Albert Dolan
Ceist:142. Deputy Albert Dolan asked the Minister for Enterprise, Tourism and Employment if he is exploring new measures to assist with the cost of doing business; and if he will make a statement on the matter. [45347/26]
Ceisteanna Eile - Other Questions
Business Supports
Essentially, what I am asking about is the cost of doing business. With rates, insurance, electricity and labour costs, the costs of doing business over the past few years have soared and while the Government has, at times, tried to intervene and support people, I want to know what plans the Minister has to further support businesses?
I thank the Deputy for his question.
The Government continues to actively monitor cost developments across all sectors of the economy.
The small business unit was established in the Department of Enterprise, Tourism and Employment last year, fulfilling a programme for Government commitment. There are a number of tools this unit and the Department will use to enable its work, including rigorous implementation of the SME test. The SME test tasks policy makers to consider the impact that any new policy, legislation or regulation may have on SMEs and to mitigate those impacts, where appropriate.
Access to grants and support programmes has been simplified through the launch of the national enterprise hub. This is hosted and operated by Enterprise Ireland and has over 250 different supports for businesses from 32 Departments and agencies. Since its launch in 2024, the national enterprise hub has handled over 15,000 inquiries. Monthly volumes have grown steadily, with over 940 queries received in May alone, representing a 33% increase on the same period last year. The average response time has consistently remained within 24 hours. The hub's website has also attracted significant interest, with over 300,000 visits since its establishment.
The small business unit has responsibility for the local enterprise offices and we are ensuring the LEOs are properly resourced to help small businesses. A review of the full suite of LEO supports is currently under way, while the Department and Enterprise Ireland are completing a review of applications for all LEO grants to reduce the number of questions and simplify requirements.
The cost of doing business advisory forum was established in June 2025 as part of the programme for Government commitment to ensure we reduce business costs and ease regulatory burdens. This forum serves as a structured platform to bring together enterprise representative bodies and a number of sectors across Departments, State agencies and regulators.
Go raibh maith agat a Aire Stáit. I appreciate the update and the work that is ongoing. A key area I want to highlight, and I know the Minister of State is hearing this regularly, is energy costs. Energy remains one of the largest overheads for SMEs, particular in the hospitality sector, the manufacturing sector and the agribusiness sector. Small businesses do not have the same purchasing power that larger entities or corporations might have. It might be feasible for a large entity to buy the energy coming from some renewable energy development but this is not feasible for small businesses and small manufacturing entities. We have so much talent in our communities. I think of all the great businesses in Galway East that have massive energy costs but do not have the scale to purchase power at that level. What is the Minister of State doing specifically to support further solar grants and energy efficiency and reduce long-term energy costs? The price of electricity is simply too high.
I thank Deputy Dolan for his question. I know he has been big advocate of ensuring our energy system is supported and remains resilient and sustainable. Across government, through the Department of climate and energy, we are driving the delivery of renewable energy and solar PV. Through SEAI grants we have seen a huge uptake in the number of businesses that have adopted new technology in regard to solar PV and energy efficiency measures, which is very important. The SEAI does wonderful work to engage with businesses throughout the country.
The cost of doing business advisory forum brings together decision-makers, enterprises and businesses, regulators and key agencies. We see work undertaken by the Commission for Regulation of Utilities, CRU, on how we structure the cost of energy in terms of transparency on what businesses pay for. We want to go further in how we regulate that market.
The Government has to go further, in particular for small and medium enterprises that do not have the scale to acquire electricity at a discounted rate. This is who we have to consider and support.
I want to move on to another cost of business issue which is constantly coming up for me, in particular in recent weeks. It is with regard to rates. Commercial rates are increasingly becoming a frustration for businesses. I understand that rates were not revalued for a long time but the revaluation has led to significant costs imposed on businesses. Sometimes there is a value question. The businesses pay rates but they could be in a rural location and they just are not seeing the value of what they are paying. There has to be better engagement from local authorities on this. Has the Minister of State assessed the impact that increased rates costs are having on small and medium enterprises? What does he plan to do about this cost?
