Government mandated changes in the form of improvements to working conditions across a range of areas.

The impact of these costs was assessed in a report, ‘An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’, published by my Department and the Department of Social Protection last year. The report estimates that while additional wage costs arising would be moderate across the economy, for some certain sectors (accommodation and food, and retail) the additional costs could be potentially more significant.

Government has adopted an active approach in supporting firms and households – particularly SMEs, including those in hospitality – over the last number of years, with the delivery of cost of living and doing business supports, comprising a mix of permanent and one-off measures. Hospitality firms have benefitted directly – and as a result of multiplier effects – indirectly, from the provision of these measures, as they support economic activity more broadly.

I would also emphasise the ongoing support my Department and its agencies provides for enterprise more broadly across Ireland, with a full range of programmes aimed at aiding firms to develop and grow. As set out in the White Paper on Enterprise 2022-2030, ‘our vision is for Irish-based enterprise to succeed through competitive advantage founded on sustainability, innovation and productivity, delivering rewarding jobs and livelihoods’.

In addition, the Programme for Government 2025 commits to the publication of an Action Plan for Competitiveness and Productivity within 12 months, which will target – among other things – making Ireland the most supportive environment for indigenous businesses. This action plan will include tax and wage policy, access to finance, education and training, energy and utility policy, infrastructure and digitisation. Furthermore, the Programme for Government commits to the publication of Enterprise 2035, as a long-term ambition for enterprise growth and job creation over the coming decade.

Duncan Smith (Dublin Fingal East, Labour)
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342. To ask the Minister for Enterprise, Trade and Employment if the Companies Governance Enforcement Regulatory Provisions Act 2024 can be retroactively applied from the date the Act was signed, to a business that has had a one-off late filing of year-end annual accounts; and if he will make a statement on the matter. [9357/25]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 was signed into law by the President on 12 November 2024. 64 of the 90 sections of the Act were commenced on the 3 December 2024.

The provisions that were commenced include those that:

• provide for the conduct of, and participation in, general meetings of a company or industrial and provident society by the use of electronic communications technology
• provide for additional grounds for involuntary strike off of companies
• make certain amendments to the rescue process for small and micro companies
• enable the Irish Auditing and Accounting Supervisory Authority to issue an interim direction in certain circumstances
• enable the Irish Auditing and Accounting Supervisory Authority to use money paid into the reserve fund in accordance with section 919 of the Companies Act 2014 in the performance of its functions under section 934 of that Act

One of the 26 provisions that has not yet been commenced relates to the removal of the automatic loss of audit exemption for small companies on a first occasion of failure to file an annual return. This provision will apply from the date the relevant section is commenced and therefore will not apply retrospectively to 2024. It is intended to commence these provisions later this year.