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Business Supports

Dáil Éireann Debate, Thursday - 8 February 2024

Thursday, 8 February 2024

Ceisteanna (18, 53, 67)

Martin Browne

Ceist:

18. Deputy Martin Browne asked the Minister for Enterprise, Trade and Employment for an update on his engagement with the hospitality sector in 2024. [5673/24]

Amharc ar fhreagra

Louise O'Reilly

Ceist:

53. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment for an update on his engagement with the hospitality sector in 2024. [5570/24]

Amharc ar fhreagra

Pauline Tully

Ceist:

67. Deputy Pauline Tully asked the Minister for Enterprise, Trade and Employment for an update on his engagement with the hospitality sector in 2024; and if he will make a statement on the matter. [5759/24]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 18, 53 and 67 together.

The Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Ms Catherine Martin T.D., and I co-chair the Hospitality and Tourism Forum.

Membership of the Forum is made up of representatives from across the Hospitality and Tourism Sector. It provides a platform for a structured engagement between these sectors and relevant Government Departments, for key issues of relevance to the sectors to be discussed with a view to identifying practical actions which could be taken by government (national or local), or by industry itself, to support the sectors.

The Forum aims to meet quarterly. The last meeting took place on 24 January 2024.

Last month, I also met with representatives from the Restaurant Association of Ireland.

At both meetings, many issues affecting the sector were discussed for the hospitality sector including VAT rates, insurance costs, the increased costs in energy, and the new employment rights legislation and associated costs.

The Government are acutely aware that many businesses in all sectors are concerned about these issues.

With that in mind, as part of the Budget 2024 package, and in order to help businesses with their increasing overheads, the Government announced the introduction of the Increased Cost of Business (ICOB) grant, which is intended to aid firms with the challenge posed by increased costs. Officials in my Department are currently working with the Local Authorities on the administration of the ICOB grant to ensure that support can be provided in early 2024. 

It is recognised that elements of the hospitality sector are an important part of the wider tourism ecosystem, hence the ongoing engagement of my Department and Minister Martin’s Department through the Hospitality and Tourism Forum.

Fáilte Ireland delivers varied supports to business which are set out on their website www.failteireland.ie. In particular, Fáilte Ireland continues to focus on the development and enhancement of the food experience for the wider domestic and international visitor audience.   As such, food is incorporated into Fáilte Ireland’s overall Corporate Strategy and its Regional Tourism Development Strategies.

Failte Ireland is also engaged in ongoing work involving the outdoor dining capital funding programme, the Digital That Delivers Programme, and involvement with the Nighttime Economy Taskforce.

The Local Enterprise Offices (LEOs), also play an extremely important role as part of a supportive ecosystem, providing their services direct to small businesses and promoting entrepreneurship within towns and communities across the country. They act as a ‘first stop shop’ providing expert advice and guidance, financial assistance, and offer a ‘signposting’ service for all government supports available to business owners throughout the country.

The LEOs provide a suite of productivity and competitiveness supports to small businesses in the areas of Lean, Green and Digital. These include the Trading Online Voucher, Green for Business, and the Energy Efficiency Grant. The ‘All in a Day’s Work’ national campaign emphasises the benefits of these supports for businesses; namely saving them time, energy and money.

My Department, in collaboration with the Department of Social Protection, is also assessing the cumulative impact of forthcoming changes to working conditions. The report is due to be finalised in early 2024 and will inform public policy in this area.

Earlier this week, Minister for Finance, Michael McGrath, announced significant changes to the Tax Debt Warehousing scheme with a reduction in the interest rate applying to warehoused tax debt to 0%. In addition, Revenue has confirmed that, where a business has already paid warehoused debt, which was subject to interest at 3%, it will get a refund of that interest. This will ensure that all taxpayers are treated fairly.

These changes to the scheme have been agreed in recognition of the unique nature of the warehoused debt and in light of the Government intention to support otherwise viable businesses to continue to trade while having the opportunity to reduce their warehoused liabilities in a structured and manageable way.

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