Dáil Éireann Debate, Wednesday - 6 April 2011
83 Deputy Séamus Kirk asked the Minister for Enterprise, Trade and Innovation if he is considering a comprehensive analysis of the cost of overheads for the small to medium enterprises in Ireland; and if he will make a statement on the matter. [6951/11]
Amharc ar fhreagraThe small and medium sized enterprise sector, like most other sectors of the economy, has been affected by the global economic crisis and by the loss of competitiveness of the Irish economy in recent years.
The National Competitiveness Council (NCC) monitors and analysis costs and other competitiveness issues in the Irish economy through its suite of reports, including its annual "Benchmarking Ireland's Performance" report and regular reports on the "Costs of Doing Business in Ireland". These reports look at the whole of the enterprise sector, including costs which affect SMEs.
The most recent reports, published in July 2010, show that Ireland has regained some of its cost competitiveness in the last two years — for example through reductions in electricity and gas prices for business, and the reduction or freezing of Local Authority rates. However, this Government is committed to doing more to reduce the cost base for business.
In this context, I will be working with my Government colleagues to identify actions that can be taken across Government Departments to further cut costs to business and remove obstacles to employment creation.
For example, the Programme for Government sets out the Government's plans to introduce a Jobs Fund which will facilitate jobs growth and sustainable enterprise. The measures outlined in the Programme for Government include halving the lower rate of employer's PRSI up to end 2013 on jobs paying up to €356 per week, and cutting the 13.5% rate of VAT to 12% up to end 2013 to help labour-intensive economic activity.
The Government will introduce a Jobs Budget within its first 100 days in office to give effect to these, and other measures that will support small and medium sized enterprises.
