Vol. 1072 No. 5
7. Deputy Aindrias Moynihan asked the Minister for Enterprise, Tourism and Employment for the up-to-date position on the development of a tourism plan for the Muscraí district to include the Gearagh, County Cork; and if he will make a statement on the matter. [50804/25]
I must tell the Minister about this magnificent place, the Gearagh, which is right beside Macroom. It formed after the last Ice Age. It is the remains of a post-glacial alluvial rainforest. It is a magnificent place. Migrating birds have nested there for many generations as they travel north to south and back again. People, whether local or international, may not know it well. We want to bring this wonderfully magnificent place to the attention of more people in order that they can share and enjoy it. Can the Minister provide an outline of what efforts are being made to promote the Gearagh?
First, I should say that we will have a new tourism plan, hopefully in the next month, following consultation right across Government. That should be a good response to where we need to be for future-proofing the sector.
I should clarify that the promotion and operation of regional tourism is a matter for the local authorities, Fáilte Ireland and other tourism stakeholders. Cork is represented by three regional tourism brands, namely Wild Atlantic Way, Ireland's Ancient East and Ireland's Hidden Heartlands.
Fáilte Ireland's regional tourism development strategies for the period 2023 to 2027 provide a roadmap for the tourism industry and all stakeholders involved in tourism. The development strategies set out a strategic approach to unlocking the commercial potential in each region. They ensure focus on tourism development is sustainable and regenerative and that the benefits accrue to local communities and to nature. To activate these strategies, Fáilte Ireland has established localised five-year destination experience development plans, DEDPs. These local development plans are highly collaborative in nature, involving local stakeholders, and are reflected in agreed action plans where ownership is assigned among the various parties.
The west Cork and Kenmare DEDP, which encompasses Muscraí, was launched in quarter 4 of 2023 to efficiently manage the delivery of actions within the DEDP. Three thematic subgroups were established based on the prevalence of actions emerging in this plan, namely artisan food, outdoor activities and marketing. In 2025, Fáilte Ireland has worked to create six new thematic itineraries for the destination which focus on food experiences - including high-end food, both coastal and inland - outdoor activities and eco car-free travel itineraries. In addition, the Muscraí tourism action plan is incorporated into the work of the destination experience development plan implementation group.
I acknowledge the huge work that has been done in developing the west Cork and Kenmare development plan. As part of that, there is work also with Údarás na Gaeltachta on developing the Muscraí plan. Muscraí is very much focused on the Gaeltacht area. There is an amazing offering between food, culture, language, the landscape and so much more. The Gearagh is right on the edge of this; it is not the central focus of that plan. It is an amazing nugget on a corridor between the large population centre in Cork, the airport and right out to the Wild Atlantic Way. It is almost slipping between two stools. Can some effort be made to bring the Gearagh to the fore and to get greater awareness of it?
I thank Deputy Moynihan for his question. Absolutely, I am open to working with the Deputy on that. Maybe we could set up a meeting with Fáilte Ireland to see what is specifically being done for the Gearagh to ensure that the message about its natural beauty is being advertised. Údarás na Gaeltachta and Fáilte Ireland met recently to form a strategic partnership. They have signed a memorandum of understanding detailing their commitment to the area, particularly on the Gaeltacht side. In the context of the Deputy's specific question, I would be happy to set up a meeting to try to see how we can unlock the potential that exists.
One of the key issues in tourism that I am focusing on is trying to see how we get performance indicators into the tourism policy. We are spending a great deal of money. The sector is probably worth €8 billion or €9 billion at present. It has stabilised. It has got back to where it was prior to Covid. We had extraordinary growth last year. It stabilised this year, and it presented some challenges. In relation to a number of matters, including the cap, enhancements to the business sector and growing the SMEs, it will provide a strong value offering. I suggest that we could have a meeting with Fáilte Ireland on the matter to see where we might take things from there.
The proposal to meet with Fáilte Ireland is both positive and one we should take up. There are a number of stakeholders involved. Having ESB, which is the landowner, participating in such a meeting would be very important, particularly as it owns the Gearagh area, which is part of the Lee reservoir. While they have done some work on bird hides, walkways, etc., many feel that there is a lack of energy or interest on the part of the ESB in advancing and promoting the Gearagh. There is limited signage on site for interpreting what is there and limited car parking. Many locals and stakeholders would also feel that there is limited interest on the company's part.
It would be important to engage with or energise the ESB, given that it owns the land. Even if it was not interested in continuing at the site, there is a possibility of transferring the land to a body like the NPWS while allowing the ESB to continue as the authority for operating the reservoir.
