Written Answers Nos. 98-117
98. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he and his Department continue to monitor the causes of inflation, both internal and external, and their effects on business, trade and enterprise; the efforts to date in identifying the causes of possible remedies, with particular reference to remedial action; and if he will make a statement on the matter. [16934/24]
View answerMy Department continuously monitors trends in consumer and wholesale prices - whether domestic or international - and those developments which are generating high headline inflation.
Ireland is effectively a price taker on most international markets, and many of the drivers of Irish inflation are outside our control. As a small, open trading economy Ireland is exposed to global inflationary pressures, including fluctuations on international markets for energy, commodities and food. Our remote geographic location can also add to transport costs for goods, which along with our small market size, can add to costs for businesses.
As a result of these inflationary pressures, input costs rose for many Irish businesses, peaking in 2022 and early 2023. In large part, this was driven by high energy costs resulting from the war in Ukraine. However, inflation has moderated significantly over the last number of months.
The Consumer Price Index (CPI) rose by 2.9% between March 2023 and March 2024, down from an increase of 3.4% in the 12 months to February 2024, and well below the annual increase of 7% for March 2023. The ESRI forecast of inflation for 2024 and 2025 is 2.3% and 2% respectively. This moderation in inflation is being driven by a sharp decline in energy prices. The CPI for energy, gas and other fuels in March 2024 was 16.1% lower than in March 2023.
The Harmonised Index of Consumer Prices for Ireland (HICP, which tracks inflation across the EU using a harmonised approach) is estimated to have increased by 1.7% in the 12 months to March 2024. This compares to 2.4% in the Euro Area. The ECB’s target rate over the medium-term is 2%.
The Wholesale Price Index for February 2024 was 3.3% higher than in February 2023, however, there were some significant improvements relative to last year. Of note, wholesale electricity prices were 46.8% lower, while prices for food products were 9.3% lower. Wholesale prices for construction products were 0.7% lower.
Although the Government cannot fully insulate individuals and businesses from developments in international markets, we have been proactive in introducing measures to remedy the fallout from higher rates of inflation. Some of the measures included in Budget 2024 include:
• The 9% VAT reduction for gas and electricity was extended by an additional 12 months, until 31st October 2024;
• The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil which were due to expire on 31 October 2023 were extended until 31 March 2024;
• An increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods;
• The introduction of the Increased Cost of Business Scheme, which will provide a once-off grant to benefit up to 130,000 small and medium businesses at a cost of more than €250 million.
99. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment when the first payments under the increased cost of business grant will issue; and if he will make a statement on the matter. [16939/24]
View answerAs you will be aware, as part of Budget 2024, the Government signed off on a package of €257 million for the Increased Cost of Business (ICOB) grant as a vital measure for small and medium businesses.
Local Authorities, funded through the Department of Enterprise, Trade and Employment, are administering the grant to qualifying businesses on behalf of the Department.
Local Authorities have written to all rate paying businesses with details of how to register for the grant and it is a very simple process for businesses to verify their details through an online portal.
The scheme has been open for registrations since 14 March. The closing date for the ICOB grant is 1 May 2024. I urge all eligible businesses to register for this grant as soon as they receive a letter from their Local Authority. The sooner a business registers the sooner their details will be verified and the grant will be paid out. Local Authorities will begin to send payments to eligible businesses from Monday next 22 April.
100. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment the total value of Ireland’s imports from Israel since 7 October 2023; the total value of Ireland’s exports to Israel since 7 October 2023; and if he will make a statement on the matter. [16848/24]
View answerThe Central Statistics Office compiles goods trade data for individual countries on a monthly basis. This data is available from the month of October 2023 but not from the specific date of 7 October.
According to the most recent data available from the CSO, the value of goods imports from Israel in the period October 2023 to end February 2024 was €1,559 million. The value of goods exports to Israel in the period October 2023 to end February 2024 was €264 million.
Services trade data for individual countries is not yet available for 2023 or 2024.
101. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he continues to remain satisfied that any threats to enterprise, trade and employment continue to be adequately monitored in order to ensure provision is made, insofar as is possible, for both foreseen and unforeseen eventualities; and if he will make a statement on the matter. [16933/24]
View answerMy Department continues to monitor risks to economic activity and employment for both the locally- traded and international sectors of the economy.
As set out in Budget 2024, risks in the near-term are tilted to the downside. The rise in interest rates, which the ECB does not expect to cut before Summer, would be expected to dampen international growth. Given the open nature of the Irish economy, a slowdown in international growth may lead to more moderate rates of domestic growth. Demand cyclicality can also have implications for sectoral economic growth – such as the demand for pharmaceutical products which had seen significant growth during the COVID-19 pandemic, bolstering Irish exports during that period. As an open economy, we are also aware of the risks presented by which any rise in protectionism internationally.
Despite these risks Ireland’s economy has demonstrated substantial resilience over the past number of years and into 2024, reaching full employment during a challenging period for the global economy, with an unemployment rate of 4.3% in March. The risks to employment will depend on the risks to the economy, more broadly. Added to this, Irish GDP grew by 15.1% in 2021, and 9.4% in 2022, therefore, a moderation in economic growth might naturally be expected. A moderation in growth is also forecast by the ESRI in their recent Quarterly Economic Commentary (Spring 2024), with GDP growth of 2.5% and 2.3% forecast for 2024 and 2025 respectively.
The Government’s commitment to supporting enterprise through periods of increased input costs and heightened uncertainty was demonstrated in Budget 2024, which contained a number of measures to support businesses. This included the Increased Cost of Business Grant, and an extension of the 9% VAT reduction for gas and electricity (until 31st October 2024), among other measures. Further measures were announced in response to the publication by my Department, and the Department of Social Protection, of an impact assessment of recent and forthcoming changes to working conditions.
As set out, my Department continues to monitor sectoral economic activity and risks to this activity. As with the supports which were provided to help businesses with rising inflation, there is a limit to how much direct support Government can offer firms to shelter them from international economic developments and associated risks.
The Government’s approach to enterprise policy continues to be guided by the priorities set out in the White Paper on Enterprise 2022-2030 – published in December 2022. This review of Enterprise Policy was the first since 2018 and was motivated by an awareness of a changing enterprise landscape posing new challenges, including shifting patterns of globalisation driven by geopolitical change, disruptive technological innovation, and lagging productivity in parts of the indigenous sector of the economy.
102. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment the steps being taken by his Department to assist businesses in Ireland to decarbonise, particularly in light of the findings of a report (details supplied) which found that 86% of businesses reported that they had no set commitments or targets in relation to carbon; and if he will make a statement on the matter. [16849/24]
View answerAs the Deputy has highlighted, many businesses are still to embark on their decarbonisation journey. We need to bring all enterprises with us as we transition to a more sustainable, low carbon economy. I am conscious that businesses - particularly smaller businesses - have many competing priorities at present. I and my Department are focussed on engaging businesses in the green transition, and demonstrating that there are simple, cost-effective things every company can do to get started.
The Climate Toolkit 4 Business is the Government’s online tool which generates an estimated carbon footprint for a business alongside a tailored climate action plan - and is particularly useful for SMEs. The Toolkit was launched in December 2021 and to date over 12,400 tailored climate action plans have been generated for businesses.
My Department and agencies offer a multitude of supports for decarbonisation to ensure there a comprehensive suite of options available to all businesses. Throughout 2023, my predecessor held nine Building Better Business events across the country in support of the Regional Enterprise Plans. Decarbonisation and the broader green transition were a core message of these events and saw significant engagement from the businesses in attendance.
Thousands of businesses are being supported through the Green Transition Fund, SEAI energy programmes, SkillNet Ireland training, the LEO Green for Business programme, and a range of other advisory, training and grant aid offerings.
My Department will shortly publish two decarbonisation Roadmaps; one for our manufacturing industry and one for our commercial built environment. The roadmaps will signal to businesses the key policy interventions to decarbonise those sectors’ heat use, including the supports available to businesses to decarbonise, the regulations to promote decarbonisation, and the enabling measures that will help facilitate the transition.
