Question No. 6 is in the name of Deputy Gibney.
Ceisteanna Eile - Other Questions
The Department recently published the action plan on collective bargaining. The implementation of this plan is an important and welcome step towards better collective bargaining coverage, but there is no commitment to change the voluntary system of industrial relations. That system gives employers a veto on engagement with their workers collectively. Why is this the case?
We are on Question No. 6, which relates to the new AI office.
My goodness, I am so sorry. This is not what I have prepared for. Can I swap the order? I do not have it in front of me. I will have to skip the question.
The question is to ask the Minister for Enterprise, Tourism and Employment the means by which the transition of the new AI office to a fully independent statutory body will be managed.
I can swap with Deputy Gibney if she wants to take my time.
Would it be okay to take two minutes to prepare?
If that is okay with the House.
Is that okay with the Minister? Many thanks. My apologies.
I am down the list a bit, so I can swap with Deputy Gibney and she can take my slot.
Perfect.
Business Supports
Colm Burke
Question:7. Deputy Colm Burke asked the Minister for Enterprise, Tourism and Employment if his Department and Enterprise Ireland plan to introduce a growth equity fund to help scale and co-invest in large privately owned Irish companies with a view to expansion in other jurisdictions; if his Department has researched similar programmes which are operational in other European countries, such as Denmark, Finland and Germany; and if he will make a statement on the matter. [62264/25]
Do the Department and Enterprise Ireland plan to introduce a growth equity fund to help scale and co-invest in large privately owned companies with a view to expansion in other jurisdictions? Has the Department researched similar programmes which are operational in other European countries, such as Denmark, Finland and Germany?
Ireland has a strong start-up ecosystem, but scaling remains a challenge due to limited access to long-term patent capital and finance. My Department is finalising a finance for scaling implementation strategy. This strategy will align with the commitments outlined in the programme for Government and supports the specific actions set out in the action plan on competitiveness and productivity. The purpose of the strategy is to move towards an ecosystem in which firms will have a reliable range of funding options to scale and expand. The strategy will include an SME scaling fund administered by Enterprise Ireland. The exact design features of the fund are being developed, but my Department, together with Enterprise Ireland, intends to have the fund in place as soon as possible. The work to have a fund in place in 2026 will be progressed over the coming months.
It is important to note that the SME scaling fund is only part of a suite of instruments to be delivered across two phases that will work to enhance the ecosystem and, consequently, reduce the gap in the market.
For example, policy actions to further incentivise private capital to invest more at the scaling stage will be developed in the second phase of the work which is already under way.
All of this work follows on from the report of the finance for scale-ups working group entitled the Use of Finance as a Catalyst to Develop a Scaling Ecosystem, which was published by the Department in July 2024 and which is available online. The finance for scale-ups working group examined good practices in other countries and established an international subgroup specifically to examine policy interventions in other EU member states, including Denmark, Finland, France, Spain and Sweden. It also looked at the UK and Singapore. The recommendations in the report were informed by the research of the international subgroup and included the introduction of a State-backed scaling fund.
Ireland has a significant number of indigenous companies that have successfully scaled €100 million in revenue and turnover and 250 employees, creating essential local employment and economic prosperity across the country, especially in rural areas. Despite the efforts of many, the majority of the current State supports treats such companies as too large to be SMEs and too small to be public limited companies, PLCs. While Revenue currently provides direct equity to start-ups and high-potential start-ups, HPSUs, larger Irish companies lack the opportunity for direct equity investment to support international expansion, especially through mergers and acquisitions. I have already outlined that Denmark and Germany are providing support to companies to expand outside their jurisdictions. The gap slows down the scaling growth of Irish companies outside Ireland despite the success of some notable exceptions. The lack of direct State equity backing invariably means most end up using private equity. The opportunity for Ireland to cover it is lost and foreign ownership is the ultimate outcome.
That is basically where I am coming from on this. These companies want to expand. There is an opportunity for them to expand but they cannot do so. If they get the equity, it is extremely expensive. In order to expand, they end up getting into ownership from abroad.
I thank the Deputy for the points he has raised. I assure him that the fund is being designed in conjunction with Enterprise Ireland. We hope it will be operational in 2026. We expect that there will be direct investment in start-ups first. To the Deputy's point, we need to support indigenous Irish SMEs. That will enable Enterprise Ireland, which does tremendous work in the context of co-investing alongside private leads. Enterprise Ireland has a great reputation as being the honest broker in regard to seed and venture capital schemes. We want to sequence this to ensure that SMEs have early deployment and long-term leverage, and that we can give them investment when it is required.
On the size of the equity gap, we estimate that to be in the region of €860 million to €1.3 billion. The State's role is to act as a catalyst as opposed to replacing private markets. We need to support that. The fund will be right-sized within the capital plan.
This is an important matter, because these companies create a huge amount of employment locally, especially in rural areas. It is important that we help them to expand further, particularly where they already have access to markets but are restricted because they need access to finance in order to expand. One of the companies I know has more than 800 employees, is operating outside Ireland and is bringing finance back into the country in the context of what it is doing. It is also giving employment to people who are working here but who also work abroad for certain periods.
There is a huge opportunity here. Many of these companies are not based in the major population centres like Cork city or Dublin city; they are based in rural areas. They have grown gradually over the years and have made a contribution to local economies and to the national economy. They want to continue to do that. Japan has one person employed for every person who is retired. As a result of its work abroad, Japan is able to get money in to support that system.