I am happy to bring in the stakeholders to see how we can improve the offering. I have no objection to that, especially when, as the Deputy has well described, the asset could have great potential. That is what we need to do. We need to get back to the authentic beauty that Ireland has to offer and the authentic céad míle fáilte that we are so renowned for worldwide. We can do a huge amount of work on that in the upcoming tourism plan, on which I look forward to working with all my colleagues. The tourism officer has had a number of meetings with the DEDP implementation group. I would be happy for us to do further work, have that meeting and talk to the various stakeholders.
8. Deputy Tony McCormack asked the Minister for Enterprise, Tourism and Employment the steps he is taking to ensure that County Offaly does not fall further behind neighbouring counties in attracting IDA Ireland investment and securing employment opportunities; if his Department will commit to increasing the number of IDA Ireland site visits and targeted investment in Offaly; and if he will make a statement on the matter. [50722/25]
I thank the Deputy for his important question. As somebody from a rural constituency, I am aware of how incredibly important IDA Ireland site visits are. I know the Deputy feels very strongly about those engagements as important opportunities for his county and the midlands.
IDA Ireland remains committed to regional development as one of four key strategic objectives of its strategy for the period 2025 to 2029, Adapt Intelligently. The aim of this ambitious strategy is to secure 550 of the 1,000 investments targeted over the lifetime of the strategy to the regions, including 40 in the midlands. Over half of the 973 investments won under IDA Ireland's strategy for the period 2021 to 2024 went to regional locations. Some 31 of these were in the midlands region, exceeding the strategy target of 25.
There are 1,420 people currently employed in Offaly across 11 IDA Ireland-supported companies. Figures show that employment among IDA Ireland clients increased by 26% in the region over the past five years. The midlands has a significant ecosystem of well-established companies across life sciences, technology, global business and financial services and engineering and industrial technologies. IDA Ireland will continue to position the midlands as a competitive and attractive destination for global investors.
In relation to site visits, I am advised that to the end of quarter 2 of this year, there were two visits to County Offaly, five in 2024 and three in 2023. I should state, however, that these figures represent individual visits and are not necessarily indicative of the number of companies that have visited. In addition, site visits may not necessarily be a true measure of the overall level of FDI activity in a region or county. The goal for the coming years is to build on the region's strengths and competencies to win investment, with a particular focus on high-value manufacturing, services and research and innovation opportunities across established clusters.
In the past ten years, IDA Ireland has made 240 site visits to Westmeath but only 45 to Offaly. That is a more than five to one imbalance between two neighbouring counties in the midlands. IDA Ireland is also overnighting most of these itineraries in Athlone, where it wines and dines potential clients and, therefore, has a better chance of landing them in the area. The people of Offaly will not stand for being ignored or pawned off by a State agency that is supposed to treat all counties equally. Does the Minister of State accept that this looks like favouritism? What immediate steps will she take to ensure that IDA Ireland directs more visits and resources to Offaly? To be honest, over the most recent period, it has been a case of everything being the same. We need that to change.
I understand the passion and frustration of Deputy McCormack. While he gives us the figures regarding what is going to Westmeath and Offaly, there can be many reasons for that, although I am not defending it in any way. If the Deputy would like me to facilitate a meeting between him and IDA Ireland regarding the visits to County Offaly to see if there is more we can do to bolster those visits, I would be more than happy to try to facilitate him.
A core objective of IDA Ireland is to enable, influence and deliver a competitive property offering that supports the winning of FDI and the growth and expansion of indigenous clients within Enterprise Ireland's portfolio and promotes national economic investment. The availability of quality business parks and strategic sites is a critical component of the regional value proposition and winning investments in the regions. It is crucial that the midlands region has a competitive and sustainable offering to enable the attraction and retention of jobs and investment in the area.
I have a list with me of the companies that have visited County Offaly. As I said, if the Deputy wants me to facilitate a meeting in the future, I am happy to do so.
I thank the Minister of State for the offer of a meeting. Unfortunately, when I have had meetings with IDA Ireland, I get very little information because it is withheld due to it being of a sensitive nature. IDA Ireland-supported employment in the midlands fell last year by 0.45%. Offaly’s only IDA Ireland business park is already full. We need another park. Without new sites and investment, Offaly simply cannot compete with neighbouring counties. What commitment can the Minister of State give today that Offaly will see targeted IDA Ireland investment, including a newly expanded advance business park in Tullamore, with a clear timeline for delivery, as part of its new national plan? Tullamore was earmarked for an advance unit. Without the space to build, however, this will not happen.
