Saincheisteanna Tráthúla - Topical Issue Debate – Dáil Éireann (34th Dáil) – Wednesday, 15 Jul 2026

Saincheisteanna Tráthúla - Topical Issue Debate

Bus Services

Deputy Thomas Gould

The bus service in Cork has been in crisis for a number of years. Buses do not turn up. Buses are late. There are ghost buses. There are buses that have "out of service" displayed on them as they drive past dozens of people waiting at bus stops for them. There is an app that does not work. People are looking at the app which says there is a bus due shortly and after a while the bus disappears from the app.

It is unbelievable that the crisis in the bus service in Cork is this bad and has been this bad for so long. I have been contacted by drivers who tell me the condition of the buses in Cork is so bad. There are numerous issues and there is a shortage of buses in Cork. One of the reasons there is a shortage of buses in Cork is that there was supposed to be a temporary depot in Tivoli. That is a year late. It is going to cost €18 million for a temporary depot and Cork will not get any buses until that is up and running. I have looked for commitments for the last two years to get that open and here we are looking at delay after delay.

This means there is gridlock in Cork at the moment. There is absolute gridlock in the city centre with people trying to get from one side of the city to the other. At Monday night's council meeting there was a discussion about a new traffic system in Cork to encourage people to walk, cycle and use the buses. How can people use the buses when we are short buses and they are not turning up? With this new system, because the bus service that was supposed to be in place is not in place, the gridlock is now worse.

It is unbelievable in this day and age that a city like Cork has been reduced to this because of a shortage of buses. In the middle of the crisis last week there was a big announcement to introduce 90-minute fares for Cork city. You might say to yourself that this is a bit of positive news. However, hidden inside that announcement was another announcement saying fares for adults would increase by 26%. Fares are to increase by up to 26%. For an adult in Cork who commutes, that is the equivalent of an extra €240 a year. The Government gave Cork 90-minute fares and at the same time gave us a 26% increase. How in the name of God with the cost-of-living crisis we have at the moment is that acceptable? I do not think it is. It happened in Dublin. I think most of them had no increase and some of the services had an extra five cent or a very small number.

This 26% increase has to be changed. The 90-minute fares have to stand but they have to stand at the original price. The thing about Cork is that most people do not use multiple trips. If someone pays a fare in the morning, they are going one way. They are going to work, school, college or the hospital. For the vast majority of passengers, the 90-minute fare is actually no saving but, rather, an extra cost.

The question I ask myself is whether these fare increases are to subsidise the poor decision-making of the NTA and the Government and to supplement Bus Éireann for the extra costs? I want to make it clear that this is not the drivers' fault. In fact, I do not believe it is Bus Éireann's fault, and it is not the passengers' fault. This is a result of Fianna Fáil and Fine Gael's decision to privatise the bus services and it is wrong. Bus services need to be public services.

Minister of State at the Department of Enterprise, Tourism and Employment (Deputy Niamh Smyth)

I thank Deputy Gould for his passionate presentation this morning about bus services in Cork. I am really disappointed to hear the technology is failing passengers and bus drivers, with apps not working. We are in a day of digitalisation and digital transformation and I am in disbelief about that. I will certainly see if there is anything from my end that we can do on that. The Deputy raised the condition of the buses along with a shortage of buses. That is very disappointing to hear too and is something I will raise with the Minister.

The Minister for Transport has responsibility for policy and overall funding in relation to public transport. However, he is not involved in the day-to-day operations of public transport, which cover a lot of the issues Deputy Gould has raised about digital transformation, conditions of buses and shortages of buses. I want to make that distinction.

The National Transport Authority, NTA, has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of these services in conjunction with the relevant transport operators. It is clear this is an NTA responsibility. The NTA also has responsibility for the regulation of fares charged to passengers, which the Deputy alluded to, in respect of public transport services provided under public service obligation contracts, including Cork bus services.

As Deputy Gould is aware, the NTA recently announced that from Monday 20 July passengers using Bus Éireann’s Cork TFI city bus services will benefit from faster boarding times and a simplified 90-minute fare.

This means that, for the first time, passengers would be able to catch any bus in the city and transfer between buses in Cork city as often as they need within 90 minutes. To support the introduction of TFI 90, adult Leap card fares in Cork city will move to a single flat fare of €1.70. This replaces the current adult Leap fares of €1.35 to €1.55, creating a simpler fare structure while enabling unlimited transfers within 90 minutes. It means passengers can move between buses without being penalised for doing so. The main ethos of this is to keep fares reduced and as low as possible.

The introduction of new onboard ticket validators also means that passengers can simply tap their Leap card and go, reducing boarding times and keeping services moving. This improves the overall reliability and punctuality of Cork city bus services. That said, it is disappointing to hear the Deputy’s presentation this morning, which speaks against all of the information the NTA is giving the Minister. As a result, passengers should enjoy greater flexibility, and they will also benefit from fare capping, which has not been previously available to passengers in Cork. This initiative is future-proofing the multimodular public transport offerings planned for the city of Cork over the next few years.