The challenges around rates are always contentious for small businesses and retailers in every town and city. It is not a function of the Department of enterprise to control that. Rates are a very important revenue stream for local authorities and central to delivering the required services. Deputy Dolan knows, as a former councillor, how important it is and how contentious it is for executive management to ensure it has this income stream. However, we do need to make better utilisation of how rates are proportionately absorbed by a lot of small businesses. I will undertake a review of the local enterprise offices to ensure there is more structure in place. We see rates abatement for many new businesses that may establish in towns, whereby a percentage of the full rate is forgone in the early years. That is very important. Rates are a devolved function of councillors and local government but we need to modernise them in the current era and see how we can support businesses in future.
Company Law
Shay Brennan
Ceist:143. Deputy Shay Brennan asked the Minister for Enterprise, Tourism and Employment to outline any assessment his Department has undertaken of the need to update company law to facilitate the greater use of distributed ledger technology for the tokenisation of funds set up as Irish companies; and if he will make a statement on the matter. [45470/26]
Ireland's funds industry manages trillions in assets and supports over 20,000 jobs. It is one of our most significant internationally traded sectors. Globally this sector is now moving rapidly towards tokenisation and the use of distributed ledger technology. Will the Minister advise what assessment the Department has undertaken of whether our company law framework, including the Companies Act 2014, ICAP and the Investment Limited Partnerships Act are fit for purpose to support this transformation?
I thank Deputy Brennan for his question on a very important sector for the Irish economy. Tokenisation, the process whereby an underlying asset or pool of assets, tangible or intangible, is converted into digital tokens that act as its proxy, could fundamentally reform how capital markets operate, enabling real-time trades, increasing transparency and liquidity, expediting clearing and ultimately providing for atomic settlement.
As the Deputy is aware, the Minister for Finance, who has lead policy responsibility for this area, published a funds sector 2030 report in October 2024. The report, titled Funds Sector 2030: A Framework for Open, Resilient and Developing Markets, is a wide-ranging review of the funds and asset management sector. The report included a recommendation that the industry continue to engage with the Central Bank of Ireland and the Department of Finance, as necessary, "with a view to mapping out a pathway for adoption of tokenisation".
I am advised that the Department of Finance fully supports and encourages the work that industry has undertaken thus far to assess what can be done within the current legislative and regulatory frameworks. Officials from that Department are considering submissions from industry regarding proposed changes to the current legislative framework. This work is being done and led by that Department, and following this work my Department will examine any proposed legislative amendments to the Companies Act put forward by the Department of Finance, as is the current practice in the normal course of events. This is in tandem with other work involving negotiations by the Department of Finance as policy lead in this area, such as work at EU level involving financial services regulation. The Deputy may also be aware that, in line with recommendation 17 of the report, the Central Bank published a discussion paper on tokenisation last March, with submissions being invited by 5 June. I understand the intention now is for the Central Bank to publish a feedback statement following this consultation period.
I thank the Minister. He will appreciate there is an urgency about this issue. The core requirement from the funds industry is quite narrow. It is recognition that distributed ledger technology is a valid medium for share issuance for transfer, registration and record keeping. No radical change is being sought, just some targeted non-technology-focused amendments to key relevant Acts. Major international asset managers are already launching tokenised fund products, particularly in the money market funds where Ireland is Europe's leading domicile. Is the Department aware of what legislative changes need to be implemented and of the urgency with which clarity needs to be communicated to fund managers?
Is the Minister actively considering legislative changes at this time, and if so, over what timeframe?
I am very much aware of how important the funds sector is to our employment landscape. Over 60,000 jobs and, as the Deputy pointed out, trillions in assets are domiciled here. As I said, the Department of Finance has the lead policy responsibility for the area. Distributed ledger technology, as the Deputy pointed out, provides a game changer for the sector. It records transactions, and transactions that are recorded in multiple places at the same time. This can provide a huge opportunity for Ireland.
What is happening here now is that submissions have been sought. They have been coming into the Central Bank. The Department of Finance will communicate to our Department what changes are needed in the company law code, because our Department is responsible for this area. We will support the growth of the sector in that regard because we have seen how much it has contributed to our economy in terms of jobs and this being a highly regulated sector that has a pathway into the European market that is significant for Ireland. I can, therefore, assure the Deputy of my full attention to this matter.
