Dáil Éireann Debate, Thursday - 18 October 2018
17. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the actions in budget 2019 to reduce the costs of doing business here and reverse Irish competitiveness deficiencies; and if she will make a statement on the matter. [42562/18]
View answerNotwithstanding our strong economic growth, addressing Ireland’s cost competitiveness remains a key economic priority for Government and we continue to monitor Ireland's cost base and analyse the factors that are crucial to improving our cost competitiveness.
The Costs of Doing Business in Ireland 2018 Report, and the Ireland’s Competitiveness Scorecard 2018, published by the National Competitiveness Council (NCC), found that Ireland's cost base for enterprise is internationally competitive across a range of metrics (e.g. the cost of starting a business, communications costs and average income taxes). However, the Council also highlighted that Ireland remains a relatively high cost location and cost pressures are evident in residential property, credit, energy, labour and business service costs. To that end, the range of personal taxation cuts announced in last week’s budget will reduce labour cost pressures and be welcomed by enterprise.
A range of initiatives set out in the Action Plan for Jobs 2018 are in train across Government Departments to enhance our cost competitiveness and productivity, improve the ease of doing business, reduce the administrative burden and drive greater efficiencies across the enterprise base.
Enterprise 2025 Renewed - which I launched in March - placed an increased emphasis on enhancing our competitiveness position by developing indigenous enterprises. Budget 2019 contained a number of taxation measures designed to progress that aim. The extension of the start-up tax relief for new companies, the targeted amendments to the Key Employee Engagement Programme (KEEP) share option scheme and the announcement of a set of priority measures designed to improve the working of the Employment Investment Incentive Scheme (EIIS) are all evidence of the Government’s commitment in this regard.
Following the allocation of additional funding for my Department in last week’s budget, I announced The Future Growth Loan Scheme, which will provide up to €300m in funding over longer terms, with less onerous conditions and at competitive rates to eligible businesses.
Another measure specifically aimed at boosting productivity was the doubling of the Retail Online Pilot Scheme to €1.25m which will boost the online presence of our retail sector and allow them to compete in new markets and retain existing business.
The Enterprise development agencies under my remit also play a key role in supporting firms who innovate and increase productivity. I allocated an additional €10m to IDA to support that Agency’s Regional Property Programme which will ensure that our regions can provide suitable office and manufacturing buildings in order to compete for and attract foreign direct investment.
Last week’s budget also saw me award an additional €2.75M to Enterprise Ireland for its SME Regional Innovation and Technology Clusters Programme. Initiatives such as this which build links between industry and our Institutes of Technology can boost firm productivity growth and resilience.
These newly announced measures are in addition to a wide range of existing supports provided by my Department and Agencies. Enterprise Ireland has long placed a strong emphasis on competitiveness. It supports exporting enterprises with initiatives in Lean, research, development and innovation, and management development. The Agency helps enterprises to take a strategic approach to understanding and responding to potential implications arising from Brexit and assists them to enter into new markets and diversify their export base. The Local Enterprise Offices offer a suite of supports to enhance the competitiveness of small and micro enterprises. Initiatives include mentoring, innovation vouchers, Lean Start and access to a Brexit diagnostic and guidance.