The Tivoli temporary bus depot, to which the Deputy referred, is being delivered by Bus Éireann using funding administered by the NTA. The Tivoli bus depot is a critical enabler of the BusConnects Cork programme as it allows for the expansion of the urban bus fleet servicing the Cork metropolitan area in the short term. The Minister has been advised that substantial completion of the Tivoli temporary depot has been achieved and that fit-out works are ongoing and due to be completed shortly. This will facilitate the additional bus fleet needed for Cork, including Cork city. Regarding the upgrading of fleet, the electric bus charging infrastructure framework has been completed, and contract signing is expected shortly. Once finalised, the framework will support the delivery of charging infrastructure at Capwell depot.

Deputy Thomas Gould

The Minister of State referred to the new 90-minute fares and the fact that people can tap on and tap off. I want to let her know that the fare is €1.90 but next week, it will be €2.40. That is a 26% increase in the fare. How can that be justified? The people of Cork are being forced to pay 26% extra for a service they cannot even depend on, a service that might not turn up or might be delayed. People are depending on the bus service in Cork but it is not reliable. Can the Minister of State imagine this? Drivers are telling me that brake warning light signals are coming on. They are driving buses that are old and decrepit in this day and age. Dublin, Limerick and Galway got new buses. Why did Cork not get new buses? At the same time, we are being asked to pay 26% extra.

The Government always blames everyone else. It blames the local authorities for the housing crisis. It blames Irish Water for the infrastructure. It blames the HSE for the health crisis. Now, it is blaming Bus Éireann for the bus crisis. The Government has to take responsibility. It is unbelievable that people cannot get to work, school or college on time and be able to depend on the bus service.

The Minister of State mentioned BusConnects. We supported BusConnects. We engaged with it, we put in submissions and we met those involved. Right now, BusConnects is dead in the water. As long as that is not up and running, we are in big trouble in Cork in terms of buses. Taylor Swift has a song, “Anti-hero”, which has the line, “It's me, hi, I'm the problem, it's me”. I think those in the Government need to say that to themselves.

Deputy Niamh Smyth

I am glad the Deputy presented different figures from those provided in the information from the NTA. I have taken note of that because the Deputy has presented different figures for the flat fee and the 26% increase. However, I have to be factual and say to him that there are State agencies in this country that have absolute responsibility. The NTA has responsibility for the regulation of fares. It is important to outline that in order to counteract some of what the Deputy is saying. That said, I have taken note of what he said.

It is important to note that the NTA continues to engage with Bus Éireann to finalise the depot layout required to accommodate 52 charge points at Capwell. I take the Deputy’s point on the introduction of new buses in certain cities, but not in Cork, as well as his point about the conditions. The Deputy raised that very clearly here today and I have taken note of it. The infrastructure at the depot is due to be completed by quarter 4 of 2027 to support the electric bus roll-out for future network redesign launch dates.

The performance of all public transport operators is monitored by the NTA as part of the contractual arrangements in place between it and the operators. I understand the Minister for Transport and his officials continue to engage with the NTA on an ongoing basis in relation to maintaining high operational standards on all forms of public transport. That should also mean high standards and the good condition of buses that passengers have to use.

The individual operators are responsible for the management and operation of services on a day-to-day basis. In this case, Bus Éireann operates both PSO services funded by the State subvention and Expressway inter-city services, which operate on a commercial basis and do not receive any State subvention.

I can assure the Deputy the Department of Transport is committed to providing investment in our public transport network, which is clear to be seen across the country. The Minister is supportive of the Government’s goals in relation to delivering an accessible, affordable and, most importantly, reliable public transport network throughout the country, including in Cork city. As I said earlier, I have taken notes of the issues that the Deputy has raised.

Public Transport

Deputy Roderic O'Gorman

I want to raise the issue of reforming the existing tax saver commuter ticket to include shared mobility services and to recognise new work patterns like working from home, as has been proposed by several service providers. As the Minister of State knows, shared mobility is shared bikes, e-bikes and e-car share services that people can rent when they need them. It complements rather than replaces existing public transport by providing flexible transport options that connect people to destinations that fixed public transport routes simply cannot reach. The first mile and last mile of any journey are as important as the middle. We know there are people who would like to get public transport to work but the time it takes them to get from their house to the bus stop or station at either end of the commute can act as a disincentive. For many commuters, shared mobility provides that vital last-mile connection between the bus stop or train station and their home or work. For others, it offers a full-on, sustainable alternative to owning a private car for journeys that would otherwise have to be made by car.

The potential is significant. Commercial bike sharing services last year delivered more than 600,000 journeys, while car sharing services facilitated over 500,000 journeys last year. These numbers are expected to grow substantially, with estimates suggesting that expanding car sharing alone could take demand for 300,000 private cars off our roads completely.

The national policy statement on shared mobility was published last year. It highlights the OECD findings that shared mobility has enormous potential to reduce carbon emissions and support more sustainable travel, an ambition that we all support. However, the potential will only be realised if the sector receives the policy support that it needs. There are businesses operating on low-margin, high-cost models. We have already seen providers like TIER & Dott withdraw bike sharing services from Irish towns and cities, including Limerick and Navan, while Driveyou exited the Dublin car share market. If we fail to act, we risk further market failure and losing services that are essential to a more sustainable transport network.