The Minister will appreciate that the risk here is a straightforward competitiveness one. If competing jurisdictions provide clearer legal certainty first, the product development and the jobs that go with it will go elsewhere. The question is not whether tokenisation or distributed ledger technology will become a core component of the funds industry, but whether Ireland will be ready in time to maintain its leading global position in the funds sector.
Our reputation in financial services was largely built on anticipating market developments and rapidly adapting to them. Does the Minister accept that timely action on this issue is necessary and will he commit to engaging with industry stakeholders on specific legislative amendments that have been identified and other requirements that would support the industry?
I am constantly engaging with stakeholders. Indeed, I meet many of them during my weekly business with the Department. I have had some very exciting job announcements in the financial services sector and have discussed this issue in detail with it and in relation to the work the Department of Finance has undertaken. It has been present for some of those announcements, so we are very much aware of the opportunity here. Ireland will absolutely be at the forefront to grasp that opportunity with both hands.
I should also point out the highly skilled workforce we have and the capacity to ensure that grows is so important for the sector as well. We are well set, therefore, to grow it further. The IDA has a number of exciting companies growing in this space. There is also our own fintech sector with Fenergo and others that have grown exponentially in recent years. I assure the Deputy of my full attention, and I am working closely with the Department of Finance and the Central Bank on this issue.
Artificial Intelligence
Willie O'Dea
Ceist:144. Deputy Willie O'Dea asked the Minister for Enterprise, Tourism and Employment the way in which his Department is supporting businesses to adopt artificial intelligence into their day-to-day work; and if he will make a statement on the matter. [45350/26]
Artificial intelligence, AI, is one of the biggest economic opportunities facing Ireland over the next decade. It has the potential to transform productivity, innovation and competitiveness across every sector. What is the Government doing to position Ireland as a leader in AI adoption and development?
The Government recognises that the adoption of AI and digital technologies presents a significant opportunity for Irish businesses to enhance productivity, competitiveness and innovation across all sectors of the economy. The recently published national digital and AI strategy, Digital Ireland - Connecting our People, Securing our Future, sets out a clear roadmap for Ireland’s digital and AI adoption and development in the years ahead.
One of the key priorities in the strategy is fast-tracking enterprise technology adoption, particularly in SMEs, to boost productivity and competitiveness. Under the AI - Good for Business initiative, a national AI and digital awareness roadshow has been established in tandem with local enterprise office, LEO, regions. The roadshow, which is already under way, helps SMEs to understand the practical benefits of AI and digital tools, showcases real SME success stories, and highlights the LEO supports available. Having participated in one of these roadshows in Galway in April, it is very encouraging to see the high levels of interest and uptake of AI by SMEs.
These supports include the Grow Digital voucher, which offers up to €5,000 to small businesses with under 50 employees to adopt digital tools like ecommerce, AI, cybersecurity, and website development. The digital for business consultancy scheme is a free service which connects businesses with expert advisers to assess needs and develop tailored plans. The European digital innovation hubs, EDIHs, in Dublin, Cork, Mullingar and Sligo offer hands-on support to help SMEs to understand, test and adopt advanced technologies. My Department recently allocated an additional €23 million in funding for these EDIHs to support SMEs in their uptake of AI and other cutting-edge technologies.
We are building on existing supports and developing a targeted sectoral strategy to develop and drive AI adoption. Enterprise Ireland will also appoint an AI sector champion to spotlight AI opportunities, and the charter for digital inclusion will also encourage larger businesses to support smaller ones in adopting digital tools.
I am firmly of the opinion that the countries that adopt AI responsibly will yield the greatest benefits over the next generation. We can be economic leaders through AI and we can show what a society is capable of. A part of where this conversation has to be is about the societal benefits that can come from AI-gained efficiencies.
With those efficiencies, however, come a lot of concerns. We have to address the challenges that there will be around job displacement and workforce skills and ensure that people can upskill, develop and wield the power that AI will give them as individuals. How is the Government going to ensure that Ireland will not simply be depending on other countries' AI but that we have some sort of AI independence? The Minister of State will have seen over the weekend that access to Fable and Mythos outside the US was shut down. How would we respond if we were dependent on AI services and they got shut down?
