Written answers
Monday, 8 September 2025
Department of Enterprise, Trade and Employment
Small and Medium Enterprises
Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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669. To ask the Minister for Enterprise, Trade and Employment the breakdown of the total number of business closures recorded in the State since 1 April 2025, disaggregated by industry sector and county; and if he will make a statement on the matter. [44886/25]
Peter Burke (Longford-Westmeath, Fine Gael)
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The information requested is being compiled by the Companies Registration Office and will be forwarded to the Deputy as soon as possible.
Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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670. To ask the Minister for Enterprise, Trade and Employment the specific supports financial or otherwise that have been introduced by the Government since March 2025 to assist small and medium-sized enterprises in the hospitality and retail sectors facing closure; and if any further emergency measures are being considered in light of recent data indicating over 3,250 business closures to date in 2025. [44887/25]
Alan Dillon (Mayo, Fine Gael)
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There is a wide range of significant supports provided by Enterprise Ireland and the Local Enterprise Offices to assist small and medium-sized businesses in all sectors including to support businesses in the hospitality and retail sectors that find themselves in challenging circumstances.
The Deputy may be aware that we have simplified access to grants and support programmes through the National Enterprise Hub (NEH) which can be accessed online at neh.gov.ie. The NEH has listed over 250 different supports for businesses from 30 Departments and agencies. The supports include those listed under the headings of `Keep up and Running` and `Secure Your Future` and many of these supports assist businesses in challenging circumstances.
The NEH has dealt with over 800 enquires from businesses identified as within the hospitality and retail sectors. The main goals identified by business in these sectors have been help with cashflow, get support to expand, and employ new people.
Many businesses have accessed the Energy Efficiency Grant and Grow Digital, both of which were amended last year to broaden eligibility criteria and the Local Enterprise Offices’ Lean for Business programme. Other top supports include LEO mentoring, and the Department of Social Protection Wage Subsidy and JobsPlus schemes.
The range of appropriate enterprise supports for small and medium-sized enterprises is kept under on-going review.
Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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671. To ask the Minister for Enterprise, Trade and Employment if his Department has received representations or data from representative bodies (details supplied) in relation to the closure of over 200 cafés and restaurants in 2025; and what the Government’s response has been to these concerns. [44888/25]
Peter Burke (Longford-Westmeath, Fine Gael)
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I am aware that the Restaurants Association of Ireland recently published a pre-budget submission for budget 2026 which references 200 restaurant closures in the first 5 months of 2025. I am acutely aware of the pressures that small businesses face, including cafés and restaurants.
The Programme for Government is clear in the intention to support small businesses and, in particular, the retail and hospitality sectors.
The establishment of the Small Business Unit within my Department is a recognition of the importance that the Government places on small businesses. We have simplified access to grants and support programmes through the National Enterprise Hub and we are ensuring the Local Enterprise Offices are properly resourced to help small businesses.
Two recent supports for the sectors were the Power Up and Increased Cost of Business (ICOB) grants which paid out over €400 million to businesses right across the country.
From a tourism perspective, I am committed to publishing a new Tourism Policy Statement which reflects the Programme for Government and other Government priorities. The new Policy, which is at an advanced stage of drafting, will ensure a strong, resilient tourism sector which benefits every community in Ireland and reflects tourism’s new positioning in the Department of Enterprise, Tourism and Employment.
Fáilte Ireland offers a wide range of supports to small businesses, particularly in managing cost pressures. These include dedicated business support hubs that provide extensive resources, live training sessions, and practical courses designed to help the tourism industry operate more effectively.
Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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672. To ask the Minister for Enterprise, Trade and Employment whether the Department has undertaken any economic impact assessment of SME closures in the hospitality and retail sectors in 2025, and to publish the findings of any such analysis; and if he will make a statement on the matter. [44890/25]
Peter Burke (Longford-Westmeath, Fine Gael)
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While my Department has not undertaken any specific economic impact assessment focused solely on SME closures in the hospitality and retail sectors in 2025, the Government is actively and continuously monitoring trends affecting these sectors. This includes tracking company registration and liquidation data, as well as broader economic and sectoral indicators.