My Department, and key state agencies, are working to ensure that all businesses in Ireland are activated and engaged in the green transition and the broader sustainability agenda. This will be a crucial component of ensuring Ireland’s economy remains competitive, resilience and sustainable as we progress towards our target to be net zero by 2050.
103. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment the measures that will be implemented to assist businesses, particularly in the hospitality and retail sectors, and also small-scale manufacturing, to meet additional costs and protect employment; and if he will make a statement on the matter. [16980/24]
View answer117. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment if he will give positive consideration to introducing supports to struggling small and medium-sized businesses to meet the increased costs they are facing. [16694/24]
View answer126. Deputy Mairéad Farrell asked the Minister for Enterprise, Trade and Employment the steps he will take to address the cost of doing business in the State; and if he will make a statement on the matter. [16193/24]
View answerI propose to take Questions Nos. 103, 117 and 126 together.
I recognise that firms have faced a significant challenge in facing multiple crises alongside cost increases over the last number of years, including Brexit, the COVID -19 pandemic, the Russian war in Ukraine and the associated supply chain shock, the energy cost crisis and rising inflation along with wage demands, and rising interest rates. It should be noted that not all cost increases however are attributable to Government measures.
The Government has advanced a range of measures to improve working conditions in Ireland over recent years. These improvements will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies, albeit that these will inevitably give rise to additional costs for some firms.
My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of these 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 the Right to Request Remote Working. This report was published on the 5th March and in response to the findings 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. In addition, an options paper on the application of the lower 8.8% rate of Employer PRSI contribution is currently being prepared and we will also take steps 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 is in addition to a €257 million package for the Increased Cost of Business grant. Local authorities, funded through the Department of Enterprise, Trade and Employment (DETE), are managing the rollout of the grant to qualifying businesses, and have written out to rate paying businesses with details of how to register for the scheme and it is up to businesses to verify their details through an online portal. This scheme is designed to help SME’s.
The Government recognises that there is an increased cost burden on firms arising from these measures, however, there is also a need for balance in considering the current position of enterprise. The PwC Insolvency Barometer reveals a current annual failure rate of 28 companies per 10,000. This remains lower than pre-pandemic levels. While here has been an increase, business failures remain at historically low levels. The pre-pandemic level of insolvency was 36 per 10,000 recorded in 2019. Recent research from the Central Bank of Ireland has shown that unit profits of Irish firms continued to increase throughout the energy price crisis.
This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years. 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.
104. Deputy James Lawless asked the Minister for Enterprise, Trade and Employment the number of businesses in counties Kildare, Wicklow, Meath and Louth, respectively, that have registered for the increased cost of business grant to date; when payments under the grant will commence; and if he will make a statement on the matter. [16883/24]
View answerAs you will be aware, as part of Budget 2024, the Government signed off on a package of €257 million for the Increased Cost of Business (ICOB) grant as a vital measure for small and medium businesses.
Local Authorities, funded through the Department of Enterprise, Trade and Employment, are administering the grant to qualifying businesses on behalf of the Department.
Local Authorities have written to all rate paying businesses with details of how to register for the grant and it is a very simple process for businesses to verify their details through an online portal.
The grant has been open for registrations since 14 March. The closing date for registrations for the ICOB grant is 1 May 2024. I urge all eligible businesses to register for this grant as soon as they receive a letter from their Local Authority. The sooner a business registers the sooner their details will be verified and the grant will be paid out. Local Authorities will begin to send payments to eligible businesses from Monday next 22 April.
In relation to the uptake of the scheme in the counties referred to in the question, the latest figures as at Tuesday 16th April are as follows:
Kildare has 1320 registrations which is 26% of businesses notified
Wicklow has 1104 registrations which is 36% of businesses notified
Meath has 1181 registrations which is 32% of businesses notified
Louth has 959 registrations which is 31% of businesses notified
105. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment if he intends to bring forward new legislation to transpose the EU Directive on Adequate Minimum Wages; and if he will meet with four unions (details supplied) in relation to a campaign and the transposition of this directive. [16845/24]
View answerThe EU Directive on Adequate Minimum Wages includes two key areas: Minimum Wages, and Collective Bargaining. The Directive requires Ireland to develop an action plan to enhance collective bargaining coverage by the end of 2025.