I agree with the Deputy. Our Department is very much about keeping Irish companies scaling and ensuring that they continue to realise their export potential and create anchor jobs within the regions and right across the country. The purpose in this regard is to protect vital jobs that are the backbone of our economy. That is why we want the strategy to operate on the basis of their needs. Enterprise Ireland already does tremendous work in this space. There is an expert advisory panel comprising industrial leaders, venture capitalists, Scale Ireland and tax specialists. The panel has met on four occasions since December 2024. We want to ensure we are shaping this, that there is a governance standard in place and that, in the context of the Deputy's point, we can support many companies that need of capital at this time in their business journeys.
Artificial Intelligence
Sinéad Gibney
Question:6. Deputy Sinéad Gibney asked the Minister for Enterprise, Tourism and Employment the means by which the transition of the new AI office to a fully independent statutory body will be managed; and if he will make a statement on the matter. [62287/25]
I thank Members for facilitating me. Will the Minister outline the means by which the transition of the new AI office to a fully independent statutory body will be managed? Will he provide some details in that regard, please?
I thank the Deputy. The establishment of the AI office of Ireland is a strategic initiative of this Government. I am delighted to have secured start-up funding of €1.4 million as part of budget 2026 for the office's establishment. The AI office will act as a central co-ordinating body for the implementation of the AI Act in Ireland and will also provide a focal point for the promotion and adoption of transparent and safe AI in Ireland to ensure that we fully capture the strategic opportunity that AI presents.
My officials, in collaboration with Departments across a range of sectors, are developing the general scheme of the regulation of artificial intelligence. This will provide the implementation and enforcement of the AI Act at national level in domestic legislation, including: the establishment of a new national AI office as an independent statutory entity which will act as the central co-ordinating authority for the Act; the empowerment of designated competent authorities with market surveillance regulation powers in accordance with the AI Act; provisions for co-operation among and the sharing of information across the national competent authorities; and the laying down of rules for penalties and other enforcement measures for non-compliance.
It is my intention to bring the general scheme to the Government over the coming weeks. There are provisions within it which will ensure that the transition from interim arrangements to a permanent statutory structure will be legally and operationally seamless. The general scheme will provide powers to decide on the date on which this will happen post the enactment of the legislation.
The distributed model agreed by the Government means that existing sectoral regulators will supervise and enforce the AI Act, supported centrally by the new AI office of Ireland. The national AI Act implementation committee, which is chaired by the Minister of State, Deputy Niamh Smyth, which has responsibility for AI and on which officials from my Department sit, was established in February. In the intervening period, the committee has brought the designated market surveillance authorities, MSAs, together to work on agreeing an approach to prepare for the new enforcement role. Since they were designated in July, additional MSAs have joined the committee.
It is helpful to hear how much effort is going into the establishment of this office. I held two leadership roles in a State agency that is arguably the most independent. The national human rights institution in any jurisdiction is informed by the Paris Principles. We have to understand how that independence is going to be guaranteed in this instance. If the body originates from within the Department of enterprise, then I have concerns that conflicts exist which may create fundamental issues on the foundation of the organisation that will carry on into its future. It would be really helpful if the Department were to look at the Paris Principles and identify how we can ensure independence.
Across the State agency sector, which is where many competent bodies sit, we have varying levels of independence, of powers of reporting and so on. All of these regulatory functions are challenged by a lack of independence and inconsistency across those bodies. AI and what it is going to do to our society are such fundamental issues that we have to get this right from the outset. Rather than focus on speed, I want to ensure that we look for quality at the foundational level.
The Deputy makes valid points on this. The Government has not made a decision yet. We are going through a lot of the issues and seeking advice on them. Hopefully, in the coming months, we will be able to go to Government with a memorandum on the final structure. Enforcement and independence are key. It is important we have public trust in artificial intelligence. Some of the areas the Deputy referenced will be looked at in detail. I also note the distributive model we have taken. For example, we have the Health Products Regulatory Authority looking after drugs and products like that, and the Irish Aviation Authority looking after aviation. That model will stand to us because it really goes to the expertise that has been built up in the State and people know the areas they have been regulating in the past.
The AI office will draw all of that together and will look at areas where we can enhance AI and areas where we can work in a safe manner. Obviously, we have our regulatory sandbox as well, which will be brought up. That will provide a key opportunity as will some of the tertiary partnerships. It is an exciting space but the Deputy is right that we do have to be careful and ensure our independence and public trust which is key in the opportunities that will be there in the future.
I am glad the Minister raised public trust because I feel there is this kind of pushback against regulation in terms of losing our competitiveness, missing opportunities and America and China racing ahead with their AI development. The issue I have is that their development will lead to products built in a regulatory environment that will not have public trust. We must look at that regulatory space and make sure that even the requirements Europe is putting forward to us meet the standards we want here. We have heard from colleagues already this morning that they feel we should be best in class. Sometimes I hear from Government spokespeople that we are best in class. I do not believe that is the case. For example, I do not believe the Data Protection Commission, DPC, has proven its worth in the past number of years. Even though it has the powers, it has not enforced them.
Similarly, if we do not get it right from the outset with the AI office - we already see online all the ways in which AI can go wrong, such as the slop which is currently generated - it will mean people will not use AI or trust it. It will fundamentally undermine our democracy and society. It is important we get it right from the outset. I encourage the Minister to look at the Paris Principles.
Absolutely. We will consider them as part of our deliberative process. The enterprise committee will be key in our approach. The private sector has done a lot of good things with AI. Insight is the largest research centre in Europe. It is based in Trinity College and shows us how we can commercialise research based in tertiary education.
