Dáil Éireann Debate, Thursday - 18 April 2024
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]
Amharc ar fhreagra117. 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]
Amharc ar fhreagra126. 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]
Amharc ar fhreagraI 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.