I thank the Deputy very much for his questions. I feel that one of the biggest barriers to AI adoption is not the reluctance to adopt the technology but is around awareness and understanding. This is why it is important that we get businesses engaged early in respect of how it can enhance their effectiveness, efficiencies and productivity. That is why we have the Grow Digital voucher, ensuring that experts can create digital plans and allow the technology to be embedded in a system. We are working on the AI observatory to make Ireland an international hub for AI adoption. That is very much part of the whole AI plan, and we really want to see SMEs as a success story in respect of the adoption of AI.
I would say that we need to be careful. I welcome the Grow Digital vouchers, but this would lead to businesses depending on those vouchers to get the expertise and skills to be talented with AI. The whole idea of AI is that it is going to be usable by anybody for anybody with their own critical thinking and their own ability. It is going to be about allowing people to gain the skillsets and the critical thinking capacity to use AI. I would be careful not to fund so many vouchers that people become dependent on them.
Another point is that the benefits of AI need to be felt and spread right across the country. From the point of view of the Government particularly, and this is something I have called for before, an AI hub for the west of Ireland is needed. We have an incredible medical technology and medical device sector in Galway. The Minister of State knows the huge investment Dexcom has made in Athenry. I would love to see a med tech AI hub in Galway that works with these companies to deliver next-generation technologies that can impact the globe.
I would certainly like to see more investment and I support the call made by the Deputy for having more centres of excellence in the west of Ireland around AI adoption. It is part of the Government’s policy for balanced regional development. I know the project in Dexcom, in the Deputy's area, is significant and needs to be supported.
The new AI office will ensure that innovation is very much balanced and that safeguards are put in place. We are very much focused on the digital skills and talent area. We have one of the highest graduate levels in science, technology, engineering and maths, STEM, and we need to capitalise on this in respect of how AI is adopted.
I take the Deputy's point that early planning is very important for businesses, and that is why we need advice from experts to develop the associated skill set but also the plan for how to adopt the technology, having regard to how important it will be for businesses.
Question No. 145 taken with Written Answers.
Foreign Direct Investment
Tony McCormack
Ceist:146. Deputy Tony McCormack asked the Minister for Enterprise, Tourism and Employment the measures being taken to improve Ireland's competitiveness in order to attract and retain foreign direct investment, FDI; and if he will make a statement on the matter. [45439/26]
Tom Brabazon
Ceist:149. Deputy Tom Brabazon asked the Minister for Enterprise, Tourism and Employment the action he is taking to increases Ireland's attractiveness as a destination for FDI; and if he will make a statement on the matter. [45635/26]
Competitiveness is so important to Ireland as an open market economy. What measures have been taken by the Department to improve Ireland's competitiveness to attract and retain FDI? Will the Minister of State make a statement on it?
I propose to take Questions Nos. 146 and 149 together.
FDI is a key element of our economic strategy, with investments by IDA Ireland client companies consistently generating high-skilled jobs nationwide. The Department works closely with IDA Ireland and other stakeholders to ensure a strong pipeline of FDI into Ireland.
In light of the rapidly evolving global landscape and given the challenging international economic and trading environment, the Government is implementing a whole-of-government response to the challenges Ireland is facing, as set out in the Action Plan for Competitiveness and Productivity. The action plan strengthens Ireland's attractiveness for FDI by improving the business environment through measures on innovation, skills, infrastructure and cost competitiveness, ensuring Ireland remains a stable, competitive and future-ready location for global investors.
Complementing this approach is IDA Ireland's own strategy, Adapt Intelligently: A Strategy for Sustainable Growth and Innovation 2025–29. This strategy identifies clear opportunities for Ireland to win investment in key growth areas such as digitalisation and artificial intelligence, semiconductors, health and sustainability. This strategy reaffirms IDA Ireland's focus on maximising opportunities for existing and new clients to invest in regional locations. Building on the excellent performance over the previous strategy, IDA Ireland is targeting 55% of investments in regional locations over the five years of the current strategy.