Last year, the national policy statement on shared mobility policy referenced the potential of introducing a shared mobility voucher but I understand the sector has recently been told that the option of a voucher is now off the table. If this is the case, there is another practical and achievable solution, and that is modernising the existing tax saver scheme. Quite simply, the existing tax saver model is no longer meeting the needs of today’s commuters.

Participation has fallen dramatically. In 2019, there were about 60,000 users and that has fallen to 25,000 today. While initiatives like the 90-minute fare in Dublin have undoubtedly played a role, they do not fully explain this decline. The reality is that the tax saver model is built around an outdated model of commuting. It works best for people with fixed travel patterns and convenient access to traditional public transport, but we know that nowadays many workers split time between working from home and the workplace, and they rely on a combination of transport options to complete their journey. However, the tax saver scheme completely excludes shared bikes, car share services and other sustainable transport models, and it is not providing the incentive for a genuinely multi-modal travel model. It also remains very much focused on Dublin transport patterns.

If we are serious about encouraging sustainable travel, the tax saver scheme must evolve. It needs to become more flexible, more inclusive and more reflective of how people travel today. As a first step, I ask that the Minister for Finance directs officials in his Department to undertake a review of the tax saver scheme.

Deputy Niamh Smyth

I thank the Deputy for his heartfelt contribution. The proposal is to reform the tax saver commuter ticket scheme to include private shared mobility services. As somebody from a rural area where we totally rely on bus services, it sounds like a novel thing to have the shared mobility model of bikes, cars and all the rest. It is way beyond what we experience in more rural parts, but it is wonderful to hear about it from the Deputy.

The key objective is to ensure and encourage behavioural change in favour of the usage of shared mobility services and would support integrated transport services like bike, scooter and car-sharing through a virtual tax saver account model. The core objective is to encourage a shift in usage towards shared modes of transport in place of less efficient, congestion-inducing and carbon-intensive private car use, particularly for frequent journeys such as commuting. However, I take the Deputy’s point that the existing architecture of the scheme is for reliable, constant and regular transport rather than the patterns that most people have, which are a bit more flexible, particularly with working from home.

As the Deputy is aware, commuting employees currently have access to reliefs from benefit-in-kind, BIK, in respect of sustainable transport, namely the cycle to work scheme under section 118(5G) Taxes Consolidation Act 1999 and the tax saver scheme under section 118(5A) of the same Act. The schemes have similar objectives - to reduce car dependency and to encourage the use of public transport and cycling as more sustainable forms of commuting.

What is being proposed is the introduction of a new scheme that would allow employees to choose to assign part of their salary to pay for shared mobility services. Specifically, the sacrificed pay could be transferred to a virtual card account operated by an approved third-party commercial provider. Under this proposal, the sacrificed pay would not be subject to PAYE, USC or PRSI, while employers would benefit from reductions in employer PRSI. The actual operation of the ticketing wallet would be appropriate to the Department of Transport but there may be limitations in terms of what the current ticketing system, primarily Leap, can support.

Subject to meeting the conditions of the scheme, there is currently no impediment to employers who wish to provide a voucher in respect of a shared mobility service to an employee under the small benefit exemption. The current threshold for this scheme is €1,500 per annum per employee. It is for each employer to decide whether to utilise this provision.

The existing schemes are implemented as tax-exempt benefit-in-kind in order to keep the implementation as simple as possible and to reduce the administrative burden on employers and employees. The schemes are designed to be as straightforward as possible to encourage uptake by employers. The proposed model is more complex than the existing scheme and is something that would require engagement with stakeholders, including employers, software providers and transport operators.

It is important to note that employers are not required to take part in the tax saver or bike-to-work schemes. Where an individual's employer does not participate in the schemes, any benefits that could arise under the relevant scheme will not be available to any employees of that employer. This means that an individual cannot avail of the scheme if their employer has chosen not to participate.

However, it should be noted that if an employer does choose to participate in the schemes, employer’s PRSI is not payable on the cost of the relevant benefits when they make the associated deduction from their employees’ salary payments. Thus, there is an incentive for employers to participate in these schemes.

Deputy Roderic O'Gorman

I think we can all agree that commuting patterns have changed a lot since the Covid-19 pandemic and that idea of the rigid, five-day, ten-journey commute along the same route every day has disappeared for many workers. The tax saver scheme needs to change to reflect that new reality. Commuters want something that is more flexible, to reflect the fact that they are commuting in less regular patterns, but also to reflect the increased desire for multi-modal journeys. The idea of a flexible tax saver ticket that includes shared mobility is one that is worth exploring for these reasons.

In the context of the forthcoming budget, I ask that the Department of Finance seriously look at reviewing the scheme and design a pilot programme to see how this type of flexible ticket might work in practice. As the Minister of State discussed earlier, it could be achieved through a digital wallet that allows commuters to assign a certain portion of their gross pre-tax income each month, which they could then use to purchase passes for different transport services on a flexible basis, depending on what modalities they needed and what particular days they need it for.

It would require some additional digital infrastructure and planning, but it would achieve a lot of flexibility that the current system does not achieve. That is why I am proposing a pilot programme. I am not suggesting that we roll it out immediately, but a pilot programme would be the perfect way to explore how this might function and test the system before we undertake a full roll-out. I ask the Minister of State to bring this to the Department of Finance and her Government colleagues because we are losing people from the tax saver scheme at a dramatic rate and we have to do something dramatic to halt that.