The Directive must be transposed into Irish law by 15th November 2024. My Department has received legal advice on the minimum wage elements of the Directive that Ireland’s current minimum wage setting framework, namely the Low Pay Commission, is largely already in compliance with the provisions of the Directive. My Department has also requested legal advice as to whether any legislative change is required in order to transpose Article 4 on collective bargaining.
A technical working group has been established with the social partners to progress Ireland’s implementation of the Directive in relation to collective bargaining and the development of the action plan. This group will examine both legislative and administrative proposals for inclusion in the action plan.
I am aware of the Respect at Work campaign. The Government fully supports the right of any worker to join and be active in their trade union.
106. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on whether employee-owned businesses and workers co-operatives offer a solution to succession crises, where they arise, among family-owned businesses; and if he will expedite the delivery of the co-operative societies Bill, inclusive of the recommendations of the Oireachtas Joint Committee on Enterprise, Trade, and Employment. [16753/24]
View answerThe Co-operative Societies Bill is being drafted being mindful of the diverse nature of the co-operative sector. The Bill aims to provide as much flexibility as possible, thereby empowering individual co-operative societies to make appropriate provision in their rules to reflect the nature of their operations and their own particular ethos. Accordingly, the provisions are broadly applicable and it is not intended to include definitions or provisions specific to any particular types of co-operatives. This non-prescriptive approach is intended to facilitate the wide variety of co-operatives in Ireland in terms of scale, types of activity, commercial or not-for-profit focus etc. and seeks to ensure that the legislation facilitates this diversity and does not unduly restrain how co-operatives choose to operate.
The concept of a co-operative and the requirement to adhere to the co-operative principles are being given a legislative basis for the first time. It will be easier to set up and operate a co-operative, with a reduction in the required number of founding members; provision for virtual meetings; the availability of audit exemption for small co-operatives etc. These all help to make co-operatives a more attractive corporate structure, for any type of co-operative including those who wish to reflect a worker-owned or social enterprise model.
My Department is not aware of any distinctive difficulties or challenges in relation to succession planning that would require specific provisions in the proposed co-operative legislation. I have been informed that the issue of succession planning has not arisen in any of the extensive public consultations or bilateral engagements undertaken by my Department in the context of preparing the general scheme. Succession planning can be a challenge whether for family-owned businesses or for those with a broader ownership base and may arise irrespective of the corporate form of the business. As addressed previously, a modern legislative basis will provide an attractive option for those who are committed to the co-operative model. This applies in relation to business start-ups and situations regarding transition of existing businesses.
Issues raised during pre-legislative scrutiny and bilaterally by stakeholders have been given careful consideration and have helped to inform the ongoing drafting of the Bill. My Department continues to work closely with the Office of the Parliamentary Counsel in relation to the drafting. Due to the length of the Bill and its complex nature, it is not envisaged that drafting will be finalised and the Bill brought to Government for publication until end of Quarter 2 of this year. There has been strong support for modernising the legislation governing the co-operative model and my Department has continued to engage with relevant stakeholders to develop the Bill. Once the Bill is published, I look forward to the support of Members of both Houses with a view to facilitating early enactment.
107. Deputy Niamh Smyth asked the Minister for Enterprise, Trade and Employment what supports are in place for financial assistance by way of grants for the self-employed; what agencies offer these supports in counties Cavan and Monaghan; and if he will make a statement on the matter. [16699/24]
View answerI would recommend that anyone looking to start their own business or become self employed to first speak with their Local Enterprise Office (LEO). The Cavan LEO is located in the Cavan Innovation and Technology Centre, Dublin Road, Cavan. The Monaghan LEO is located in Unit 9, M:TEK Building, Knockaconny, Monaghan.
The LEOs are the ‘first-stop-shop’ for providing advice and guidance, financial assistance, and other supports to those wishing to start or grow their own business. The LEOs also provide a ‘signposting’ service for all Government supports available to the SME sector and provide information and referrals to other relevant bodies under agreed protocols.