Last year the Department launched Silicon Island: Ireland's National Semiconductor Strategy, which aims to make Ireland a global leader in semiconductors. The strategy promotes national policies and investments to further stimulate chip design and manufacturing capabilities. Later this year, we will also launch a national life sciences strategy, reflecting the level of importance of this sector to both foreign and domestic companies and the opportunities for its further development.
Investment remains strong. A total of 323 investments were secured by IDA Ireland during 2025, representing a 38% increase on the previous year and the highest number of projects on record secured by the agency. Employment in IDA Ireland client companies increased by 1.5% year on year in 2025 to 312,400. The Government is fully aware of the competitiveness challenges this country faces as we continue to compete for FDI. We are taking the necessary steps to position Ireland for the future and we will continue to place cost, planning, energy and research and development at the centre of forward-looking policymaking.
Competitiveness is a matter for all of Europe. The Government announced last week our Presidency priorities, which are centred on three key areas: competitiveness, values and security. My colleague, the Minister, Deputy Burke, will assume the chair of the EU Competitiveness Council in July and we will have an opportunity then to progress really important files to align with European ambition in this regard.
I welcome the Government's continued focus on competitiveness and attracting investment through IDA Ireland. It is clear that the international trading environment has become more challenging in recent years, with increasing trade barriers and growing competition for investment globally. Given Ireland's reliance on international trade and FDI, will the Minister of State outline the key actions being taken across government to strengthen our competitiveness? In particular, what progress has been made in areas such as infrastructure delivery, skills development and regulatory efficiency, which are increasingly important factors for companies considering Ireland as a location for investment?
As sure as day follows night, and as we see in the economy, after every boom there is a recession. Things are getting tight at the moment. We are no longer in a position of comfort. Companies from other parts of the world will be looking at Ireland from a fiscal point of view, so what is the Minister of State's Department doing to make sure we remain as competitive as possible?
FDI decisions are going to be driven by talent, innovation and, ultimately, infrastructure. When I say infrastructure, I am talking about public transport, housing and everything that goes into the quality of life of the employee because, ultimately, companies are going to locate where the talent wants to be.
In Galway, as I have mentioned previously, we have a significant medtech sector. It is absolutely incredible what has happened there over the past 30 years. That does not just happen. We need to see a continued push to drive more investment into Galway and into our medtech sector. Beside the site where Dexcom Ireland has been developed are additional IDA lands that are prime for development for more jobs for east Galway. That is what I push for here this evening.
I thank the Deputies for their questions. I absolutely agree that competitiveness is not just for today; it is about preparing for the next decade. That is really important. That is why the Government is developing Enterprise 2035, which will be a long-term strategy focused on enterprise growth while also ensuring we have widespread job creation throughout the regions. It will be focused on skills, lifelong learning, innovation, access to finance, digital and green transitions, and building resilience against the uncertainty within our global economy. We have seen from global shocks how exposed we are. We have had the trade and tariff wars. We have had the challenge of supply chain disruption with the Middle East. I contend, in the knowledge that I am speaking to two rural TDs, that we are very much focused on ensuring the Government is investing but that investment benefits every region in the country. That is why over 57% of all new investments were based in regional Ireland. That is not accidental; that is a result of Government policy.
It is also about targeting regional property development and the next-generation sites to ensure they are serviced and brought forward, but also that we have strategic planning from IDA Ireland and that IDA Ireland is considering all the four corners and not just at our main cities and thoroughfares. This is about ensuring the high-value sectors Deputy Dolan talked about and the life sciences and semiconductor sectors, which create high-quality jobs and that anchor within regions, bring considerable employment but also act as a catalyst for indigenous companies to service the big multinationals. That is very important. We need to continue to work across government to make sure that happens.
I welcome the strong performance in attracting investment into Ireland and the commitment to balanced regional development. As we look at the next phase of growth, it is important that counties such as Offaly and the wider midlands continue to benefit from new investment opportunities. Will the Minister provide an update on the measures being taken to support regional locations in competing for future investment? We are grateful in Offaly, particularly in Tullamore, for the investment by IDA Ireland in lands for a new IDA Ireland park. What progress has been made in getting the infrastructure into this park and what progress has been made in strengthening regional enterprise infrastructure, skills provision and site development so areas such as the midlands will be well positioned to secure a greater share of future jobs and investment?