The goal in the coming years is to build on the region's strengths and competencies to win that investment. I take the Deputy’s point that you have to have the facilities - sometimes you have to build it and they will come. Very often, the metric that gets people to come is if they see nice facilities and all the wraparound things, such as infrastructure, housing, footfall or whatever. I take the Deputy’s point. As somebody from Cavan-Monaghan, I know that we do not get many visits either, so I feel his pain. From my dealings with IDA Ireland so far, I know that sometimes it cannot dictate where companies go because their representatives come with particular requirements or a vision in their heads as to where they want to go. I take the point that a balance has to be struck if we are to create the proper regional development that we are all concerned about. A part of that is for IDA Ireland to have a greater spread across the regions. I take the Deputy’s points, which are very valid, and I will raise them with IDA Ireland.
9. Deputy Albert Dolan asked the Minister for Enterprise, Tourism and Employment the number of investments IDA Ireland is targeting in the west under its current strategy; its performance in investments in the west under the previous strategy; and if he will make a statement on the matter. [50584/25]
The work of IDA Ireland cannot be underestimated. It has a proven, serious track record of delivery right across the country and of bringing in business and creating jobs. Under the current strategy, how has IDA Ireland performed in the west of Ireland, what is the plan for the future and where are we going from here? Ultimately, it is vital that we make a success of the west. I would appreciate it if the Minister could speak to IDA Ireland’s performance under its strategy.
IDA Ireland’s regional strategy has a proven track record of success, and the agency has reaffirmed its strong commitment to regional development as a core pillar of its strategy for the period 2025 to 2029, which I launched some months ago. The strategy aims to secure 550 regional investments over its lifetime. That is 55% of all investments, including 100 in the west, reflecting IDA Ireland's ongoing commitment to supporting transformation and growth across all regions.
IDA Ireland supported the delivery of 973 investments over the period of the strategy for 2021 to 2024, 54% of which went to regional locations. Some 91 were in the west against a target of 76. The west has a significant ecosystem of well-established companies across life sciences, engineering, international financial services, content, consumer and business services and tech. IDA Ireland will seek to build on the strengths and competencies of the region and will continue to market it, targeting these sectors for investment opportunities.
Suitable property availability can play a key part in winning investments from both new clients and the existing client base. As part of the strategy for the period 2021 to 2024, 19 advance building solutions were progressed across 15 locations, including an advance building in Galway that is available for marketing. IDA Ireland's regional building programme for the period 2025 to 2029 will consist of 23 projects across 21 locations in eight regions, primarily involving manufacturing buildings.
This will include a building in Castlebar, which is at site selection stage, and an additional new building in Galway, subject to the successful marketing of the existing building and, of course, dependent on planning and procurement outcomes. The IDA is also partnering with local authorities to deliver advance planning permits in Ballinasloe, Mayo and Roscommon. As the Deputy will be aware, IDA Ireland’s strategy focuses on partnering with the existing FDI base to increase the competitiveness of their Irish operations, providing the foundation on which they can capture new growth opportunities, alongside attracting new investment to the regions.
Over 31,000 people are employed by IDA companies in the west of Ireland, as the Minister outlined. I welcome the fact that the ambition is going up, from 76 IDA-backed investments in the last plan to a target of 100 investments over the lifetime of this strategy. I welcome the publication of the strategy.
I attended the opening of the Medical Technology Ireland conference yesterday in Galway and saw for myself the talent, business and enterprise that was ongoing in the Galway medtech ecosphere. It is vital that we continue to support that. Over the last 20 or 30 years, we have built expertise, facilities and such a successful ecosystem, including relationships between the universities and businesses. Does the Minister have any plans to continue to support that and what will that support look like?
I do indeed. Our new life science strategy will be brought forward next year. That will be in line with the EU life science strategy and will aim to grow the 100,000 employees in the sector and the more than €100 billion in exports. Galway is very much front and centre of that, being a hub of medtech. About 70% of medtech companies are doing research and development and they are very good at the commercialisation of research in our tertiary education settings. One of the key areas of our new strategy is semiconductors, which is also important for the west. Obviously, Galway has been highlighted for its very significant and large-scale site, which will be very important for our next-generation semiconductor investment. The Deputy referenced the 31,000 people employed by IDA companies in the west, particularly in Galway, but there are an additional 25,000 jobs intrinsically linked to the IDA. If one looks at the current semiconductor companies and their supply chains, one of them has 900 SMEs intrinsically ingrained in its supply chain management process, so that will be a significant game-changer for Galway. It is very important that we get that site over the line. We are expecting to bring a memo to Cabinet on it in the next number of weeks, in consultation with our friends in the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. It is important that we get that on the road.
