Written answers
Thursday, 1 May 2025
Department of Enterprise, Trade and Employment
Business Regulation
Emer Currie (Dublin West, Fine Gael)
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77. To ask the Minister for Enterprise, Trade and Employment the steps he has taken to fulfil the programme for Government's commitments to undertake a look-back exercise to identify regulations that are now redundant, to reduce unnecessary red tape and the cost of doing business; whether this will form part of the work of the action plan on productivity and competitiveness; and if he will make a statement on the matter. [21607/25]
Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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The Programme for Government is clear in setting out the importance of SMEs to our economy. Developing Ireland's enterprise base remains a key priority, and we will strive to reduce costs, administrative burdens and bureaucracy for businesses.
Ireland is internationally well-regarded in terms of regulatory burden. The 2025 Annual Single Market and Competitiveness Report from the European Commission ranked Ireland 4th in terms of Ease of Regulatory Compliance in the EU. Ireland’s strong competitive position is reflected in our exceptionally strong economic performance in recent years. However, the international context is rapidly changing, and we recognise that many businesses, whether indigenous or FDI, are facing increased challenges.
In recognition of these challenges facing Ireland, the current Programme for Government committed to the publication of a new whole of Government Action Plan for Competitiveness and Productivity by January 2026. The Government has, however, accelerated this timeline, with a draft of the Plan to be considered by Ministers at a Competitiveness Summit this July. This plan will cover industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development, and innovation.
Over the coming weeks, the National Competitiveness and Productivity Council will finalise and submit its Ireland’s Competitiveness Challenge 2025 report to Government. This work will feed into the development of the Action Plan. Alongside this, my Department is undertaking consultation with stakeholders including other Government Departments to ensure that the Action Plan is evidence based and reflects the issues impacting Ireland’s competitiveness.
Given the heightened level of international uncertainty, the overarching objective of the Action Plan will be to focus on matters within our control by way of policy changes which can make the domestic Irish economy more competitive and resilient to economic shocks.
The Programme for Government also calls for the establishment of a Cost of Business Advisory Forum and it is proposed that Forum will focus on the regulatory burden as well as other costs highlighted by business. It is proposed that the Forum will comprise officials from key regulatory agencies such as the Environmental Protection Agency, the Commission of Utilities, Revenue, and others, as well as representatives from the enterprise sector and social partners. The aim would be to convene the first meeting before the end of May.
It is envisaged that the Forum should be ‘output-orientated’ and should not be just a ‘discussion’ group. This approach would see a finite number of meetings, possibly no more than eight meetings, focusing on individual key themes of concern to the business community. It is proposed that the outcome of the Forum will be a report for consideration by the full Enterprise Forum, written by the Chair, outlining a set of policy and administrative changes to improve the cost burden for businesses particularly small enterprises in Ireland.
Addressing excessive administrative burden and right-sizing the regulatory environment are of critical importance to our businesses - there is a need for our regulations, schemes, supports and processes to be consistent, necessary, proportional, and effective. Good quality regulation and policy provides predictability and certainty for business and is crucial for consumer and worker protections.
Together with my Department officials, agencies and offices, we will continue to consider how the various regulations, services, offerings and supports can be simplified for stakeholders and unnecessary administrative burdens removed.
In this regard, I have recently written to the State Bodies under the aegis of my Department about the importance of strengthening Ireland’s competitiveness and reducing the regulatory and administrative burden on enterprise, underscoring the necessity of further embedding Better Regulation principles. These Bodies have been asked to reflect on their organisation’s offerings to consider how they can be simplified, thereby reducing burdens, without compromising policy objectives or proportionate good governance and financial management and controls.
Considerable work has already been undertaken by my Department to ease the burden on businesses as well as streamlining the support landscape with the delivery of the National Enterprise Hub. The introduction of the SME Test has also been designed to invite consideration of less stringent compliance requirements for smaller companies.
At EU level, the new Commission has a strong focus on simplification and administrative burden reduction. All EU Commissioners are tasked with reducing burden, including a reduction of administrative burdens by at least 25%, and at least 35% for SMEs, and reviewing the legislation within their remit.
The Commission Work Programme for 2025 places a strong focus on simplification and proposes a series of omnibus packages on the simplification of various pieces of legislation. I strongly support the simplification and burden reduction agenda at European level, to maximise the competitiveness of businesses in the EU in the evolving global trading environment. The Omnibus package on Sustainability was published on 26 February and includes proposals for cutting red tape and simplifying the obligations on business in relation to corporate sustainability. These proposed changes will significantly help enterprise in Ireland, and most of all our SMEs. I look forward to these proposals being agreed at the earliest opportunity, to give business the legal certainty that it needs.
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