I would particularly recommend that anyone exploring self-employment enquire about the Start Your Own Business (SYOB) Programme, which assists participants in assessing their business idea, its viability and then making an informed decision on whether to proceed or take a step back. The programme is designed to guide participants through the various aspects of business and business planning with no prior business knowledge necessary.
The Local Enterprise Offices can offer direct grant aid to small businesses operating in the manufacturing and internationally traded services sector. The LEOs also provide funding for consultancy supports in Lean, Green and Digital.
The LEOs can provide a referral to Micro Finance Ireland (MFI), which is a not for profit lender that offers small business loans of between €2,000 and €25,000 (unsecured). Loans for commercially viable proposals can be used to help fund start-up costs, working capital or business expansion and by applying through their Local Enterprise Office, clients can avail of a 1% reduction in the interest rate charged.
There are also number of Tax Credits which can be applied if you are a sole-trader, such as the Start Up Refunds for Entrepreneurs (SURE) scheme, which is a tax refund scheme that allows eligible people to get a refund of up to 41% of the capital they invest in starting a business. Under the SURE scheme, you may be entitled to a refund of PAYE income tax that you paid over the 6 years before the year in which you invest.
I would strongly recommend speaking to a Business Advisor in a Local Enterprise Office as they have the experience and knowledge to help those who are self-employed.
109. Deputy Jackie Cahill asked the Minister for Enterprise, Trade and Employment the number of businesses in counties Tipperary, Limerick and Clare, respectively, that have registered for the increased cost of business grant to date; when payments under the grant will commence; and if he will make a statement on the matter. [16884/24]
View answerAs you will be aware, as part of Budget 2024, the Government signed off on a package of €257 million for the Increased Cost of Business (ICOB) grant as a vital measure for small and medium businesses.
Local Authorities, funded through the Department of Enterprise, Trade and Employment, are administering the grant to qualifying businesses on behalf of the Department.
Local Authorities have written to all rate paying businesses with details of how to register for the grant and it is a very simple process for businesses to verify their details through an online portal.
The grant has been open for registrations since 14 March. The closing date for registrations for the ICOB grant is 1 May 2024. I urge all eligible businesses to register for this grant as soon as they receive a letter from their Local Authority. The sooner a business registers the sooner their details will be verified and the grant will be paid out. Local Authorities will begin to send payments to eligible businesses from Monday next 22 April.
In relation to the uptake of the scheme in the counties referred to in the question, the latest figures as at Tuesday 16th April are as follows:
Tipperary has 1159 registrations which is 29% of businesses notified
Limerick has 1377 registrations which is 29% of businesses notified
Clare has 838 registrations which is 27% of businesses notified
110. Deputy Jackie Cahill asked the Minister for Enterprise, Trade and Employment the status of the implementation of the Action Plan for Insurance Reform measures that fall under the remit of his Department; and if he will make a statement on the matter. [16885/24]
View answerMy Department has been involved in the Action Plan for Insurance Reform from the beginning.
The actions that have been allocated to my Department under the Action Plan are:
As part of the Sub-Group of the Cabinet Committee on Economic Recovery and Investment to agree and publish an Action Plan,
As part of the Sub-Group of the Cabinet Committee on Economic Recovery and Investment to make a report to Government on progress by end of 2020,
As part of the Sub-Group of the Cabinet Committee on Economic Recovery and Investment to meet regularly, engage with stakeholders and publish progress of actions every six months,
Enhancing and reforming the role of the Personal Injuries Assessment Board,
Giving the Competition and Consumer Protection Commission more effective enforcement powers to punish and deter anti-competitive conduct, and
Creating an office within Government tasked with encouraging greater competition in the Irish insurance market.
Action 1
My Department was originally responsible for the publication of the Action Plan for Insurance Reform on 8 December 2020. The Report detailed 66 actions.
Action 2
95% of these actions have now been implemented according to the 4th Implementation Report on the Action Plan for Insurance Reform which was published on 29 February 2024.