I welcome the Minister of State's mention of the next-generation sites. As he knows, outside Oranmore there is potential for one of the country's most strategic sites. It was reported in the Business Post over a year ago that the Minister, Deputy Burke, was to bring a memo to the Cabinet about potential investment in Galway to upgrade the infrastructure on Mutton Island and wastewater infrastructure, and to provide a new link off the motorway and a new rail stop at the site.
Can I have an update? Where is that currently? Did that memo ever come to Cabinet? Will the Minister be able to provide an update about the prospects of a company selecting that site for a chip fabrication plant or whatever the preferred option is?
I again thank the Deputies for their questions and their support for continued investment in the regions of Offaly and Galway. The Minister is continuing to progress the next generation sites. That is important. He is progressing the west, which is important, initially. I hope we will have an announcement shortly in that regard. It is important that what we announce is serviced. There is a plan to ensure the site can be energised and there is access to utilities, critical services, etc. At Government level, that memo has been brought and approved, but not yet announced.
With regard to regional balance, the action plan for competitive productivity is important for how we continue to deliver the skills and talent within the regions. Offaly has had recent success with Bord na Móna's collaboration with Amazon. It is important to build on tech, data centres and everything that goes with them for job creation. It is also important that the infrastructure and planning continue to evolve to meet the needs of the local regions and areas. There are various strategies that the Government is currently working on and that will be brought forward, such as the new national semiconductor strategy and the new life science strategy. There will also be investment in infrastructure through the national development plan. These are all important competitive measures that will set Ireland apart for future investments in our regions. We are competing globally. There is no denying that it has been a challenging period to attract more international companies here to Ireland. IDA Ireland is doing a great job and the Minister, Deputy Burke, is actively working with the agency on a day-to-day basis.
Departmental Strategies
Paula Butterly
Ceist:147. Deputy Paula Butterly asked the Minister for Enterprise, Tourism and Employment to provide an update on the national tourism food strategy, in regard to timelines and funding which will enhance the tourism sector; and if he will make a statement on the matter. [45619/26]
Will the Minister provide an update on the national tourism strategy, particularly with regard to the timelines and funding that will be required to enhance our food tourism sector?
I thank the Deputy for a very important question relating to tourism, which is our largest indigenous sector. The programme for Government includes a clear commitment to support and expand food and drink tourism, reflecting its importance in shaping visitor experiences. Food and beverage accounts for approximately 34% of all visitor expenditure. A New Era for Irish Tourism, the Government's national tourism policy, focuses on sustainable development of our tourism sector and increasing the regional and seasonal spread of tourism activity. It includes a commitment to develop a new national culinary strategy to strengthen the quality and reputation of Ireland's food offering. This strategy will build on and complement destination experience development plans that place a strong emphasis on food at a local level. It will support the strengthening and promotion of authentic, sustainable experiences alongside the development of food trails and festivals that drive demand and help sustain over 46,000 tourism-related businesses. These objectives also clearly align with wider Government measures to support competitiveness, which include the reduction in VAT to 9% for food and catering services from next month.
Delivering on these commitments requires strong co-ordination and a clear focus on outcomes. In this context, I established a tourism policy oversight group, which will meet for the first time on 8 July. This group will bring together representation across government, agencies, local authorities and industry stakeholders to oversee, monitor and support the delivery of the 71 policy objectives. This group will be supported by targeted delivery streams, including a dedicated culinary stream, to ensure alignment across national and local government. All the key sectors will provide strategic oversight of the strategy's development and delivery.
Tourism Ireland is implementing a refreshed culinary tourism approach overseas, addressing outdated perceptions of Irish food and showcasing the quality, freshness and diversity of food and drink across the island as a key driver of destination choice, particularly among European visitors.