I really welcome that and I assure the Minister that, when he goes to Cabinet with that memo, he will have my full support. We must make sure that site is unlocked and the potential is realised. What is notable about that semiconductor site, adjacent to Oranmore, is its scale. It is going to be huge and the impact will secure the future of the west of Ireland for the next 20, 30 or 40 years. Something like the advance planning permit that the Minister mentioned in his reply is vital. I saw the success of Dexcom in Athenry. It had such a smooth run through the planning system. There was not one local objection and there was collegiality with Galway County Council. There was an understanding there. The council did its job and attached 58 conditions to the development but it got planning permission in eight weeks. That development will provide 1,000 jobs in Athenry, which is an absolutely huge investment.
The Minister's idea of preplanning permits so that we can have a general outline of the site's potential will be needed at the Oranmore site. Work should begin on that immediately, alongside the Minister's proposal for a €3.2 billion infrastructure package that will not only secure that site, but secure the future of Galway as well.
I understand that work is ongoing with the local authority in relation to that. My Department is very happy to support that planning permit, which will be very important for the sector. There is huge opportunity. We hear some negative things about the planning process but one thing that strikes me, as a former Minister of State with responsibility for planning, is that over 90% of planning decisions in this country do not go to appeal. A lot of good things happen but we do not hear about them. Dexcom is a prime example of that. I met representatives of the company recently and had a chat with them at an event in Galway involving the chamber of commerce. I also met the chief executive of Galway County Council, Liam Conneally, who outlined the ambition for County Galway. If I remember correctly from my days in the Custom House, his is the second biggest local authority in Ireland and has a huge amount of opportunity. The area has grid capacity and power, which we do not have in a lot of areas of the country. Galway has a lot of good cards and hopefully it will get to play them right over the next number of weeks.
13. Deputy Seán Fleming asked the Minister for Enterprise, Tourism and Employment the number of investments the IDA is targeting in the midlands under its current strategy; its performance in midlands investments under the previous strategy; and if he will make a statement on the matter. [50579/25]
I thank Deputy Fleming for his question on the midlands region. Regional development is a key focus in the programme for Government and is central to the work of my Department and its agencies. In that regard, IDA Ireland has reaffirmed its strong commitment to regional development as a core pillar of its 2025 to 2029 strategy, which we launched a number of months ago. This ambitious strategy aims to secure 550 foreign direct investment projects in rural and regional areas, accounting for 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 is targeting 40 client investments to the midlands region over the lifetime of the strategy.
Last year saw the conclusion of IDA Ireland’s 2021 to 2024 strategy, Driving Recovery and Sustainable Growth. Over the course of the strategy, IDA Ireland supported the delivery of 973 investments and creation of 76,790 jobs, or 121% and 153% of the respective targets. Some 54% of all investments were in regional locations outside Dublin. The investment target for the midlands over the period 2021 to 2024 was 25 investments and the total number of investments won for the region was 31. IDA’s goal for the coming years is to build on the strengths and competencies of the region, with a particular focus on high-value manufacturing, services, and research and innovation opportunities across established clusters in life sciences, technology and global business services. Emerging technology trends will continue to create new opportunities for the region in areas such as data analytics, smart manufacturing, cybersecurity and new approaches to working, such as co-working hubs.
As the Deputy will be aware, IDA Ireland’s strategy focuses on partnering with enterprises in the existing FDI base to retain and renew their Irish operations, alongside attracting new investment. The agency provides ongoing support to existing clients through investment in research and development and it will be very important in the upcoming budget to get the research and development value proposition correct. IDA Ireland also provides support for upskilling, talent development, digitalisation and sustainability in the FDI sector.
I thank the Minister for that overview of the midlands region but I am sure he will understand if I speak about Laois in particular. At the end of last year, there were 8,045 IDA-supported jobs in the midlands. Laois has 30% of the population of the midland counties but has only 1.8% of the IDA-supported jobs in the area. If one looks at the county-by-county list produced by the IDA, one sees that Laois has 145 IDA-supported jobs. It is a disgrace. I say that publicly. The total of 145 is, by a mile, the lowest of any county in the country even though the services in Laois are as good and as available as anywhere else.
