Dáil Éireann Debate, Tuesday - 5 March 2024
246. Deputy Niamh Smyth asked the Minister for Enterprise, Trade and Employment to review correspondence (detail supplied) and address the concerns outlined; and if he will make a statement on the matter. [10639/24]
Amharc ar fhreagra256. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment if he will give urgent and detailed consideration to the issues outlined in correspondence from a business group (details supplied); and if he will make a statement on the matter. [10696/24]
Amharc ar fhreagraI propose to take Questions Nos. 246 and 256 together.
I appreciate the concern from businesses regarding the rising costs they are seeing at the moment and as they deal with the rising cost of doing business. It is important to note that the impact of rising prices is not unique to Ireland, but an issue facing all major economies around the world.
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. However, it is recognised that businesses may face rising costs, in particular in the short term. I am continuing to monitor this situation with a view to identifying measures which may support businesses in this transition.
The Government has provided significant support to business throughout the period of increasing costs and has been proactive in limiting the fallout from higher rates of inflation in input costs and prices.
Budget 2024 contained several measures which will support businesses facing increased costs. For example:
• The 9% VAT reduction for gas and electricity was extended for an additional 12 months, until the 31st of October 2024;
• The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were extended until the 31st of March 2024; and,
• There was an increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods.
The Increased Cost of Business Scheme (ICOB) was also announced as part of Budget 2024 and will provide a grant to benefit a significant number of small and medium businesses at a cost of €257 million. The grant will be at a rate of half an enterprise’s commercial rates bill, for 2023, for firms paying up to €10,000 in rates. A flat €5,000 grant will be available to firms who pay between €10,000 and €30,000 in rates.
The ICOB Grant will be available to up to 143,000 businesses, or 95% of all commercially trading business, operating from a rateable businesses in all corners of Ireland. The administration of the ICOB will be carried out by Local Authorities and it is intended that the grant will be provided to qualifying premises in the first quarter of this year. The grant scheme has been set up in the way so as to ensure that the scheme is accessible to smaller businesses, who may have had difficulties availing of previous schemes.
My Department, in collaboration with the Department of Social Protection, is also assessing 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. The report is due for publication shortly and will inform public policy in this area.
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 serving the SME sector and the measures included in Budget 2024 reflect this.