Deputy Niamh Smyth

I appreciate the sentiment of the Deputy's contribution and I do not disagree with any of it. Particularly when we look at digitalisation and the travel wallet, all of that should be considered. I will re-emphasise to the Minister for Finance and the Minister for Transport to perhaps look at this as a pilot programme.

In considering proposals in respect of all tax expenditures, the Government must be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base and a strong and convincing case for the benefits and outcomes needs to be articulated and due consideration given to the commitment of scarce taxpayer resources for such reliefs. To be fair, the Deputy made that argument strongly.

While the conditionality around the BIK exemption for the tax saver scheme falls under the Tánaiste’s remit as Minister for Finance, the scope and conditions of the travel passes on offer are a matter for the individual transport providers. As with all tax policy measures, the tax saver scheme is kept under review by Department of Finance officials. It is particularly important in considering proposals in respect of tax expenditures that the Government is mindful of the public finances and the many demands on the Exchequer. The expansion of any scheme creates a cost and that cost must be recovered elsewhere. At present, there are no specific plans to amend the tax legislation in respect of the tax saver scheme, which is considered to be operating well.

The Programme for Government: Securing Ireland's Future contains a commitment to, within the lifetime of this Government, conduct a review of the bike-to-work scheme to boost take-up among all workers. The Minister’s Department has engaged with officials in the Department of Transport in recent months in relation to this review and the terms of reference remain under consideration.

I again thank the Deputy and will pass on his heartfelt sentiments to both Ministers in relation to a pilot programme for consideration.

Early Childhood Care and Education

Deputy Shane Moynihan

I am taking this Topical Issue with my colleague, Deputy Lahart, on behalf of the children and parents affected by Nexus preschool, which is a service provider based in Knocklyon, but which has centres and provision in communities across Dublin Mid-West and Dublin South-West. Nexus preschool provides specialist educational programmes for children with autism spectrum disorder, many of whom have been unable to secure appropriate school placements. In recent times, the service has been informed by Tusla that, as a registered early years service, it is not in a position to enrol children aged six years or older.

The issue is that the service provider has, in fact, supported children aged over six for the past number of years, with the knowledge of the local special educational needs organiser, SENO, in situations where there are not sufficient school places for those children. We are not talking about a scenario affecting only one or two children. Across the sites it operates, if Nexus is not allowed to proceed with registering these children for September, we could be looking at up to 60 children without appropriate support. This is a matter of distress to those children and their parents.

I understand that Tusla is acting in good faith with regard to the regulations in place for early years providers. However, a precedent seems to have been set in recent years whereby this service was allowed to continue to register children over six years of age. Will consideration be given to a ministerial exemption and-or constructive engagement with the provider to get things to where they need to be? We also need to look at the range of powers and options available to Tusla under the early years and childcare legislation and regulations as to what can be done to ensure compliance with those regulations. More fundamentally, we may need to look at revising the regulations, especially in the context of an issue often raised in this House, namely the lack of sufficient special education spaces, particularly for children with ASD.

Deputy John Lahart

Parents of children with special needs require certainty and predictability. Their lives and those of their children are challenging enough without having to endure distress and anxiety caused by uncertainty and unpredictability. The Minister of State appreciates that. As my colleague Deputy Moynihan said, parents are deeply concerned that Nexus in Knocklyon and other locations has been informed by Tusla that due to its registration as a part-time service provider, it cannot take children who will be aged six or older for the 2026-27 school year. Nexus has been warned it could face sanctions, fines or prosecutions if it continues to provide services for those children.

The families affected have argued that this decision could leave their vulnerable children without appropriate educational supports at a time of severe shortage of special school and special class placements. Deputy Moynihan and I had a meeting with the parents on Tuesday, where we heard at first hand about those anxieties. Parents are frustrated that they may be forced to choose between keeping their child at home, having to leave employment to provide care and placing their child in an unsuitable educational setting.

Deputy Moynihan has highlighted the crux of the issue. As the parents have pointed out, Nexus has already been supporting children aged six and over for many years. It has undergone inspections without this issue being highlighted heretofore. Families are seeking clarity as to why a difficulty has now arisen and what steps will be taken to ensure their children are not disadvantaged. Tusla must explain why the provision of this care was okay until now. Was there an incident? What changed? Transparency on the part of both Tusla and the provider is needed before we can move forward.

Deputy Niamh Smyth

I thank the Deputies for raising this issue. It seems absolutely ludicrous that this service was being provided to children aged over six and that Tusla was happy to allow it to continue but that things have suddenly changed. Deputy Lahart is right that transparency for parents is incredibly important, as is having certainty and predictability in respect of the service into the future. In today's world, we cannot leave children in a vacuum at any age, and particularly when they have previously had a service available to them up to the age of six. That cannot be allowed to happen. I appeal to Tusla to provide that transparency, certainty and predictability to parents immediately. It is absolutely crazy that because of this, parents might either have to leave their job or find an alternative, possibly unregulated or unsuitable, education setting for their children.