I was very worried by the Minister's statement. I would ask him to introduce the IDA to County Laois and to arrange a meeting for the TDs and the chief executive of Laois County Council on this. I was especially worried when the Minister said that the IDA wanted to partner with existing FDI investments that were already up and running in the midlands region and nationwide because that means it would exclude Laois. The county does not have those investments. It is remarkable that the Laois figure is so low.
I will be categorical in stating that we are absolutely not excluding Laois. I was down there recently. The Leprino plant is an existing sector business under Enterprise Ireland that we are trying to find a replacement for through the FDI sector. It is a highly regulated plant that needs very significant support. As the Deputy will be aware, we are also working on an advance planning permit for Portlaoise. This is a very important investment which aims to get more high-quality stock into the market to assist County Laois.
As I pointed out, employment in the region increased by 26% over the last number of years. I am happy to arrange a meeting to work with Laois companies and to try to get more investment into the region but we have to be honest about the fact that we are operating in a very constrained space now. Over the next five years, relations with the US Administration will be very constrained. We are under significant pressure in terms of capital investment and we have very strong competitors. Singapore, for example, has very deep pockets. In terms of increases in capital allocations in the budget, we are looking at getting 6%, if we are lucky. That leaves us in a very tight space in the context of the work we do.
We just have to be very honest and we have to protect what we have. I absolutely want to grow Laois. I will be unequivocal about that and will work with Deputy Fleming in trying to assist through the IDA. We are committed on the capital side through our land bank there and the work we have to do on it.
I thank the Minister for that and, in particular, his commitment to help arrange a meeting between the TDs, the chief executive of Laois County Council and appropriate IDA officials - or Enterprise Ireland officials, while we are at it, because the figures for Enterprise Ireland in Laois are abysmally low as well. We are almost at the bottom.
I will make a few key points. The Minister mentioned Leprino. That company provides 135 jobs. We hope we can get a replacement. It is a high-tech business. That replacement, however, would only maintain the jobs already in the county. Portlaoise is ideally located. It has the best road network in the country. It is on the M7. Thirty-two trains leave Portlaoise every day for Dublin and Portarlington. We have the best train service of any provincial town in the country. As regards the housing in Portlaoise, thousands of houses have been built in Laois in recent years, more than in any other county per capita. We therefore have all the facilities that are required in Portlaoise. The IDA has a 30 ha site already in Portlaoise. We want to see an advance factory on that site as urgently as possible. If we have that, we might have a location to bring clients to.
I would absolutely support Deputy Fleming in what he set out, those 30 ha and the critical importance of an advance factory unit or a building solution unit because we know that it shortens lead time for investors. When you are bringing someone on site and you have a ready-made building, or the consent agreed for a building, it makes a difference. We will absolutely work with the Deputy on that. I know from my town, Mullingar, that it can be very difficult at times to secure good, high-quality investments from the IDA, and I feel the Deputy's pain in trying to get additional clients in, but I am absolutely here to work with him on that journey. As he points out, the Leprino site is very highly regulated. I have met with the IDA on a number of occasions in respect of it and met the management in Leprino to try to ensure that it is doing everything to get a good prospectus together in order that we can try to get a replacement into what is a very highly regulated site. I know Portlaoise and Laois very well. The housing increases there have been very significant. You can see as you drive through the town progress at every corner. The town's connectivity, road and rail, is exceptional. We are very happy to work with the Deputy on that.
16. Deputy Aindrias Moynihan asked the Minister for Enterprise, Tourism and Employment to consider supporting producers of pig products impacted by Chinese tariffs; and if he will make a statement on the matter. [50805/25]
China is the sixth largest destination for our agrifood exports, worth over €613 million, and pigmeat is a huge part of that trade, at €102 million last year. The imposition by China recently of what it considers anti-dumping tariffs will really challenge that trade. What efforts are being made to end those tariffs?
I thank Deputy Moynihan for his very important question. In June, the Government of China initiated an anti-dumping investigation on imports of pork and beef products from the European Union, and it has now announced provisional duties on imports of pork from the EU. The European Commission is in the process of assessing this announcement and will consider measures to protect EU industry and economic interests ahead of the deadline for the final determination of the Chinese investigation on 16 December.
I understand that the Department of Agriculture, Food and the Marine is aware of the preliminary findings of China's investigation and that the Department is confident that Ireland's exports of pork and pork by-products to China are fully compliant with World Trade Organization rules. The Department has encouraged the Irish industry to co-operate fully with the Chinese investigations. The Commission will be supported in its efforts to defend EU farmers and exporters on this matter.