We do have a lot to do from a public service point of view and in Departments. That is where a huge amount of Government work needs to be carried out. Public trust is important because general purpose technology comes with so many challenges as well as opportunities. We have to ensure we are managing those challenges and maintaining public trust. That is why it is very important - and I do not say this lightly in terms of that distributive model - we have the expertise built in in those key areas that have public trust. Many of them, in terms of the areas they manage, have a very strong track record. I am happy to work with the Deputy on the areas she referenced. This is a collective approach. There are huge opportunities but there are risks and we should be open to that risk and manage it appropriately to ensure we are building public trust as well.
Question No. 8 taken with Written Answers.
Tourism Promotion
Cathy Bennett
Question:9. Deputy Cathy Bennett asked the Minister for Enterprise, Tourism and Employment if he will report on his proposals to cultivate cross-Border tourism. [62277/25]
Will the Minister outline to the House his work on the promotion of cross-Border tourism?
I thank the Deputy for this important question. Enhancing cross-Border co-operation and connections is a key ambition of this Government and tourism is an important asset we have to realise together.
Tourism Ireland is responsible for marketing the island of Ireland overseas as a leading holiday destination and works closely with colleagues in Fáilte Ireland and Tourism Northern Ireland. In addition to a commitment to work with Fáilte Ireland to develop a balanced regional spread of tourism throughout the country, further advancing the experience brands, the programme for Government also includes a commitment to support Tourism Ireland to further integrate tourism offerings on an all-island basis.
The Government is also committed to completing construction of the Narrow Water Bridge and to supporting the local authorities on both sides of the bridge in developing the new tourism opportunities it will bring and to collaborating with partners North and South of the Border.
At the North South Ministerial Council tourism sectoral in June 2024, Ministers signed a joint ministerial statement supporting sustainable tourism and agreed to the establishment of a joint strategic co-ordination group for the sustainable growth of the tourism sector across both jurisdictions.
The all-island strategic tourism group, which is co-chaired by officials in my Department and the Northern Ireland Department for the Economy, with representatives from the three tourism agencies, provides a strategic approach, aligned to policy priorities, to the development and implementation of all-island initiatives. The aim of the group is aligned with the measure in the programme for Government to support Tourism Ireland to further integrate tourism offerings on an all-island basis.
Tourism is also a central pillar of the shared island initiative. The brand collaboration project to connect the Wild Atlantic Way and the Causeway Coastal Route in the north-west region has made significant progress this year with the roll-out of the small grants scheme for destinations on both sides of the Border.
In May, Tourism Ireland launched a new campaign called Coast to Coast: The Scenic Route, which was supported by the shared island tourism brand collaboration project. The campaign reached almost 15 million people across Britain.
I thank the Minister and welcome his response. As Ireland's largest indigenous industry, tourism is a crucial sector and our largest regional employer. It is right that Ireland is marketed by Tourism Ireland on an all-Ireland basis and I welcome efforts to link the Wild Atlantic Way and the Causeway Coastal Route. In effect, this is nearly a circuit of the island of Ireland for tourism trails. Will the Minister speak to any plans to complete the circuit and to link and extend Ireland's Ancient East into the North but also in terms of Ulster being a destination? Will he also speak to his work to encourage cross-Border tourism in terms of Donegal, Derry, Monaghan, Tyrone, Armagh and Cavan?
We are working closely with our partners in Northern Ireland to expand our brands, particularly Ireland's Hidden Heartlands. There is ground for expansion there. I met with Minister Archibald in London last week. We were doing an expo together. It is great to see everyone together trying to push Ireland as a destination. We have discussed a number of areas which we will be supporting through the shared island initiative but also through Tourism Ireland, the all-island body.
There is a huge amount of opportunity. We currently have approximately 46,000 SMEs in the tourism sector. One in every ten jobs is supported in that sector. It is key that we grow its value proposition. I also want to reflect that tourism is now at the heart of the Department of enterprise. There are so many SMEs right around our country that depend on that authentic offering that is really valued all over the world. We will be doing a huge amount to develop business models on our SME side to support the opportunity that there is in the market. I believe we have very bright days ahead. We will hopefully launch our new tourism policy in early December. It will be a big opportunity to show the vision we have as a Government to enhance the product and brand as well as to grow revenues and jobs sustainably. It is also critical that we develop career pathways that are important for people working in the sector.
I look forward to seeing that tourism policy. I hope the Minister incorporates a rail network that runs through Monaghan, Cavan and Donegal. If you look at the top of Ireland on the map, we have no rail network up there. I know it is not the Minister's Department but I hope he is working with the Department of Transport to ensure that happens. It is not on at this stage.
The maximum potential across the avenue of tourism will require an accurate understanding of how the tourism sector is performing. For some time now there seems to be some confusion on that point. The Central Statistics Office, CSO, has been recording a decline in visitors this year, which some stakeholders have refuted. Any confusion should now be put to rest given the latest tourism barometer from Fáilte Ireland. It shows that 43% of all tourism businesses reported a fall in income this summer. The situation seems to be worst outside the coastal tourism trails. Will the Minister outline his response to this and his efforts to support the industry and promote jobs in the sector? Will he also speak on the rail network and whether he has discussed it with the Minister for Transport?
Last year was a bumper year for tourism and it is a big challenge to replicate that. However, we have to look at the evidence and the facts. Some 12% fewer seats came into our country because of the airport cap. That was a very significant challenge for the tourism sector. That will not be the case for the winter ahead. I think there will be approximately 9% more seats in the winter ahead, which will provide capacity for well over 1 million people to come into our country. This will provide a huge amount of additional opportunity.