Previous Implementation Reports have been published in July 2021, February 2022 and November 2022.
Action 3
I continue to attend the Sub-Group of the Cabinet Committee on Economic Recovery and Investment which oversees it.
Action 4
The Action Plan set as one of its key measures the enhancement and reform of the role of the Personal Injuries Assessment Board. I have striven to ensure that this has been put in place since commencing office. The Personal Injuries Resolution Board Act 2022, which achieves these goals, was enacted on 13 December 2022 and commenced through a series of commencement orders during 2023. This phased commencement was to ensure that both the Board and stakeholders in the personal injury claims environment were effectively prepared for the introduction of its measures.
The Act transforms the Injuries Resolution Board by enabling it to offer mediation, retain more cases, address the possibility of fraudulent claims and gives it a data gathering and reporting role. A mediation service is being introduced also on a phased basis with mediation for employer liability claims introduced in December 2023. Mediation for public liability claims is scheduled to commence in May 2024 and for motor liability claims in September 2024.
These measures are intended to facilitate an increase in the number of personal injury claims that may be resolved through the Board’s cost-efficient process and without recourse to litigation. This will save both money and time for those involved in personal injury claims
To take into account the wider role that the Board now plays in the personal injury claims environment Its name has been changed, under the Act, to the Personal Injuries Resolution Board.
Action 5
With regard to those actions under the Action Plan which involved giving the Competition and Consumer Protection Commission more effective enforcement powers to punish and deter anti-competitive conduct, the Competition (Amendment) Act 2022 was signed into law on the 29 of June 2022. The Act, which I commenced on 27 September 2023, represents a step change in competition enforcement for Ireland. It provides for a new civil enforcement regime for the CCPC and ComReg under which breaches of competition law can be enforced through administrative sanctions with maximum fines of up to €10 million or 10 per cent of total worldwide turnover, whichever is the greater.
Action 6
Officials in my Department are members of the Office to Promote Competition in the Insurance Market, chaired by the Department of Finance, which seeks to encourage greater competition between existing insurers in the Irish market, including through expanding product offering and encouraging new entrants to enter the insurance market.
111. Deputy Mairéad Farrell asked the Minister for Enterprise, Trade and Employment to provide the most up-to-date information regarding the increased cost of business scheme; if the scheme is open for applications; and if he will make a statement on the matter. [16768/24]
View answerAs you are aware, as part of Budget 2024, the government signed off on a package of €257 million for the Increased Cost of Business (ICOB) grant as a vital measure for small and medium businesses.
Local authorities, funded through the Department of Enterprise, Trade and Employment (DETE), are administering the grant to qualifying businesses on behalf of the Department.
Local Authorities have written out to rate paying businesses with details of how to register for the grant and it is up to businesses to verify their details through the online portal.
Businesses are eligible for the grant if they comply with the following:
• The business is a commercially trading business operating directly within a premises that is commercially rateable by a Local Authority and intends to trade for a 3-month period following registration.
• The business has provided confirmation of its bank details to the respective Local Authority.
• The business is rates compliant, including those businesses with a phased payment arrangement in-place.
• The business is tax compliant, and in possession of a valid Tax Registration Number.
The grant available to eligible businesses is as follows:
• For qualifying businesses with a 2023 Commercial Rate bill of less than €10,000, the ICOB grant will be paid at a rate of 50% of the business’s Commercial Rate bill for 2023.
• For qualifying businesses with a 2023 Commercial Rate bill of between €10,000 and €30,000, the ICOB grant will be €5,000.
• Businesses with a 2023 Commercial Rates bill greater than €30,000 are not eligible to receive an ICOB grant.
The scheme is open for registrations since 14 March. The closing date for applications for the ICOB grant is 1 of May 2024. I would urge all eligible businesses to register for this grant as soon as they receive their letter from their Local Authority. The sooner a business registers the sooner their details will be verified and the grant will be paid out. Local Authorities will begin to send payments to eligible businesses from Monday next 22 April.
112. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment the status of the progress being made to acquire an IDA Ireland purpose-built facility in Longford town; and if he will make a statement on the matter. [16882/24]
View answerIDA Ireland’s Regional Property Programme is aimed at supporting economic development and job creation across the country by making property solutions available to its own as well as Enterprise Ireland and LEO clients. In this regard, the provision of property solutions is a key element of IDA’s marketing of the Midlands Region, including Longford and the IDA has committed to build an Advanced Building Solution, or ABS, in Longford to support the winning of new investment and job creation.
While the site selection process is commercially sensitive until a land acquisition has been completed, IDA Ireland continues to explore all possible options to identify and secure suitable lands aligned with investor needs. In this regard, I am advised that the IDA continue to liaise with Longford County Council and with wider stakeholders in this regard to seek a suitable site for the proposed Advance Building Solution (ABS). The specific dates for commencement of construction are wholly dependent on, and subject to, the successful outcome of this process and there are many factors that impact on timelines for the delivery of construction projects. The IDA is using its best endeavours to deliver the building in Longford in a timely manner having regard to these market dynamics.
113. Deputy John Lahart asked the Minister for Enterprise, Trade and Employment if new mediation measures are providing a significant step change for resolving insurance claims nationwide; and if he will make a statement on the matter. [16887/24]
View answerThe reform and enhancement of the Injuries Resolution Board, with the overarching aim to have more claims settled through the agency, has been a priority for me since taking office.
The Personal Injuries Resolution Board Act 2022 was enacted in December 2022 and commenced over three phases in 2023. The Act transforms the agency by enabling it to retain more cases, gives it a data gathering and reporting role, and significantly introduces a mediation service by the Board to help resolve personal injuries claims. The introduction of mediation I believe will result in more claims being settled through the Board in a faster timeframe and thus avoiding the need for lengthy and costly litigation.
Mediation is widely recognised as an effective way of resolving disputes quickly and in a cost-effective manner. This service will help parties to reach a mutually acceptable solution in personal injury claims and is a significant step change for resolving injury claims in our country. Mediation can address a broader range of issues than those currently considered in the Board’s assessment service, including liability, claim value, extent of injury, and contributory negligence among others. It also has the advantage of being quicker than assessment which will benefit those making the claim and the insured alike.
The service is being introduced on a phased basis, with mediation for employer liability claims introduced by the Board on 14 December 2023. I intend to commence mediation for public liability injury claims in May 2024 and for motor liability claims in September 2024. The Board has put in place a panel of professionally trained mediators to provide this service.
The mediation service is in its infancy and under the legislation respondents have up to 90 days to respond to a notice of claim so it will take time to see trends. Initial engagement with stakeholders has been positive, and provisional figures indicate some 37% of claimants so far are opting for mediation which is a very strong and positive initial response.
Since the Injuries Resolution Board was established in 2004, over 150,000 claims have been assessed with a value of over €1.5 billion in accepted awards saving millions in litigation costs. In 2022, alone, the amount saved in avoided costs due to litigation claims was €40 million.
An extensive programme of stakeholder engagement and a communications campaign highlighting mediation is being rolled out by the Injuries Resolution Board throughout 2024. Stakeholder engagement with fora of the Department of Enterprise, Trade and Employment, including the Enterprise Forum and the Retail Forum, has already taken place and was positively received in Quarter 1 2024.
114. Deputy Pearse Doherty asked the Minister for Enterprise, Trade and Employment if he will consider supports for businesses facing increased labour costs through the PRSI system; and if he will make a statement on the matter. [17062/24]
View answerThe PRSI Roadmap outlines planned annual increases in Pay Related Social Insurance (PRSI) over the period 2024 to 2028, intended to increase the sustainability of the social insurance fund (SIF), given the retention of the State Pension age at 66 is government policy and the commitment to introduce ‘Pay-Related Benefit’, a social insurance benefit set to replace Jobseeker’s Benefit.
The approach follows on from the report of the Commission on Pensions and the Actuarial Review of the SIF. The commitment to consider increasing PRSI to pay for Pay-Related Benefit, among other things, was included in the Programme for Government and the Economic Recovery Plan 2021 committed to bringing forward proposals on this on foot of lessons from the pandemic.
