Dáil Éireann Debate, Thursday - 23 February 2023
103. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment how the new White Paper on Enterprise will help reduce the cost of doing business; and if he will make a statement on the matter. [9096/23]
Amharc ar fhreagraThe White Paper sets out the Government’s enterprise priorities in the period to 2030. It also highlights the importance of a competitive economic environment for the success of enterprise.
Areas which are cited as being important ‘framework conditions’ to establish a competitive economic environment include quality infrastructure; skills, talent and workforce development; adequate access to finance; taxation; a well-functioning regulatory system; and the cost of doing business.
As highlighted in the White Paper on Enterprise, as an open small economy, Ireland is effectively a price taker for many goods and services which drive the cost of doing business. This has been most evident in the inflation seen in energy markets and which has significantly increased costs for many businesses.
The focus of Government in terms of reducing the costs of doing business is on area which it can influence, in particularly those which are locally-traded to a greater extent.
Actions to address the lack of competition in areas such as banking and insurance are key to reducing costs to business. The Government continues to implement the Action Plan for Insurance Reform. Alongside this, the Government will continue to make strategic investments in infrastructure which will lower the costs of doing business, including in security of energy supply in underpinning the needs of Irish enterprises and promoting Ireland as a base for future investment.
While implementation of the White Paper will focus on achieving medium and longer term targets across seven identified enterprise policy priorities, Government has already taken a number of steps to provide support to businesses that are facing rising costs. As part of Budget 2023, a significant package of assistance was introduced to support businesses with their energy bills. This included the introduction of the €1.25 billion Temporary Business Energy Support Scheme, the Ukraine Enterprise Crisis Scheme and the Ukraine Credit Guarantee Scheme (UCGS).
Earlier this week, in light of the ongoing challenges facing businesses Government agreed to extend the Temporary Business Energy Support Scheme for a further three months and to widen the entry criteria significantly, with the maximum monthly claim limit also increased from up to a maximum of €10,000 per month to €15,000.
Alongside the Temporary Business Energy Support Scheme, the reduced rate of VAT on gas and electricity from 13.5% to 9% has been extended until October. By supporting businesses to meet energy costs, this measure will help protect the jobs of those working in impacted sectors. Government has also agree to stagger the restoration of excise rates over three phases. As a further effort to tackle the impact of rising costs, the reduced 9% VAT rate for hospitality has also been extended to August of this year.