The plan that we will hopefully launch in early December will show how we are going to grow revenue sustainably and grow the number of visitors coming in, which is critically important. We will also outline career pathways as well as looking at extending the season from St. Brigid's Day right out to Halloween. There is a huge amount of opportunity in those areas.
We will have a very exciting culinary strategy looking at food and beverages. I am going to do that on an all-island basis, which is important, working in co-operation with our colleagues in Northern Ireland. That is a huge opportunity, particularly for markets, like in Europe, which are under pressure in terms of how they view the authentic offering from artisan food producers and distilleries right around the country. We have a lot of opportunity there. I will raise the other issue of rail with the Minister, Deputy O'Brien.
Small and Medium Enterprises
Barry Ward
Question:10. Deputy Barry Ward asked the Minister for Enterprise, Tourism and Employment the position regarding supports for any SME that will not benefit from the planned VAT reduction in July 2026; if targeted supports for small businesses that are facing increasing costs will be considered; and if he will make a statement on the matter. [59971/25]
I welcome the VAT 9 proposal which will come into effect in July of next year. However, I am wondering, particularly in the case of small and medium enterprises that will not benefit from the scheme, if there could be targeted supports for them in respect of increased costs of doing business.
I thank Deputy Ward for this very important question. The Government recognises that the cost of doing business has been an issue for firms in recent years arising from both the wider inflationary trends and Government-mandated changes in the form of improvements to working conditions across a range of areas. It is important to note that costs for firms, as measured through the CSO's wholesale price index, are declining and are down 2.6% in the 12 months to September 2025.
Most recently the Government has taken action to address business costs through the publication of the action plan on competitiveness and productivity and the convening of the cost of business advisory forum, which are both commitments in the programme for Government. The focus of the action plan is on actions that can be taken to strengthen Ireland’s competitiveness and productivity which, in turn, will lead to improvements in our economic performance. A core theme of the plan is regulating for growth and controlling costs, with 18 actions, including five priority actions, focused on addressing this issue. Key action areas include better regulation, which will decrease the regulatory burden for business, addressing Ireland’s high legal costs, and improving competition in our markets. The establishment of the cost of business advisory forum delivers on the commitment regarding supports for small business, enterprise and industries. The first meeting of the forum took place on 11 June with representatives in attendance from across Ireland’s enterprise sector, including SMEs, joined by officials from a variety of State agencies, regulators, and Government Departments. The forum is a tripartite collaboration bringing together a broad selection of representative bodies spanning multiple sectors as well as multinational corporations. The purpose is to jointly consider those issues that can lead to higher costs for businesses in Ireland, any associated regulatory or infrastructural issues that merit a changed approach and those steps that could be taken to mitigate these issues. The forum is scheduled to report to Government in the first quarter of 2026.
Budget 2026 has provided an overall package of €9.4 billion, with €8.1 billion provided for public spending and €1.3 billion for new taxation measures. The latter measures will benefit SMEs.
I acknowledge what the Minister has done in relation to small businesses and business supports. I also recognise that there has been a reduction in the cost of doing business, which is well and good. I support the VAT 9 scheme because it is important to provide that leg-up, particularly for small businesses who need it. The reality is, however, that it is a blunt instrument. It is a universal benefit and, therefore, it benefits those enormous companies and even those large companies that do not need the support. I recognise that it is difficult to construct a mechanism that allows us to give the benefit to one group of companies and not to others but the reality is that large companies do not need that VAT reduction. They will survive. They welcome it but they will survive without it. There are small businesses in every town and village in this country, including businesses in my own community and constituency which have been in contact with me, that need that reduction but they will not get it for whatever reason. They are outside the scheme because they are not providing certain goods. Small businesses are not all getting that benefit but are still facing increased costs of doing business. I am wondering if there could be targeted supports specifically for those small businesses.
First, I would robustly challenge the premise that big businesses in the economy are not good. They employ people. Many franchises provide huge employment in many rural parts of our economy. Let us focus on what we are doing as a Government in the sector the Deputy referenced. First, we increased the PRSI threshold for those on the living wage. We brought forward moderations to the living wage and additional sick pay. We introduced an energy efficiency grant under which businesses get a 75% rebate. We have also extended the 9% VAT rate for gas and electricity to support those businesses the Deputy referenced. We have doubled the innovation voucher to €10,000, again supporting small businesses. We have increased the microfinance liquidity loan threshold to €50,000 for small businesses which will be very important for them. We are also working on an additional loan scheme to provide low-cost finance right into the heart of our SMEs. We have brought forward a change to our research and development regime which benefits small businesses. We also have our SME test which is very much about thinking small first in the context of how changes to statutory instruments and primary legislation affect the smallest businesses in our economy. Those are the areas we want to continue working on as well as on a heap of digitalisation grants supporting businesses to grow more revenue. The Government is very much focused on all of our SMEs and the reflection of that is the growth in our job numbers in our economy.
I acknowledge all of that and in no way want to suggest the Minister is not focusing on SMEs. I acknowledge all of the work that is being done. I know SMEs are the backbone of the economy. The quibble I have in relation to the VAT 9 reduction is that it is across the board. That does not mean that big businesses are not valuable - of course, they are - but they do not need the reduction in the way that small businesses do. We have had this conversation previously and I would much rather see a targeted relief for small businesses. Whether one picks a metric of turnover, profit, number of employees or something else, there is a metric that can be picked to do this. Let us take McDonald's as an example. McDonald's is a franchise and is owned by business people all over the country who run good businesses. They will survive without the reduction to 9%. Next door to them there might be a small café that might not survive without it. The point I am making relates to the cost of this measure. As I have said, I support the measure but in terms of its cost, we would be much better off spending the bulk of that money on the SME sector than on those parts of the hospitality sector that do not need it, the large and very large companies that still provide huge value in the economy but that do not have the same reliance on the scheme.