Tigers Childcare and Nexus Preschool provide a full daycare service, as the Deputies alluded to, which opened in 2024. The service is registered to provide care and education to children between two and six years of age across two distinct services at the same address, both with their own staffing teams. The service was inspected on 4 March 2026. During that inspection, the service was found to be operating outside of its registered status in regard to two children over the age of six who were in attendance on the day of inspection.

Should the providers wish to lawfully provide services for children who do not have a school placement, they can consider seeking approval to become an education provider pursuant to section 14 of the Education (Welfare Act) 2000. The service providers could alternatively reach a private arrangement with the parents of the children to provide services in accordance with the home tuition scheme. However, this could only be operated separately and distinctly from the existing registered early years service. The question is how to accommodate 60 children, as Deputy Moynihan noted. The service providers were requested to revert to the terms of their registration status.

Under the early childhood care and education, ECCE, programme, the provision of an exemption to the upper age limit where a child has special or additional needs is made under review by the Department of children in conjunction with the Department of Education and Youth. It is a requirement that any request for an exemption to the upper age limit under the ECCE programme must include a letter from a medical specialist or therapist specifically recommending why an ECCE service would meet the child's specific needs in a more appropriate way than a primary school.

In deciding on applications for exemptions to the ECCE age limits, the Department of children is guided by a review of the exemption to the upper age limit process carried out by the National Disability Authority, NDA, for the Departments of children and education in 2018. In its published report, the NDA concluded that it is in the best interest of children with additional needs to transfer to primary school with their age cohort. All cases are examined on their own merits. While many children granted an ECCE overage exemption will reach the age of six years while in their final year in ECCE, overage exemptions are not granted to children who have already reached the age of six.

Deputy Shane Moynihan

I thank the Minister of State for that comprehensive response. The providers in question have indicated that they are exploring the possibility of securing education provider status. I understand they have started those discussions. I fully acknowledge the parameters of the regulations, as set out in the response from the Department of children.

Like Deputy Lahart, what I am asking for is certainty. Paths forward have been identified. What is needed now is urgent engagement between Tusla, the Departments of children and education and the provider to ensure we do not have a situation where children who are particularly vulnerable, given the nature of their needs, have to be moved from an environment in which they are comfortable and where they know the people caring for them. In fairness, Nexus has made it very clear that where primary school places have become available at other sites across both constituencies, they have assisted with that transition. In this instance, they have been providing a safety net for these children to ensure they have care.

I fully appreciate the remit of the regulations but it seems from the Minister of State's response that there could be a path forward. I ask that there be urgent engagement on the matter.

Deputy John Lahart

Will the Minister of State clarify on whose behalf she is responding? Is it the Minister for children or the Minister for education?

Deputy Niamh Smyth

I am responding on behalf of the Minister for Children, Disability and Equality.

Deputy John Lahart

One of the things that strikes me about the reply, which is not the Minister of State's responsibility, is its technical nature and the lack of child-focused orientation it displays. There is no comfort in it for parents as to what will be done for their children in six weeks' time. That is the real letdown.

I fully concur with Deputy Moynihan that there is an avenue available to move this situation forward. I am grateful for the Minister of State's indication in that regard. If there is a child-focused view and perspective, then the Departments of children and education will move Heaven and earth to ensure that Nexus is in a position to qualify and to jump through the hoops that are there.

I thank the Chair for allowing me a bit of latitude here. I am not saying Tusla is wrong in its position. Nexus may not have been upfront with us but we have no reason to believe that is the case. Tusla has not explained why it allowed this service to continue. According to the provider, there were inspections previously. Let us focus on the children. They need places and their parents need certainty for 1 September.

Deputy Niamh Smyth

I totally concur with the Deputies' appraisal of the response to the effect that there is an avenue open now for Tusla, the provider and the Department of education to sit down and find a pathway forward. There may be a narrow window, but anything can be done within six weeks. It would seem deeply unfair that, because there may be discrepancies related to two children, 60 children and their wider network of family, parents and friends would be impacted. To give to any family the traumatic news that perhaps within six weeks' time their child will not have a place seems deeply unfair. Therefore, I appeal to Tusla to sit down with the provider and the Department of education to find a pathway forward, take away the uncertainty and give predictability to parents as quickly as possible.

Once again, I thank both Deputies. I know that when you go to public meetings like those in question, there are tough stories from parents and you may feel a little inadequate sometimes in being able to deal with these things as quickly as possible. I am glad the Deputies used their time here today to make the presentation and to campaign for the parents. I will relay their very heartfelt sentiments to the Minister, Deputy Foley, this afternoon.

The Minister wishes to acknowledge the role of the Tusla's early years inspectorate, which is the statutory regulator of early years services in Ireland. Regulation includes registration, inspection and, where necessary, enforcement. Regulation is very important. It is the gold stamp of approval for any service. The question here is one of why now when the service has already been in place for what I imagine is many years. Tusla's early years inspectorate promotes and monitors the safety and quality of care and support of children in Tusla-registered early years services in accordance with the Child Care Act 1991 (Early Years Services) Regulations 2016. The ECCE programme currently provides for exemptions to the upper age limit in certain circumstances, as I have outlined, to support children with additional needs. The provisions of the exemptions provide an opportunity to ensure that these arrangements continue to meet the needs of children and families while remaining consistent with the objectives of the ECCE programme.