One of the findings in the Actuarial Review of the SIF published in March 2023 was that it would be possible to address the projected funding crisis in the social insurance system in the steady-state scenario by, beginning immediately, increasing PRSI rates by 0.08 of a percentage point per annum every year up to 2076. In addition to addressing the SIF’s sustainability challenges, it was envisioned that an increase in PRSI rates was necessary to fund a Pay-Related Benefit scheme for newly unemployed jobseekers.
As of 2022, the old-age dependency ratio (the ratio of working aged people to those over the age of 64) was 22.7 percent. This is forecast to rise to 41.1 percent by 2051. This means that the ratio of working aged people compared to those over the age of 64 will almost halve compared to the current position. Absent appropriate policy changes such as the PRSI rate increases, is forecast to put substantial stress on the social welfare system.
Alongside these changes to the PRSI system, the Government has also advanced a range of measures to improve working conditions in Ireland over recent years. These improvements will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies, albeit that these will inevitably give rise to additional costs for some firms.
My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of these 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 the Right to Request Remote Working. This report was published on the 5th March and in response to the findings, 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. In addition, an options paper on the application of the lower 8.8% rate of Employer PRSI contribution is currently being prepared and we will also take steps 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 is in addition to a €257 million package for the Increased Cost of Business grant. Local authorities, funded through the Department of Enterprise, Trade and Employment (DETE), are managing the rollout of the grant to qualifying businesses, and have written out to rate paying businesses with details of how to register for the scheme and it is up to businesses to verify their details through an online portal. This scheme is designed to help SME’s.
This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years. 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.
115. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment his plans to improve job quality and pay in the childcare sector; and if he will make a statement on the matter. [17046/24]
View answerResponsibility for the Childcare sector comes under the remit of my colleague the Minister for Children, Equality, Disability, Integration and Youth, Roderic O'Gorman.
There is a Joint Labour Committee (JLC) in place for the Early Learning and Childcare sector. Joint Labour Committees are independent in their functions.
On the 7th September 2022 the then Minister of State for Business, Employment and Retail accepted proposals for Employment Regulation Orders for the Early Years Services Sector. The Orders commenced on 15 September 2022 and provided new minimum hourly rates of pay for various roles in the Early Years Services Sector. The full details of these EROs are publicly available online: S.I. No. 457/2022 - Employment Regulation Order (Early Years’ Service No. 1 Joint Labour Committee) 2022 (irishstatutebook.ie) and S.I. No. 458/2022 - Employment Regulation Order (Early Years’ Service No. 2 Joint Labour Committee) 2022 (irishstatutebook.ie)
If the JLC adopts proposals for a further ERO for the childcare sector, it will submit them to the Labour Court for consideration. The Labour Court will then make a decision on the adoption of the proposals. If the Court decides to adopt the proposals, a copy will be presented to me and, if I consider it appropriate to do so, I will make an ERO giving effect to the proposals.
I have not to date received a proposal from the Labour Court in relation to a new ERO.
116. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment his Department’s plans to implement the statutory sick pay scheme. [17043/24]
View answerAs I have already set out for the Deputy, the Sick Leave Act which commenced on 1 January 2023 provided an initial statutory entitlement of 3 days which increased to 5 days on 1 January 2024. This will potentially increase to 7 days in 2025 and 10 days in 2026.
Payment by employers to employees for statutory sick leave days is currently set at 70% of an employee’s average gross earnings, up to daily cap of €110. The rate of 70% was chosen to ensure excessive costs were not placed on employers, who in certain sectors may also have to deal with the cost of replacing staff who are out sick at short notice.
However I know that some businesses, particularly SMEs, are facing increased costs and have concerns about the cumulative impacts of increased labour regulation. That is why the Government has introduced a range of measures to support these businesses in adjusting to new measures to improve working conditions, along with more generally improving the cost competitiveness of firms.
Officials in my Department are carefully assessing the impact of statutory sick leave on businesses by sector and company size to inform the decision in respect of the timing and scale of the next phase in the rollout of the scheme, including the number of days covered.