My Department, through Enterprise Ireland, provides a range of funds and grants to agrifood businesses, including pig processors, to support export growth and capability development in the sector. Supports are available for capital investment, research and development, digitalisation, training, and sustainability initiatives. Bord Bia also runs promotional campaigns which aim to boost domestic and export demand.
In addition, my Department, together with the Department of Agriculture, Food and the Marine, co-funds the capital investment scheme for the marketing and processing of agricultural products, which is implemented by Enterprise Ireland. This scheme is targeted at businesses in the meat and dairy sectors to support them to expand and diversify and to increase sales of higher value-added products in the global marketplace. Thirty-four projects have been supported, with total public and private investment exceeding €420 million. This investment helps future-proof the sector, sustain jobs and enhance export potential.
These tariffs are a huge burden on the export of pig products to China. Two obvious supports are needed: first, the ending of the tariff and allowing free trade and, second, alternative markets. It is reasonable to expect that China will build its own pigmeat businesses and will be able to satisfy its own market more in the years ahead.
What particular efforts are being made to find alternative markets for Irish pig product across any other parts of the globe, whether South America, North America or wherever else?
As the Deputy knows, the Minister, Deputy Burke, launched the Government's Action Plan on Market Diversification recently. It contains important actions aimed at supporting export-orientated sectors, including the agrifood sector. This focus on market diversification for the sector also aligns with the objectives of the Food Vision 2030 strategy, which is led by the Department of Agriculture, Food and the Marine. The action plan sets out a path to support Ireland's businesses large and small and to adapt to the global trading environment by striking out into new and diverse markets, deepening their engagement in existing markets and expanding where possible and where opportunities exist. As a global and open trading economy deeply connected into international supply chains, the action plan also serves to mitigate the current risks and bolster our economic resilience. Of the grants and schemes that are available, I want to talk about two in particular. The market research grant provides up to €35,000 to help companies assess the impact of tariffs, gain market insights and develop mitigation strategies even in markets where they already operate. The second piece is the new markets validation grant, offering up to €150,000 to support the development of market entry strategies into new markets and new products.
Thank you, Minister. We will get you back in.
To return to the earlier question, this relates to the efforts to end the tariff and to reopen the opportunity for trade. I understand this investigation has been ongoing for some time, with the expectation of an outcome later this year, or possibly by the end of the year. Is there any evidence emerging of dumping going on? Where do things stand at the moment on this? I know that it was raised by the agriculture Minister at the recent AGRIFISH meeting as well with his EU colleagues. Is there any evidence, or is there a risk, that this tariff could continue long-term, or what efforts are being made to ensure that it would be ended?
As I said, the Department has encouraged the Irish industry to co-operate fully with the Chinese investigations, and the Commission will support its efforts to defend EU farmers and exporters on the matter. I am cognisant of the fact that the Minister, Deputy Burke, has done a huge amount in terms of particular sectors being able to take shocks like that, having that resilience in place. That is what the action plan on competitiveness and market diversification is all about. As a Government, we are mindful and cognisant of that, looking to other markets and trying to ensure that we future-proof not just our pig sector but all agrifood sectors that face tariffs, potentially. I would like us to await the outcome of that investigation, which is due to be published on 16 December.
15. Deputy John Clendennen asked the Minister for Enterprise, Tourism and Employment to provide an update on the steps being taken to help reduce the cost of doing business; and if he will make a statement on the matter. [50598/25]
Apologies for my punctuality.
I acknowledge the work the Minister has done in relation to small businesses, especially the establishment of the small enterprise unit within his Department and the National Enterprise Hub.
I ask the Minister to provide an update on the steps he is taking to reduce the cost of business.
I thank Deputy Clendennen. The Government recognises that the cost of doing business has been an issue for firms in recent years arising from wider inflationary trends, including energy costs. It is important to note that costs for firms, as measured through the CSO’s wholesale price index, are declining and are down 3% in the 12 months to August 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, both commitments in the programme for Government. The focus of the action plan on competitiveness and productivity is action that can be taken to strengthen Irish competitiveness and productivity, which in turn will lead to improvements in our economic performance. The development of the action plan was informed by extensive consultation across government with external stakeholders. My Department held a series of bilateral engagements with other Departments in the areas of infrastructure, housing and research and innovation. A core theme of the plan is regulating for growth and controlling costs with 18 actions, including five priority actions, focused on addressing this key issue. Key actions include better regulation, which will decrease regulatory burdens across business, address high legal costs and improve competition in our markets.