It is great that 34% of tourism funding is directed towards food and drink, but that also highlights the scope we have to develop it even further. As a result, I welcome this strategy. However, a strategy is only as good as its implementation. As the Minister saw last Monday when he came to launch the Louth tourism strategy, we in County Louth have so much to offer. People can have oysters in Carlingford. They can go to The Glyde Inn in Annagassan and have all the fish delicacies we have to offer in County Louth. The best fish and chips are up in Clogherhead, while the best steak is over at the Monasterboice Inn, formerly known as Donegan's. We have all of that. We need to build the food strategy, along with the culture and heritage of the county, as do many towns and villages across the country at a regional level. How will the Minister develop that in practical terms?
Critically, as the Deputy pointed out, the Louth strategy for tourism up to 2031 has key performance indicators, KPIs, to measure exactly the performance and ensure our objectives are realised. I took the view in our tourism plan that if it cannot be measured, it cannot be managed. That is why we have 71 objectives with clear KPIs attached to each. That is why Tourism Ireland has approximately €71 million for 2026 for marketing, and the culinary industry is key to that. We will develop our culinary strategy over this year. It will have a job of work in advancing the proposition that so many of our businesses have.
As the Deputy rightly pointed out, there is a vineyard in Louth. There are oysters. There is an incredible offering from the distillery. There are so many attractions to bring people to County Louth. It will be front and centre and will absorb huge resources. We will put in €400 million over the next five years. The culinary industry is unique, genuine and authentic food production that will put us in a good space to attract visitors.
The Minister is exactly right. We have food and drink of the highest quality produced at a local level by great producers in County Louth. The core element to producing this food and drink is our farmers. Our farmers are struggling at the moment, particularly those in the tillage sector. I call on the Minister to co-ordinate and co-operate with the Minister for agriculture to ensure that from beginning to end, the chain is able to sustain a long-term food tourism strategy in County Louth and across the country. Without a good, strong agricultural sector, we will not be in a position to continue to produce the high-quality food and drink that we can offer tourists in Ireland. They then go home to America, France, Italy, Japan or South Africa and talk about the wonders of Irish food and drink. As a result, we have a strong export sector.
I could not agree more with the Deputy and the proposals she is bringing forward. I look forward to working with her to grow our tourism sector. I particularly look forward to working with our businesses. There are 46,000 businesses across the country that provide a genuine, authentic céad míle fáilte. We will come forward in September or October with a number of supports, capital grants, for attractions and businesses to help them with digitalisation to ensure they can grasp the opportunity that is ahead. Many of our visitors now use generative AI to plan out their itineraries, book and research online.
I am working closely with the Minister for agriculture, Deputy Heydon, to ensure that farmers are supported. Right now, for every 200 litre fill of diesel, farmers get €55 to support them in the production of food. That is reducing the price of groceries on tables and reducing the cost of production, critically, for businesses. In budget 2027, we will provide further supports. We had the national economic dialogue, which included a breakout session on agriculture, as well as one on tourism, to discuss the challenges for all the sectoral interests.
Export Controls
Donnchadh Ó Laoghaire
Ceist:148. Deputy Donnchadh Ó Laoghaire asked the Minister for Enterprise, Tourism and Employment the reason his Department sanctioned the export of €20 million worth of dual-use technology to the Israel Defense Forces, IDF, and Israeli Ministry of Defense in 2024; and if he will make a statement on the matter. [45653/26]
There may have been other questions earlier on this topic. I am looking forward to hearing the Minister's answer. It is difficult to comprehend how during a genocide, licences were approved, in particular for 2024, for dual-use goods for which the end user was the IDF and the department of defence in Israel. The value was €20 million. It is quite extraordinary. It is difficult to understand how such applications could have been approved in the context of such appalling crimes against humanity.
They should not have been approved. I welcome that has now stopped, but we need answers about why they were approved.
First, there is no policy change in this area. My Department’s responsibilities centre around the control of exports of dual-use and military items under EU and national legislation. Controls on the export of dual-use items are administered by my Department in accordance with EU Regulation 2021/821 of the European Parliament and the Council setting up an EU regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items. The bulk of dual-use exports from Ireland, including those to end users in Israel, are mainstream business ICT products, both hardware and software. They are categorised as dual-use items as a consequence of the fact that they incorporate strong encryption for ICT security purposes. 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.
