Dáil Éireann Debate, Tuesday - 9 April 2024
389. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment the measures he is considering for SMEs to assist in high staffing costs due to the proposed increases in minimum wage, sick pay entitlements, pension contributions and employer PRSI; and if he will make a statement on the matter. [15207/24]
View answer390. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment if the current volatile business environment and national competitiveness difficulties experienced by SME’s are being considered in changing the current planned phased measures scheduled to commence in 2024; and if he will make a statement on the matter. [15208/24]
View answerI propose to take Questions Nos. 389 and 390 together.
The Government has advanced a range of measures to improve working conditions in Ireland, including the transition to a Living Wage, Auto-Enrolment Retirement Savings, Parent’s Leave and Benefit, Statutory Sick Pay, an Additional Public Holiday, the Living Wage, and Remote Working. These improvements will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies.
My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of changes to working conditions, including Auto-Enrolment Retirement Savings Scheme, Parent’s Leave and Benefit, Statutory Sick Pay, the Additional Public Holiday, the Living Wage, and Remote Working. This report was published on the 5th March. The paper recognises that businesses may face rising costs, in particular in the short term. Reflecting the findings of this assessment, a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve cost competitiveness of firms.
These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000; preparation of an options paper on the application of the lower 8.8% rate of Employer PRSI contribution; a range of measures to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms.
This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years, including the introduction of unemployment supports during the COVID -19 pandemic, the provision of financial supports to firms facing the implications of Brexit, and more recently, through the period of increasing overhead costs. My Department is fully committed to supporting businesses and the measures included in Budget 2024, and more recently in the measures announced following the publication of the ‘Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’ reflect this.
