Dáil Éireann Debate, Thursday - 23 May 2024
74. Deputy Mairéad Farrell asked the Minister for Enterprise, Trade and Employment the general supports available for small businesses currently struggling; and if he will make a statement on the matter. [22991/24]
View answerThis Government has adopted an active approach in supporting the Irish SME sector across multiple crises over the last number of years. Over the two-year period prior to Budget 2024 a total of €12 billion was provided in cost of living and doing business supports, comprising a mix of permanent and one-off measures (most significantly the Temporary Business Energy Support Scheme). Budget 2024 also contained several measures which will support businesses facing increased costs.
• €257m in support announced through the Increased Cost of Business grant
• the 9% VAT reduction for gas and electricity was extended for an additional 12 months, until the 31st of October 2024;
• the temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were extended until the 31st of March 2024; and,
• an increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods.
I recognise costs are impacting firms, and this motivated the recent introduction of a range of additional measures aimed at reducing costs for small and medium sized businesses. These include:
• Ensuring that the employer PRSI threshold is explicitly considered as part of the Low Pay Commission deliberations and is reviewed on each occasion that the minimum wage is increased.
• Increasing the employer PRSI threshold from €441 to €496 with effect from 1 October 2024
• Reopening the Increased Cost of Business Scheme for another 14 days and launching a second phase of the Scheme targeted at businesses in the retail and hospitality sectors
• Doubling the Innovation Grant Scheme from €5,000 to €10,000
• Increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%
• Widening the eligibility for the Trading Online Voucher and doubling the grant to €5,000
• Increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000
• Widening the eligibility for the Digital for Business Consultancy Scheme
• Launching a new ‘Ireland’s Best Entrepreneur Programme’ to encourage entrepreneurship
• Launching the new online National Enterprise Hub for SMEs to access information on the wide range of Government business supports
• Implementing an enhanced ‘SME Test’ by the Department of Enterprise, Trade and Employment in conjunction with the Department of An Taoiseach
• Reviewing forthcoming ESRI research on the impact of Statutory Sick Leave before deciding on any further increases
• Reviewing the proposed Roadmap for Increasing Minimum Annual Remuneration Thresholds for Employment Permits.
I also note that the business formation rate remains significantly above the rate of business closure. The most recent data available from the Companies Registration Office shows that as of 20th May 2024 there were 9,483 new companies incorporated in 2024. This compares to 800 liquidations.
I would also emphasise the ongoing support my Department and its agencies provide for enterprise more broadly across Ireland, with a full range of programmes aimed at aiding firms to develop and grow. As set out in the White Paper on Enterprise 2022-2030, ‘our vision is for Irish-based enterprise to succeed through competitive advantage founded on sustainability, innovation and productivity, delivering rewarding jobs and livelihoods’ – the recently announced measures reflect this.
