Dáil Éireann Debate, Tuesday - 9 July 2024
289. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment what measures are being committed to by his Department in supporting SMEs and the hospitality and retail sectors, which are experiencing ongoing impacts due to rising costs; and if he will make a statement on the matter. [29806/24]
View answerOn 14th May 2024 the Government agreed a range of measures with the aim of reducing costs for small and medium sized businesses, including in the hospitality and retail sectors.
As part of re-opening the Increased Cost of Business (ICOB) scheme and given the greater impact that increased costs are having on the hospitality and retail sectors, as noted in the DETE-DSP joint working paper titled ‘An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’, it was agreed that business operating in these sectors will receive a second payment for approved businesses or a double payment for new registrations under the ICOB scheme.
As you are aware, Local Authorities are administering the ICOB scheme on behalf of my Department and the priority is to get payments to businesses as soon as possible. €125m has now been paid out to over 60,000 businesses right across the country.
A range of other measures are also being brought forward to assist businesses, including:
• Doubling the Innovation Grant Scheme vouchers from €5,000 to €10,000. This change came into effect from 1st July and any applications for vouchers from that date will have the higher value voucher issued.
• Increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%.
• Changes are currently being incorporated to widening the eligibility for the Trading Online Voucher, extending it to all sectors, including retail and hospitality, up to 50 employees, modernise eligible expenditure and doubling the grant to €5,000.
• Increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000.
• Changes are currently being made to widen the eligibility for the Digital for Business Consultancy Scheme and extending it to all sectors, including retail and hospitality, with up to 50 employees.
• Launching a new ‘Ireland’s Best Entrepreneur Programme’ to encourage entrepreneurship and startups in under-represented groups.
• A new online National Enterprise Hub for SMEs to access information on the wide range of Government business supports. I am due to launch the Hub, along with Minister Higgins, on Wednesday 10 July. It can be accessed at www.neh.gov.ie and signposts to over 180 different Government service or supports ranging from EI and LEOs to the SEAI and Board Bia.
• Implementing an enhanced ‘SME Test’ by the Department of Enterprise, Trade and Employment in conjunction with the Department of the Taoiseach. My Department will shortly issue new guidelines on the SME Test and will work with other Departments to ensure the SME Test is an integral part of policy making.
• The removal of the €125 fee for tables and chairs for the purpose of outdoor dining by S.I 196 of 2024 - Planning and Development (Street Furniture Fees) Regulations 2024, which has been signed by Minister O’Brien.
• The Minister for Social Protection will increase the employer PRSI threshold from €441 to €496 with effect from 1 October 2024. This will ensure that employers with employees working full time on the national minimum wage will not be required to pay the higher rate of employer PRSI of 11.05% and will instead pay the lower rate of 8.8%.
• 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.
• Review the proposed Roadmap for Increasing Minimum Annual Remuneration Thresholds for Employment Permits, which is ongoing.