I note the Deputy's concerns but I have not seen any workable framework under the European VAT directive that allows for differentiation on turnover. I have not seen it yet. I have not seen any workable proposal in relation to that. My point is very clear. There are 228,000 jobs supported in our hospitality sector. Many of them are in regional parts of our country and the vast majority of them, well over 90%, are small businesses. That is why as a Government we have taken a view that we are supporting them very robustly.
We are going to have a new tourism plan next month. That is going to look at numerous issues. The Government is giving the sector a big incentive in taxation now. What is the sector going to do for us as a country to grow as a sector, to create jobs and to grow the value proposition and ensure we can absorb the opportunities presented by tourism? We will be working very closely with the sector. As I said, we will have a new culinary strategy. We are growing the season, growing capacity and ensuring that we develop businesses in this country. This is the key issue. We have a unique opportunity now to really develop the model that businesses operate in, to make them more sustainable and ensure they are in a position to take advantage of the huge opportunity. We are in a very exciting time, particularly for tourism and hospitality. We have a lot of work to do in making businesses viable and this is a viability measure to ensure jobs can be retained. So many workers going up through the system get their first job in hospitality. They learn what it is like to be in society, to work and contribute as they go through. It is very important that we stand by all of those areas.
Regional Development
Colm Burke
Question:11. Deputy Colm Burke asked the Minister for Enterprise, Tourism and Employment if his Department and Enterprise Ireland are reviewing current policies with a view to expanding opportunities in areas outside of the Dublin region; and if he will make a statement on the matter. [62265/25]
I thank Deputy Burke for his very important question. Balanced regional development is a Government priority and a central component of the White Paper on Enterprise 2022-2030 is to support balanced regional enterprise development. My Department and its agencies work to support this agenda in several ways, including through the work of Enterprise Ireland, IDA Ireland, local enterprise offices, LEOs and nine regional enterprise plans.
Enterprise Ireland supports over 4,000 Irish companies across every region in our country and during 2024, these businesses created more than 15,000 new jobs bringing employment at Enterprise Ireland-supported companies to 234,454, with 66% of those jobs outside Dublin. Enterprise Ireland’s new strategy, Delivering for Ireland, Leading Globally, published earlier this year, sets out a comprehensive roadmap to support Irish businesses to grow and thrive at home and abroad. This will help to drive economic growth and regional development right around the country.
In addition, Enterprise Ireland supports businesses directly through its regional offices and in collaboration with the 31 LEOs around the country. As the first-stop shop for any Irish business seeking development support, the LEOs play a key role in supporting the growth and development of businesses across every town and community in the country. Published last year, the LEO policy statement outlines how the LEOs work to foster a strong entrepreneurial culture and promote enterprise nationally, through a mix of programmes, supports and campaigns.
Foreign direct investment has a significant impact in realising balanced regional growth and IDA Ireland has continued its strong commitment to regional development as one of four key strategic objectives of its 2025 to 2029 strategy, Adapt Intelligently.
Published in February this year, this ambitious strategy aims to secure 550 FDI projects outside Dublin, amounting to 55% of all planned investments. The overarching goal is to create 75,000 new jobs nationwide and generate a projected €250 billion in economic impact. IDA Ireland has also set an ambitious target for regional Ireland. To support regional opportunities, IDA Ireland also offers eight regional locations, providing local support to clients, working closely with local stakeholders, including councils, to attract new and maintain existing investment.
Where I am coming from is that in the Cork area, the land bank IDA Ireland has in Ringaskiddy is now totally built on and there is very little space available for new companies to come in. Likewise, many of the private business parks have been developed, such as Blarney Business Park, which has seen huge growth in the past five to eight years and is running out of space. My question is about the Cork region and the identification of a land bank that could be made available for new companies to start up on or for companies coming from abroad to start up on. It is extremely important. We have had huge growth in the pharmaceutical and medical devices sectors, and in a lot of other sectors, in Cork. That is because we have the support of the third level colleges, which are producing the graduates to work in those companies. The question now is about a land bank that is needed outside Dublin for companies and we need to deal with it fast.
I thank Deputy Burke for all his work in this area. I was with him recently in Cork. We had a great meeting looking at all the opportunities there and met many people from the community.
I will say three quick things. First, the Department is working on a scheme for small manufacturing sites for businesses. There is huge demand, particularly for manufacturing and engineering businesses, for small units. Second, Cork will be key in looking at our next-generation site. We will have a next-generation site in the south of Ireland and Cork would be a fantastic location. It will be over 1,000 acres. That will be where the next-generation Intel, semiconductor company or life science company is. It will be important for Cork. Third, working with IDA Ireland, we are happy to work on the options. A lot of negotiations are going on about acquisition of land in that area and we will be happy to work with the Deputy and his office to try to ensure there is space for opportunity. Lead times are critical and if we can have large sites for bigger corporations, the lead times will be shorter. The sites should be utility rich so the companies can get working quickly. That will be important. Cork will be earmarked for one of those in the south.