I will relay to the Minister the Deputies' heartfelt remarks on behalf of these most vulnerable children and their families.

Business Regulation

Deputy John Clendennen

I thank the Ceann Comhairle for selecting this matter on the cumulative regulatory burden and the rising cost of doing business. It is certainly not an abstract issue. As someone born and raised in a family business, I am acutely aware of the challenges that many businesses face. I am very conscious that the two Ministers of State at the Department of Enterprise, Tourism and Employment, Deputies Niamh Smyth and Alan Dillon, and the Minister, Deputy Burke, have very much taken a proactive approach in their Department, constructively leading to strong results by adopting a simpler, lighter and faster approach to enterprise and the sector.

We have seen nearly 15,000 new companies registered in the first half of 2026, a 13% increase on the same period last year. At that pace of increase in registration, we are going to see one of the strongest years ever in relation to company registrations. There is no doubt that Ireland is a great place to invest. We are seeing exceptional growth in artificial intelligence and digital technology, as well as pharmaceuticals and manufacturing. For many small and micro-businesses and family businesses, however, viability is becoming an increasing challenge. These are businesses that are the cornerstone of local communities, sponsoring local events, community groups and sports organisations. For many of them, it is now a question of survival. Since I entered this House, I have done a considerable amount of work trying to highlight that. I carried out a survey last year on foot of which 600 business owners highlighted the concerns they had around the future viability of their businesses. This has been built on by ISME, which found that 78% of respondents cited business costs as a big issue facing SMEs. That is also recognised by the Small Firms Association, which points to a 40% cumulative increase in costs over the past three years. My fear is that the burden of these costs is being placed on employers and is reducing the number of employees and employers, specifically small businesses. Not every business has the potential or wants to scale up.

We have made progress in relation to the likes of the 9% VAT rate. I have met many of these businesses over recent weeks, and they have basically said that this was the difference between being in profit and being in loss. It is Government recognition of the challenges and is very much welcomed, but we need to continue to address viability.

When we look at some of the reports from the Commission for Regulation of Utilities, CRU, in recent weeks, in which it has stated that more businesses need to consider switching, we note that this comes down to a lack of time for many of them. They are spending more time behind a desk and less time at the counter, where they should be serving customers. There are growing regulatory complexities and burdens, demanding tax obligations, investment needed in energy efficiencies, insurance premium hikes, complex applications for Government supports, and unattainable legal and planning costs.

An Coimisiún Pleanála announced this week that it will be up to a year before it has a decision on the water pipeline from the mid-west to Dublin. If that is what it takes for the largest infrastructure development the country has ever seen, at a cost of €5.9 billion, what encouragement does it give to a small business that wants to expand or introduce a storage facility? There is a real need for urgent action by the Government to engage with An Coimisiún Pleanála to ensure this process is not delayed and that we see delivery from small business, societal and economic perspectives.

Overall, the SME test has been beneficial and productive, and we need to continue to do that. I ask that concrete steps be considered for budget 2027 that will see meaningful and impactful measures to ensure the survival of small and medium businesses, and to build on the work we have seen with the recently introduced 9% VAT rate for the hospitality sector, provided for in budget 2026.

Deputy Niamh Smyth

I thank the Deputy, including for the energy he brings to the Oireachtas committee with responsibility for enterprise. He and his colleagues come from a genuine business background, so he is speaking from experience. That makes a huge difference at Oireachtas committees and in feeding into the work of the Department with me, the Minister, Deputy Burke, and the other Minister of State, Deputy Dillon. It is very helpful and very much appreciated. I thank the Deputy for the energy and experience he brings to his role.

I want to outline the Department's priorities for Ireland's Presidency of the Council of the European Union, centred on building a more competitive, innovative and resilient European economy. The Deputy's question is particularly around the regulatory burden. We have to have the relevant conversation knowing that, in the background, the evidence is available from the Draghi and Letta reports that right across Europe, not just in Ireland, we may have lost sight of what is required a little by being so correct about how we do things. We have laid huge burdens on the SME sector in particular. As the Deputy rightly stated, SMEs do not have huge human resources departments. They are multitasking, as they have to, and they are very much the backbone of this country. In light of that, we are using our Presidency to ensure we are harnessing competitiveness, including by paring back on the regulatory and bureaucratic burden that has been on businesspeople in this country for a very long time.

A key cross-cutting priority will be reducing administrative burdens and improving the business environment and ecosystem. My Department will advance simplification measures to ensure EU rules are proportionate, effective and supportive of enterprise. When we say that, we are not saying that it somehow becomes the Wild West to do business. That is not it. It is about giving that gold stamp of approval to businesses, but also taking away the regulatory burden. "Simplifying" is probably a better word.

The Minister, Deputy Burke, is leading the way on all this and established the cost of business advisory forum in June 2025, delivering on a programme for Government commitment. Its purpose is to examine key cost drivers and assess the impact of the rising cost of regulatory pressures on businesses in Ireland. The forum's independent report and recommendations will be presented to the Government and published on 22 July. I thank that committee for its incredible work in respect of that forum. It has been very helpful to us in our Department. These recommendations will aim to help businesses remain competitive and resilient in an increasingly challenging economic environment.