Complementary to the action plan, the cost of business advisory forum delivers on the commitment to support small businesses, enterprises and industries across a number of sectors. The forum's key objective is to examine and identify the concerns of the enterprise sector around the impact of the rising costs of doing business by creating a structured space where business owners and representative bodies can speak directly to decision-makers about the real-world impact of regulations, fees and operational challenges. The forum has already met a number of times on energy costs, security of supply and insurance costs. The forum will also focus on other cost driver topics, with each meeting including relevant regulators and agencies to ensure actionable outcomes. The findings will inform a report and set of recommendations to Government to take immediate action to address these short-term issues that merit a changed approach for business owners.
I thank the Minister. I welcome the cost of business advisory forum. Over the summer, I conducted a survey with over 600 respondents. A key finding was that over two thirds of SMEs that engaged in the survey were uncertain about the future and lacked the confidence we need to ensure they have. Other key findings were around easing the cost of labour pressure, cutting energy costs, tackling insurance reform and reducing the tax burden. When it comes to competitiveness in particular, local enterprise offices have a greater role to play. I ask the Minister to look at a review of the role local enterprise offices can play. More often than not, small businesses go to local enterprise offices, are offered mentoring and so on but when they want a small few euro to expand their business, considering the pressures of operational costs are too much, they are ineligible for grants. I ask the Minister to consider broadening grant eligibility to ensure businesses can continue to progress, create further employment and protect jobs.
Deputy Clendennen has been a firm advocate for small family businesses. His voice has been very strong in that regard. We know many of those operate around the kitchen table; they do not have a finance or HR director. They employ two thirds of all people in our economy. That is why we have worked very hard to reduce the red tape in LEOs. We set about working through the centre of excellence in Enterprise Ireland, reducing the administrative burden and number of questions asked for a number of these supports. We reduced questions by 47% across a number of grant forms. We will continue at pace through our simpler, lighter, faster approach, reflecting that the most valuable resource businesses have is their time. We have increased the output of the national enterprise hub from 180 supports to 250 across 32 Government agencies and Departments and with operators on the other end of the phone. The hub had over 7,000 individual inquiries in August alone. Those are leads on the phone, following up on supporting businesses. We have also worked with Enterprise Ireland, reducing the number of questions and red tape, and interoperability of some of those applications where the same information has been furnished previously.
When it comes to protecting jobs, I ask the Minister to strongly consider, along with his Cabinet colleagues, introducing the 9% VAT rate for the hospitality sector in the upcoming budget. The Minister spoke about the kitchen tables to boardroom tables where decisions were made. Small businesses need help. A VAT rate of 9% is an important stimulus in that regard. To look at the figures, there are 20,000 companies with 200,000 employees. Of those companies, 76% have fewer than ten employees and another 20% have fewer than 50. This will target over 95% of businesses in every town and village, ensuring economic and social well-being and community benefit, whether through the coffee shop, restaurant or other small businesses. I urge the Minister and his colleagues to ensure the 9% VAT rate is part of budget 2026.
I thank the Deputy for his strong support of the 9% VAT proposal. I know as tourism Minister as well that the key link in our identity is the authentic offering we have through our independent businesses like small coffee shops and restaurants. That will be key to the Government's response. We know the pressure they are under. There are over 240,000 jobs in regional locations and an €8 billion sector that we need to sustain. That will benefit everyone because the more activity there is, the more the money flowing into businesses goes out into the community. That is where people invest their money because they are a key part of the community. We will bring forward our tourism policy next month, which will look at how to expand Fáilte Ireland's remit to restaurants, helping them to develop their business models, help with costs, get them on board with digitalisation in terms of sustainability grants, and enhance their capacity. Tourism is keenly linked with our SMEs. They go hand in glove. They need to grow together. That is why having tourism at the heart of the Department of enterprise is important.
The work the Deputy did engaging with businesses over the past number of weeks is commendable and will form part of discussions as we approach budget 2026. I look forward to the Ministers, Deputies Donohoe and Chambers, having a strong enterprise budget. This is budget No. 1 of the new Government. It needs to be an enterprise budget focused on sustaining job growth, keeping 2.81 million people employed - a record in our country - and giving everyone the key opportunity in life of a job.
18. Deputy Catherine Connolly asked the Minister for Enterprise, Tourism and Employment the number and value of dual-use export licence applications, in respect of end-users in Israel, approved by his Department by quarter to date in 2025; the number refused in each quarter to date in 2025; and if he will make a statement on the matter. [50786/25]
I wish Deputy Connolly well in her campaign in the weeks ahead. She is a brave lady.