Between January and May 2025, there were 167 liquidations in the hospitality and retail sectors, a 58% increase compared to the same period in 2024. Only a portion of these closures were due to insolvencies as there were 66 solvent liquidations during this time. It is important to note, however, that this has not occurred in isolation. Close to 600 new hospitality and retail businesses were registered during the same period, meaning that there has been a net increase in the number of these firms.
The Government acknowledges the challenges facing SMEs and the measures we have implemented demonstrate our commitment to supporting enterprise, protecting jobs, and fostering a competitive, sustainable business environment. A series of measures have recently been adopted to help minimise cost pressures for Irish firms. These include extending the timeline for the introduction of the Living Wage by three years (to 2029) and a halt to any further increases under the Statutory Sick Leave scheme. However, it should be acknowledged that the Food and Beverage Service Activities sub-sector is currently expanding, and the latest available data shows ongoing growth in terms employment.
In May 2024, we launched a comprehensive package of cost-reduction measures for SMEs. These included increasing the employer PRSI threshold, reopening and expanding the Increased Cost of Business (ICOB) scheme, and enhancing several grant programmes such as the Innovation Grant, Energy Efficiency Grant, and Trading Online Voucher. In Budget 2025, we introduced the Power Up Grant to provide further support for businesses facing cost pressures. Over €400 million in grant aid was successfully disbursed to SMEs in 2024.
Looking ahead, the Government is finalising an Action Plan on Competitiveness and Productivity. This plan will focus on strengthening the resilience and international competitiveness of Irish SMEs by addressing business costs, supporting SME scaling, and boosting research, development, and innovation.
Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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673. To ask the Minister for Enterprise, Trade and Employment if he will provide a sectoral impact assessment of the new 15% US tariffs on Irish goods; to identify which Irish industries, including agri-food and pharmaceuticals, are most exposed to this trade development; and the contingency supports being considered for vulnerable SMEs with export exposure to the United States. [44913/25]
Peter Burke (Longford-Westmeath, Fine Gael)
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The introduction of the EU-US tariffs presents notable challenges for many Irish businesses exporting to the US market.? While the recent agreement between the US and the EU provides more clarity, it is still too early to predict exactly how these new US tariffs will play out. Importantly, the agreement leaves the door open for the EU and US to agree tariff reductions in other sectors as negotiations continue over the months ahead.
The Department of Foreign Affairs and Trade is the lead Department in ensuring that the European Commission is aware of the specific impact these US tariffs have on Irish businesses and sectors, and the Tánaiste and Minister for Foreign Affairs and Trade held a constructive virtual meeting with United States Trade Representative Ambassador Jamieson Greer on 26 August.
It is my strong view that we should focus on what we can do to build Ireland’s resilience and openness to new markets, and to make Ireland as competitive as possible under every scenario. That’s why I launched last week the Government’s ambitious Action Plan on Market Diversification, and why I am driving the development of a cross-Government Competitiveness Action Plan which I hope to launch in early autumn.
Our long-established trade partnerships, forged over many decades, are evolving. At the same time, new markets are emerging, digital technologies are transforming industries and the global demand for sustainable solutions is accelerating. The US is and will continue to be an important primary export market for many Irish exporters.
Enterprise Ireland is working at an individual client level to establish the impact of tariffs on clients exporting to the US.
Aligned with the launch of the Government’s Action Plan on Market Diversification (Monday, 25th August), and in response to the US trade tariffs, Enterprise Ireland launched two new grants to support Enterprise Ireland client companies to assess and respond to the impact of US trade tariffs.
- Enterprise Ireland’s Market Research Grant offers funding of up to €35,000 for companies to assess the full impact of tariffs, gain market insights and develop mitigation strategies.
- Enterprise Ireland’s New Markets Validation Grant offers funding of up to €150,000 for companies to develop market entry strategies for new markets or new products.