The Action Plan on Competitiveness and Productivity was published by the Department in September 2025. It contains 85 actions. Actions are important. We need to consider these not just as recommendations but as actions that we can take as a Government to ensure our competitiveness and productivity performance. The aim behind one of the themes in the plan, "Regulating for Growth and Controlling Costs", is to ensure that the regulatory costs faced by Ireland's businesses are kept to a minimum. The action plan includes measures to support the development of a more effective regulatory system that seeks to support sustainable economic growth while controlling overall cost levels, because we know they have grown exponentially and, in some cases, have got out of control for people trying to stay in business.

One such measure is the introduction of the red tape challenge across government to significantly reduce regulation and administrative burden for SMEs, which is incredibly important. Work on the red tape challenge is under way, and progress will be closely monitored. Implementation of the action plan is at an advanced stage. Officials from my Department provided an update on progress at the Competitiveness Summit on 13 July. For priority actions, 65.4% have either been implemented or are on track, while 34.6% are partially implemented and considered in progress. I will let the Deputy come back in.

Deputy John Clendennen

I have a number of asks. First, we need to look at the effectiveness of the local enterprise office, LEO, reporting to the local authority and Enterprise Ireland. There is a question there of effectiveness. I would also like to see the local authority leading out on enterprise parks to give opportunities for businesses. I would like to see more competition in the banking sector and looking at new creative ways of accessing finances for small businesses. I would like to see the following approach. A good example is what the Vintners’ Federation of Ireland, VFI, has proposed in relation to an on-trade keg of draft beer or cider sustainability scheme where there would be proportionate and focused support for small pubs, considering their vital role in local communities. They are no different from newsagents or hardware stores where they are providing not just employment and economic activity but they are social anchors in our community as well. This scheme proposing a tax credit of €20 on every 50-litre keg of draft beer would be a huge tangible benefit to our local communities. I ask for it to be considered in the 2027 budget. This will not just protect the heart and soul of our commercial trading but it will protect our social activity and jobs and will support businesses. We would continue to see that rural and regional development and activity and build on the work that has been done.

I do not want this to be seen as being critical of the Government. We are moving in the right direction. We are on the right trajectory in relation to trying to cut out that red tape to ensure there is a seamless way of going about business and that it is encouraged. Far too often, we see now where there are challenges around succession from one generation to the next in family businesses. We have to ask: why is that happening? We need to see a broader and greater appeal and ensure that we do not see lights go out. One in five pubs has closed over the past 20 years. We see similar trends in relation to shops like newsagents and others. There is a real opportunity now to build on the work of VAT 9 in the last budget and to ensure that we continue to support small business.

Deputy Niamh Smyth

I thank the Deputy very much for his presentation. It is very heartfelt but, equally important, it comes from his experience in both business and on the committee. I take his point on the effectiveness of LEOs. We can see some LEOs being hugely effective but maybe that is not the same across the country. We may need to do a mapping exercise to see the effectiveness of all our LEOs across the country. I concur with his presentation about the importance of our local authorities being able to develop enterprise parks. In my experience of the Cavan and Monaghan area, we have nowhere to develop. There may be no finance or no obvious channel of finance for the local authority to do it. Enterprise Ireland and IDA are incredibly agile and energetic Government agencies. At that local level, we find that many businesses are operating from a back shed, particularly in country parts, and along highways and byways. It is about providing the facilities, ecosystem and infrastructure. Our local authorities are very energised about doing that. We need to find ways of channelling that energy and to give them the finances and the infrastructure to do it. I concur with that. I am working with the Minister, Deputy Burke, to see what avenues and finance we can provide to our local authorities to achieve that.

The Deputy is right about access to finance. We hear all the time that the pillar banks are not always the easiest for the SME sector to do business with and are not always the great risk-takers that our SMEs have to be and need to be. That is what gives them the fire in their belly every day of the week to get up and run their businesses. We need to make finance more accessible to them.

Regarding the proposal the Deputy made for the publicans, I like his term "social anchor". I agree with that, particularly in country parts and in small towns and villages. In my town, we went from 46 pubs down to two or three that are in business today. In today's world, we do not need 46 pubs, however, those who remain and continue to invest in those pubs and that industry are incredibly important. They are a social anchor and should be supported as well. I have a very detailed reply to give the Deputy, and I will share that with him.

Social Media

Deputy Pa Daly

I thank the Minister of State for coming in to deal with this issue when other colleagues were not available. She will be able to bring her experience of this area to this debate. I am slightly caught for time, so I will try to parse it a little bit. I wish to ask the Minister of State about the harmful content on social media platforms.

I read reports in the newspapers this morning, for example, about the death of Ann Widdecombe. British police are investigating some comments that have been made - it has been reported already - online celebrating her death. They were saying that it was good news and that they hoped it was extremely painful. That has already been widely reported.

Social media has many very positive aspects, such as giving people a voice and allowing people to communicate, including people of all ages. The Digital Services Act was introduced. It was to ensure a safe, predictable and trusted online environment and to prioritise greater activity and online safety. There is the Online Safety and Media Regulation Act 2022 to protect children and the public from harmful and illegal content. There is a danger. It is an offence if something can harm the physical, mental or moral development of children or if it is an incitement to hatred. In this State, we have a lot of the very large online platforms operating here.