There is continued expansion. I visited one company recently that was doing a €60 million expansion and a number of other companies have plans to grow. The challenge is that some of them need to move to bigger sites. I welcome what the Minister said about a land bank because it is extremely important and also because of the port facility. The Ringaskiddy bypass road is now being built. It will take another two years. With the development in the Tivoli Docks area, the port facilities will move to Ringaskiddy and while land will be opening up there, it will be for residential development and other potential development. There are a lot of opportunities in Cork now. It is interesting how, by the local authorities - the city and county councils - IDA Ireland, Enterprise Ireland, the Minister's Department and other Departments working together, we can make sure land is available and the infrastructure is developed so that companies can come in, create employment and grow the local economy further.
I am happy to work with the Deputy on all those areas. He has been a firm advocate for business competitiveness, which is key. In the new infrastructure proposals the Government will be bringing forward in February, it will be key to look at our ports and such authorities to ensure we are quickly able to get the key infrastructure enhancements into those areas. On the national planning framework for businesses expanding, it is key to ensuring they can do so, because there have been impediments to that in the past. Some exciting companies are expanding in the Cork area. I saw it first hand in Mallow with the Deputy recently. We met many good business owners and the chambers of commerce. We have subsequently done our best to resolve the issues they have. I spoke to the chief executive of Cork County Council subsequent to Deputy Burke's meeting. It is important we progress things in some areas where there have been blockages. We need to ensure we value employment and the risk takers. The businesses that are coming forward are key and the Deputy is a firm supporter of them in Cork.
Business Supports
Tony McCormack
Question:12. Deputy Tony McCormack asked the Minister for Enterprise, Tourism and Employment the measures being taken by his Department to support the retail sector; the initiatives in place to assist small and independent retailers facing cost pressures; and if he will make a statement on the matter. [61547/25]
What additional supports is the Department considering to help small and medium enterprises to manage current cost pressures and restore business confidence and will he make a statement on the matter?
I thank the Deputy for his question. The Government acknowledges that the retail sector contributes to the economy of every city, town and village in Ireland. The sector provides highly important employment with over 220,000 people directly employed in retail. The programme for Government is clear on the intention to support small businesses and as the Minister of State with responsibility for retail, I am aware of the issues facing retailers.
The broad range of supports for the retail sector, including training programmes and funding to help retailers adapt to new challenges and opportunities in retail, can be found on the national enterprise hub, NEH. The NEH is an all-of-government service staffed by expertly trained advisers and is focused on helping businesses to access a range of Government supports. The hub brings together information and resources of over 250 Government supports from 32 different Departments and State agencies. The grow digital voucher offers up to €5,000 to small businesses, including retailers, to invest in technology such as e-commerce software, online booking systems and stock control, which are designed to enhance productivity and competitiveness.
The energy efficiency grant provides up to a maximum of €10,000, with a 75% contribution rate from the Government to support investment in technologies and equipment identified in a green for business, GreenStart or Sustainable Energy Authority of Ireland, SEAI, energy audit. The aim of the scheme is to reduce the impact of enterprises on the environment, thereby increasing the agility and resilience of these businesses.
In 2024, the Government introduced the power-up grant and the increased cost of business, ICOB, scheme, which paid out over €400 million to businesses. Included in this was a second ICOB payment and a €4,000 power-up grant for businesses in the retail sector. The Department opened a reclassification appeals process this July, which allowed businesses in the retail sector that had initially misclassified their business category an opportunity to reclassify.
The cost of business advisory forum has been established, comprising SME and industry representative organisations, and the forum held its inaugural meeting in July. A report is due to the Government in the first quarter of next year, which will outline the forum's findings and highlight the steps that can be taken to mitigate rising costs.
While Ireland's balance sheet looks good on paper and the country is doing well at the moment, some small- and medium-sized businesses, including in retail, are anxious. They are doing their best to keep their doors open, but margins are tight. All the schemes the Minister of State mentioned need a bit of investment from the businesses, which is just not there at the moment. Many tell me that they are not looking for handouts, but a bit of help to steady the ship, practical supports and clearer direction. Schemes like the power-up grant the Minister of State mentioned earlier made a real difference in the past. Will he outline what fresh supports or initiatives are being considered to help small businesses invest, grow and feel confident about the year ahead, particularly in rural counties such as Offaly where SMEs are the backbone of the local communities?
Retail is evolving rapidly. We have seen significant changes in consumer habits. Shoppers now expect an online channel or experience, not just the physical presence on our high streets, as the Deputy experiences in Offaly, but also for them to offer multiple touchpoints, such as the implementation of websites, the digitalisation journey, mobile applications and in-store options. The Government is supporting businesses in that. There is a grow digital voucher of up to €5,000 for e-commerce platforms. We are also supporting business with consultancy advisers in digital transformation and local enterprise offices, LEOs. The Offaly office provides mentoring training and grants for lean, green and digital initiatives. We need to continue to support the retail sector, because we know how important it is. We are working with other Departments and with the Minister of State, Deputy Cummins, on planning statements around a retail strategy. That will ensure we have a balanced retail presence of physical stores and digitally integrated ones.
That is encouraging but it is not what I am hearing on the ground. The feedback that I am getting from business owners is that they often do not know where to start. The Minister of State mentioned the local enterprise offices, which do great work in County Offaly and other counties around the country. We need to make sure that people know about these places. Whether they are applying for funding, going digital or managing rising costs, this needs to be made clearer to them. Would the Minister of State consider developing a more hands-on, locally focused SME guidance programme where trained mentors or advisers could visit businesses directly, offer tailored advice and connect them quickly to the right grants or supports? That kind of practical, person-to-person guidance could make a real difference in helping SMEs to build confidence and plan ahead.