As the national competent authority for export controls, my responsibilities centre around the control of exports of dual-use and military items under EU and national legislation. These controls are administered by the Department in accordance with Regulation (EU) 2021/821 of the European Parliament and of the Council setting up a European Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items. The primary purpose of export controls is not to block trade or exports but to enable the free movement of legitimate goods while ensuring that certain sensitive categories are subject to appropriate regulation. These controls are designed to manage risk, uphold international peace and security and ensure Ireland’s compliance with its international obligations.
To date in 2025, a total of nine individual dual-use licences have been issued in respect of end users in Israel. Four were issued in quarter 1 with a maximum value of €797,000. In quarter 2, three were issued with a maximum value of €93,000. To date in quarter 3, two licences have been issued with a maximum value of €172,000. There has been one refusal to date in 2025 in respect of an end user in Israel, which was refused in quarter 1. The bulk of dual-use exports from Ireland, including those to Israel, are mainstream business ICT products, both hardware and software - networking, data storage and cybersecurity. They are categorised as dual-use items because they incorporate strong encryption for ICT security purposes.
I thank the Minister of State for her good wishes.
Exports of dual-use goods have increased phenomenally, which might be good or bad depending on the oversight arrangements we have. In 2023, the value of dual-use exports to Israel spiked to nearly seven times what it was in the previous year. It came down slightly but remained high in 2024. The value of dual-use goods exported in 2022 was €10.7 million. In 2023, as I indicated, it was €70.4 million, and, in 2024, it was €64.3 million. On the figures the Minister of State gave - I do not have the reply in front of me - there seems to be a significant reduction in that figure, which is welcome in a sense. I will look at the figures carefully.
The Minister of State said one application was refused. Will she clarify, as I did not quite catch it, the basis on which it was refused? Respect for human rights and international humanitarian law in the destination country is one of the criteria - I will come back to the others - that were spelled out by the former Minister, Simon Coveney.
I do not have exact details on the reasons the application was refused. I will look for clarity on that and furnish the Deputy with the details. There is extensive engagement between my officials and exporters should any questions or concerns arise regarding any application for any destination, including Israel. If, after engagement, there are any outstanding concerns that the goods being exported will not be used for the stated end use or by the specified end user, as detailed in the application, or if the exporter does not provide enough information on the intended end use for my officials to make an informed decision, the application for a licence is denied. In applying export controls in a robust and transparent way, my Department ensures legitimate business transactions by reputable Irish traders are not damaged in any way, while ensuring exports of controlled goods are thoroughly risk assessed in the context of ongoing conflicts, diversion of goods and humanitarian considerations.
I respect the Minister of State's bona fides and I know she will get back to me. In 2023, our exports of dual-use goods to Israel spiked by seven times, at a time when, in my opinion, genocide was happening and has continued to unfold before our eyes. Back in February 2024, the then Minister, Simon Coveney, said the Department of trade and the Department of Foreign Affairs "review all dual-use export licence applications against the eight assessment criteria set out in [the relevant] EU Council Common Position". These include respect for human rights and international humanitarian law, and the risk of internal repression, in the country of final destination. Certainly, Israel does not comply with that. Other criteria include the internal situation in the country of final destination with respect to tensions or armed conflicts, risks posed to the territory of neighbouring countries and risk of diversion of goods for undesirable uses. They are four of the eight criteria laid down under the EU policy. Can the Minister of State tell me more specifically who carried out the analysis of the licences given and where I can see that analysis?
I reiterate that I will ask the Department, insofar as it can, to furnish the Deputy with much greater detail on the refusal I indicated and the reasons for it. My officials seek real-time geopolitical observations from the Department of foreign affairs in respect of all applications, and those views inform the final decision to grant or deny a licence. The assessment process is rigorous. The officials carry out a series of checks to ensure, insofar as they can, that the item to be exported will be used by the stated end user for the stated end purpose and will not be used or diverted for any other purpose. Ireland remains firmly committed to supporting open, free and responsible trade within a multilateral rules-based international system while ensuring global security and humanitarian concerns are not compromised. Strong export controls are essential to preventing the proliferation of weapons of mass destruction, protecting regional security and stability, combating terrorism and protecting human rights.
I take the opportunity to wish Deputy Connolly the very best of luck in her campaign in the next couple of weeks. I wish her very well.
Go raibh maith agat.