Enterprise Ireland client companies impacted by tariffs can consult with their dedicated Client Adviser on these new grants and other supports. Client companies can also directly apply for supports through our client Portal.
Enterprise Ireland will continue to work closely with Irish exporters to mitigate the impact of the 15% US tariffs, enabling them to adopt a strategic approach to consolidate and grow their business in the US while pursuing diversification in markets, products, and customer bases to enhance resilience and sustain long-term growth.?
The Government, through Enterprise Ireland, other state agencies and our overseas missions is steadfast in its commitment to supporting these exporters through this challenging period, helping them adapt strategically and maintain competitiveness.
Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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674. To ask the Minister for Enterprise, Trade and Employment if his Department intends to conduct a review of the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022, with particular regard to its effectiveness in protecting low-paid hospitality workers; if he has engaged with the Minister for Finance regarding the taxation of tips under the current legislation; if he will examine the feasibility of introducing a statutory exemption from taxation on genuine customer gratuities; and if he will make a statement on the matter. [44920/25]
Alan Dillon (Mayo, Fine Gael)
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The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 commenced on 27th October 2022 and provided, for the first time in Ireland, clarity and transparency to how tips, gratuities, and mandatory service charges are treated.
Ireland has a robust suite of employment rights legislation in place to protect and support workers. This Act further strengthened protections for lower paid workers as well as providing transparency for customers.
The main aims of the Act are as follows:
- to provide clarity on the treatment of tips, gratuities, and service charges;
- to ensure employers cannot make up contractual rates of pay using tips and gratuities
- to oblige employers to display prominently their policy on the distribution of both cash and card tips, and;
- to oblige employers to distribute in a manner that is fair in the circumstances tips that are received in electronic form.
A statutory review process was provided for in the Act. As part of the review, my Department engaged with relevant employer and employee stakeholder groups, and held a public consultation to assess the impact of the legislation after a year in operation.
The responses from stakeholders and the public opinion survey concluded that broadly, the Act is meeting its objectives. The Statutory Review Report was published in April 2024.
While employers are required to include detail on how cash tips are dealt with when displaying their policy towards tips and gratuities, the Act does not impose any other regulation of cash tips.
The Act does not provide for any change in the tax treatment of tips or gratuities and service charges under the Act. All tips and gratuities and service charges are chargeable to income tax under Schedule E of the Taxes Consolidation Act 1997.
Any changes to the tax treatment of payments is a matter for the Minister for Finance.
Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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675. To ask the Minister for Enterprise, Trade and Employment if his Department is tracking the rate of business closures in the independent retail and hospitality sectors in Cork city since January 2025; if he will provide a breakdown, by business type; and the supports or crime prevention initiatives being developed to assist small business owners affected by cost pressures and anti-social behaviour. [44936/25]
Alan Dillon (Mayo, Fine Gael)
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As chair of the Retail Forum I am aware of the issues facing retailers across the country. The Programme for Government is clear on the intention to support small businesses and, in particular, the retail and hospitality sectors.
The establishment of the Small Business Unit within my Department is a recognition of the importance that the Government places on small businesses. We have simplified access to grants and support programmes through the National Enterprise Hub and are ensuring the Local Enterprise Offices are properly resourced to help small businesses.
Two recent supports for the sectors were the Power Up grant and Increased Cost of Business (ICOB) scheme which paid out over €400 million to businesses right across the country.
The Programme for government also commits to publishing a Retail Crime Strategy with targeted actions to reduce retail crime and support affected businesses. The Department of Justice, Home Affairs and Migration has commenced preparation of this Strategy.
From a tourism perspective, we are committed to publishing a new Tourism Policy Statement which reflects the Programme for Government and other Government priorities. Work on drafting the new Statement is at an advanced stage. The new Policy will ensure a strong, resilient tourism sector which benefits every community in Ireland and reflect tourism’s new positioning in the Department of Enterprise, Tourism and Employment.
The CRO is unable to provide the data in the time available and will forward the information directly to the Deputy.
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