We are undertaking a review of the local enterprise offices to streamline them, reduce the administrative burden and make it easier for SMEs and businesses to access supports. We are conscious that we need to strengthen the role of the local enterprise offices because they have the local knowledge and are the touchpoint for many of these businesses in towns and villages across the country. They need that expert advice and mentoring to ensure that their businesses remain resilient and sustainable into the future. Through the work that we are doing in the cost of business advisory forum and the immediate financial relief that we are providing through the green transition and energy efficiency improvements, we want to support that because we know how important the retail sector is. As I said earlier, there are 220,000 jobs nationwide and we want to continue to support the Deputy's constituents in Offaly through sustainability and the competitiveness agenda, but also see how we can make it easier for businesses to access supports.
Foreign Direct Investment
William Aird
Question:13. Deputy William Aird asked the Minister for Enterprise, Tourism and Employment his Department’s timeline for identification and servicing of the large-scale regional next generation sites for future FDI and enterprise; in which counties these will be located; the means by which local enterprise offices and regional agencies will be involved; and if he will make a statement on the matter. [62203/25]
I welcome the opportunity to raise this important question with the Minister. Ireland's success in attracting world-class investment has depended on our ability to offer fully serviced, high-quality industrial and enterprise sites. As we look to the next generation of investment in manufacturing, green energy and digital innovation, we must ensure that every part of the country, including the midlands and County Laois in particular, is ready to compete. My question to the Minister is what the Department's timeline for identifying and servicing large-scale regional next generation sites for foreign direct investment and enterprise is, where they will be located and how local enterprise offices, regional agencies and local authorities will be involved in their development.
Developing next generation sites is essential for Ireland to remain competitive if we wish to attract further large-scale, high-value manufacturing opportunities such as major semiconductor and biopharma investments. The next generation site approach will be plan-led, streamlining development and reducing planning risks, and provide pre-permitted, utility-intensive sites, enabling swift development and certainty for investors. Each site will be developed in stages over a number of years to facilitate incremental investment in the necessary infrastructure. Funding for land acquisition for the first two sites, planned for the west and east of the country, is coming from my Department's capital allocation under the revised national development plan. A third site is planned for the south in future years.
Each next generation site development will be undertaken in consultation with local authorities with sites of either 1,000 acres or 500 to 600 acres for tier 2 proposals, in line with the programme for Government and our semiconductor strategy commitment. The IDA will engage with relevant local authorities throughout the process. The sectors targeted by next generation sites will provide quality, skilled employment that pays high salaries, thereby contributing to our corporation tax, PAYE and PRSI receipts. Additionally, further returns on investment will come from site rental or sale.
At a local level, Irish-owned enterprises will benefit from site development opportunities as well as ongoing subsupply to and spin-outs from the large-scale FDI envisaged, as has been confirmed in many studies of past FDI gains, including through the recent mapping of semiconductor sites in our next-generation strategy. Next generation sites will demonstrate that Ireland is a suitable location for establishing new large-scale operations as well as for winning future large-scale foreign direct investment. We are clear that we will not continue investments on yesterday's terms. We need more ambition and to get that next wave of investment. The next generation initiative will sit alongside the IDA's regional property programme, which, during the 2025 to 2029 lifetime of its current strategy, will deliver 23 projects across 21 locations in eight regions, primarily focusing on manufacturing buildings. The IDA will also plan to continue to invest in its existing property portfolio, including land banks, business parks and industrial parks.
I thank the Minister for his response. The next generation sites initiative represents a real opportunity to prepare Ireland for the industries of tomorrow. In Laois, we have the location, the infrastructure and a workforce ready to go. What we need now is clear prioritisation and early investment so that we are fully prepared to deliver for the new enterprises of the FDI projects that come on stream. Laois, as the Minister knows, is strategically positioned, with the M7 and M8 motorways, strong rail connectivity and proximity to Dublin and the south-east ports. Laois offers a skilled workforce in manufacturing logistics and technology, and growing potential in green energy. I know the Minister is committed to balanced regional development, sustainable jobs and giving every county, including Laois, a fair chance to attract the next generation of investment. I am asking his Department to continue to engage with Laois County Council, the local enterprise offices, Enterprise Ireland and IDA Ireland to ensure that Laois and the midlands are represented in the first wave of large-scale, next generation sites.
I am happy to work with Deputy Aird in Laois to ensure that Laois continues to grow. We have our advanced planning permit, which we are now working with IDA Ireland and Laois County Council on for our advanced building solution. It is important that we can reduce lead times and give certainty in that regard. We had a great day at Midland Steel, where we have 70 jobs. It is a good example of where Laois is at the cutting edge of innovation in areas that are critical to the supply chain of our economy. There will be significantly more opportunities. About 145 people are employed by IDA companies in Laois, which I know Deputy Aird is a strong supporter of. I am happy to work with the Deputy in the future to ensure that we grow our footprint of foreign direct investment. I am clear that Laois needs to get more. It is absolutely an area that needs to be enhanced and have further growth of employment opportunities. We need to put in the infrastructure, reduce the timelines and reduce uncertainty, as we are planning to do with our advanced permit. I look forward to working with the Deputy in those areas.
We have the lowest rate of job creation from IDA Ireland in the State at the moment.