I wish to express my sympathy to the family of the woman who was killed in Killarney. On her social media platform, on her Instagram account, there are over 2,000 comments. They are still available if you open your Instagram app this morning. Many of the comments are mocking the deceased woman. While we know violence against women is a crisis and femicide in Ireland is a crisis, it is overwhelmingly men who carry out these acts. These are men of all cultures, races and ethnicities. However, social media giants have a responsibility and are clearly not stepping up to the plate. They are not complying with their obligations. They are allowing comments. If they were said in Temple Bar on a Saturday night, the person would be arrested for at least a breach of the peace or threatening, abusive and insulting words or behaviour with intent to provoke a breach of the peace. Clearly, some of the comments that are being made - I do not want to list some of the comments - are mockery of a dead woman. It is allowed. It is online and in public. There seems to be no monitoring and regulation of these comments. Somebody even said that they hope these comments are not going to be deleted to suit one's ideology, which they misspelt. That is the kind of narrative that is going on. They are mocking her beliefs and her. It is similar to what is being investigated by the police in Britain. I ask the Government to take a stronger line with the platforms, or at least, contact them.

Deputy Niamh Smyth

I thank the Deputy very much for raising this important issue. I pay my respects and express my condolences to the family of Ann Widdecombe. It was a shocking and heinous crime that happened to her. It is the same thing for the lady in Killarney. However, the points the Deputy raised are so true and accurate. Social media platforms fuel this.

To allow comments like that to sit on the account of somebody who has lost their life in such tragic circumstances, with the further traumatic impact that has on her family, is just not acceptable. I really am of the view that the likes of The Irish Times or the Irish Independent would not be allowed to publish comments like that. They fuel that hate and allow it to continue and be exacerbated. To perpetuate that kind of vile commentary online is shocking.

I am going to take time after this debate to look at the Instagram account the Deputy raised today to see for myself. I do not disbelieve the Deputy. It upsets me so much to see that is allowed. Where is the monitoring of it? The Deputy and I both sat on the Oireachtas committee where we had companies in and were promised that social media platforms would not be the wild west any more. What the Deputy has presented today certainly does not concur with that sentiment.

I thank the Deputy for raising the important issue of online safety. It is a priority for me and across the Government, particularly when it comes to the protection of children, women and young people. It is one of the key themes of Ireland's EU Presidency and it is an explicit whole-of-government priority in the national digital strategy, published in February of this year. We have a robust online safety framework in Ireland that should be respected and regarded. It comprises the Online Safety and Media Regulation Act 2022, the EU's Digital Services Act, and the terrorist content online regulation. Together, they place obligations on online platforms, including social media platforms, to put measures in place to prevent and limit the spread of illegal and harmful content on their services. Last July, the framework was enhanced when the online safety code came into full force. The code includes provisions designed to strengthen the protection of children online. For example, it obliges designated video-sharing platforms to implement measures to ensure that under-18s do not have access to adult-only material, such as pornography. To comply with that provision, platforms are required to use robust age assurance measures. As the Deputy knows, the Government is working with our European colleagues to come up with an age limit on access to social media platforms. I think that is a must. The Government is developing an age verification tool to support compliance with that obligation. It will only confirm to a platform whether a person is over or under 18. No other personal information is revealed to the platform, so it will meet high standards for protection of privacy. That tool will be offered as a service on the digital wallet, on a voluntary basis.

Coimisiún na Meán, as Ireland's online safety and media regulator, plays an important and central role in supervising and enforcing the regulatory framework. I have worked particularly hard on the prohibited practices piece, which will come into effect on 2 August.

Deputy Pa Daly

We are running over time but I will make one more point. If, as it provides in the Online Safety and Media Regulation Act, we are to protect children and adults from online conduct, how does it look as an example to younger people in particular when this content is still allowed to be there? That is the example that is being set for people who are starting off on their online journey.

Deputy Niamh Smyth

The Deputy is right - it should not be there. It only encourages more of it and sends the wrong message to young people. I would appeal to the social media companies, particularly in the case the Deputy has raised this morning, that it be removed immediately. I am going to go and look at the Instagram account he raised today. It is shocking. We have strong regulation in place and I would appeal to the social media companies to respect that and regard it.

We are establishing the national AI office, as the Deputy knows, and it is incredibly important that the regulations be adhered to in respect of the prohibited practices piece. The regulation is designed to ensure that illegal and harmful content - there is no question that it is harmful content - is more likely to be identified, removed and militated against. New rules to address the challenge of AI have been adopted recently and will come into force on 2 August. The Government favours this European-wide approach to the digital services, which will make it more straightforward for serve providers to comply and regulators to oversee. Digital services are provided across borders and our response should be the same. Along with supervising and enforcing regulation, raising awareness is another tool to combat harmful content online. Coimisiún na Meán is working in this area.

I will take a moment to thank Hotline, which does incredible work in this area, and An Garda Síochána. I appeal to members of the public who find harmful content online to make a complaint to Coimisiún na Meán, Hotline, An Garda Síochána and, more importantly of course, to the platforms themselves to remove the content immediately.

Dáil Éireann debate - Wednesday, 15 Jul 2026