I wanted to talk to the Minister about Leprino. I thank him for visiting Leprino in Portlaoise and working with me and the other people. The announcement that Leprino Foods will close its facility in Portlaoise is a huge blow to us in Portlaoise, to County Laois more widely and to the 130 skilled workers who are working in Leprino, their families and the wider local community. We need urgent and co-ordinated action on this. Will the Minister confirm whether a dedicated task force will be established to bring together the Minister's Department, Laois County Council, IDA Ireland, Enterprise Ireland and all relevant stakeholders to safeguard the jobs, support affected workers and attract new investment to this site, which as the Minister knows, is a state-of-the-art site? It is a site where huge investment was put in for all new builds and equipment. This site would be available for many different workforce skills and opportunities. It is just to ensure that the building continues in operation.
I thank Deputy Aird for raising Leprino Foods and the 132 jobs there, which are valued. I know it is working under a timeline at the moment. We are working so hard with Enterprise Ireland and the IDA, looking at a prospectus for a site, because it is a highly valued building. It is highly regulated and utility-rich. It provides a significant offering for a company. We are working really hard to get another buyer and a company into it because it provides a unique location. It has the infrastructure, the connectivity and the talent, and I know it is important to those 132 families who rely on those jobs in Leprino that we get a future for the site. I know Deputy Aird is very much engaged in it. I met the management there. I went through all the options regarding how we got to this stage. I know it can be frustrating to lose high-value jobs like that but we will work so hard to get them replaced. We will work closely with the Deputy. I met and briefed him after our meeting and he has been centrally involved in trying to ensure that we get more services and high-valued jobs and, critically, look out for the futures of those 132 families who are really dependent on the Government getting a response here.
Small and Medium Enterprises
Edward Timmins
Question:14. Deputy Edward Timmins asked the Minister for Enterprise, Tourism and Employment the supports in place for small companies and businesses to enhance their understanding of profit and loss and cash flow; and if he will make a statement on the matter. [62194/25]
Like the Minister, I have worked in and for small businesses in this country. The highest number of employed people in the country is in small businesses. Many of these businesses are an intrinsic part of their communities. They are also a crucial part of the economy and the social fabric of this State. What supports are in place for small companies and businesses to enhance their understanding of profit and loss and cash flow?
I thank the Deputy for his question. It comes from an accountant and, with the Minister being an accountant, I feel less qualified to answer it but I will do my best.
The local enterprise offices, LEOs, are located in 31 local authorities to promote a suite of supports designed to assist small businesses to reduce their costs and become more productive and competitive. The LEOs provide consultancy and grants to small businesses across all sectors in the areas of lean, green and digital. These supports focus on enhancing productivity while improving competitiveness, and they can help business owners identify opportunities to save money, time and energy. The LEOs also play a crucial role in supporting small businesses to build financial capability, including a practical understanding of profit, loss and cash flow management.
Training programmes are scheduled based on local demand and delivered on a tailored basis to meet the specific needs of small businesses. LEOs are consistently encouraged to prioritise financial literacy when designing their training calendars. This year, the LEOs delivered a wide range of targeted courses to enhance the financial understanding of SMEs. Each course is designed to equip small businesses with practical skills in financial planning, cash flow forecasting and understanding profitability. Among the courses delivered were financial foundations for small businesses, managing cash flow in business, managing your cash flow, fundamentals in business finance and bookkeeping and accountancy for small businesses.
The LEOs also offer a start your own business training programme aimed at those who have a business idea or have recently set up a small business. This programme includes a dedicated finance module to ensure new entrepreneurs gain essential financial knowledge.
I thank the Minister of State. That covers a lot of what I was looking for. These businesses include retail, restaurants, pubs, small family businesses and the self-employed. In my experience, many of them have a poor understanding of profit and loss. They do not understand the basics of gross profit and fixed overheads. If they understood them, they would know their break-even sales figure. This is fundamental to understanding viability. If they understand this, they can know using a weekly turnover figure how well they are doing. This means they can take corrective action before it is too late. Unfortunately, many only know they are not doing well when they see they cannot pay their VAT bill or their suppliers. Even then, they do not understand what the problem is.
I absolutely agree with the points the Deputy raises. Financial literacy is a cornerstone of competitiveness and that is why we have the LEOs ensuring small businesses have the tools to manage their finances effectively. They are on hand to assist at county level, including financial mentoring, training workshops and management development programmes. It is important that owners who want to advance their financial planning skills are supported, that any perceived challenges around financial management are demystified and that business owners make informed decisions and avoid common pitfalls. For start-ups, we have the start your own business programme. That has a specific finance module wherein the LEOs provide specialist mentoring to entrepreneurs and owners on strategies around pricing, cash flow and profit and loss.
In relation to taxes, we have a similar problem. Many businesses think the VAT they receive is part of their business cash, not fully understanding it is cash they collect on behalf of the State. I came across a business selling coffee. They thought the €4 they charge for the coffee was their income and the VAT was a cost. Similarly with PAYE, USC and PRSI, they sometimes use these taxes as cash flow for the business. Can the LEOs provide a basic tool to help small and not-so-small businesses navigate this apparently simple issue, which has driven many potentially successful businesses to the wall? Can such workshops be a regular offering by the LEOs? Can Revenue do the same? Can they inform small businesses of these supports?
I appreciate the concerns the Deputy has raised. For any business owners, it is incumbent on the Government and the LEOs to ensure they are sustainable, have resilience built into their business plan and have access to the mentoring, training and advice that are essential to keeping businesses afloat. Raising the importance of financial literacy and ensuring businesses have access to training workshops is part of the local enterprise offering. They have peer-to-peer learning and engagement with key advisers within each local authority. We want to continue to support this through tailor-made programmes. The start your own business programme has an important financial module. Enterprise Ireland also invests in early-stage leadership development to ensure companies on that journey are supported.