All export licence applications are considered by my officials in accordance with criteria set out in the relevant dual-use and military EU and national regulations and Ireland’s international obligations and responsibilities as members of non-proliferation regimes and export control arrangements. Each application is assessed individually by considering the nature of the items, the destination country, the identity of the end user and the intended use. Ireland’s decisions are guided by the EU position and its eight criteria, which include respect for human rights, international obligations, regional stability and risk of diversion to another end user or end use.
The risk profile of an application is impacted by current geopolitical factors, the end user, the items in question and their ability to be misused. This risk profile can change on a case-by-case basis. If an application is deemed high risk and the exporter is unable to provide strong assurances to mitigate the risks identified, the application will be denied. As each application is treated on a case-by case basis, the available verifiable information at the time and associated risk assessments can change from application to application.
The Minister said there is no change in policy. I find that hard to gather when for five years in a row licences were approved for significant sums of money and in the past two years, they have not been. I welcome that. The Minister said there has not been a policy change. I would say there has been and I welcome it. It is the right thing to do.
However, drilling into what the Minister said, the policy of the EU broadly speaking - appropriately - is that goods primarily used for civilian uses that could potentially be used for military uses, require a double check. They come back to the relevant agency in the state. That state then decides whether it is appropriate and whether the state is confident the end user will be civilian and will use it for a civilian purpose or for a military purpose. The end user here was the Israel Defense Forces, IDF, and the Israel Ministry of Defense in the context of tens of thousands of people, including tens of thousands of children, being killed. The Department was asked to sign off on this licence and it did. It did so three times to a value of €20 million in 2024. Why did it do so?
Thank you, Deputy.
It had all the information, unless the Minister can tell me otherwise and the Department did not have the information that it would end up in that place.
As I said, there has been no policy change. The law is clear in the Control of Exports Act 2023, as set out by these Houses of which the Deputy is a Member, and in our European obligations under the framework and the eight criteria that have been established.
Ireland has been firm and strong in recognising the State of Palestine. We have supported the people of Gaza through the United Nations Relief and Works Agency, UNRWA, the competent authority which provides aid. We strongly supported it when Commissioner Várhelyi tried to unilaterally withdraw key supports to vulnerable citizens. We joined the ICJ case with South Africa and have called out the genocide in Gaza. That is where we are clear. It is all about where the end user is and what the purpose is.
There has been no significant increase or decrease in applications being denied. The number of applications went down. That is not a change in policy by the Department. We do not control who comes to the Department seeking a licence. When the number of applications goes down, the value goes down. I assure the House there has been no change in policy whatsoever and no review has taken place either.
There has to be a review. We are talking about millions of euro worth of goods ending up in the hands of the IDF and the Ministry of Defense in Israel, while they kill tens of thousands of civilians. There should be a review. There absolutely should.
The Minister has talked around it. The Government has done things in relation to Palestine that we have welcomed and other things that did not go far enough compared with other European countries. The standard in Europe is undoubtedly low and Ireland is perhaps above that but looking beyond that internationally, it is not anything to shout about.
However, the fundamental point, which the Minister has not answered, is that the Department was given the opportunity to refuse those licences. These landed in the Department. The framework the European Union created ensures the decision comes back to the Department, which makes a determination about whether there is a risk of the goods ending up in military situations beyond civilian use. The Department seems to have been satisfied there was no problem. Surely, it would have had information about where it was going to end up.
Thank you, Deputy.
Why was it signed off? That is the key question, which the Minister has not answered.
Very clearly, it is because it is in compliance with the law and with the criteria set down by the EU. We do not assess applications on the basis of made-up criteria. The criteria are grounded in the EU framework, which has eight clear measures, and the Control of Exports Act set down by this House in 2023. As I said in my substantive response, we have to satisfy ourselves that the end user will not bring any unintended consequences and that citizens are not being harmed by its actions. That is what we have to do. The criteria are clear. The robust procedures we have in the Department for doing that are crystal clear.
Ireland has been at the forefront of the European Union in standing with the people of Gaza, in calling for the EU-Israel Association Agreement to be suspended - we were at the forefront of doing that - and supporting the people of Gaza financially. No country has called out as much as Ireland has and the Palestinian Authority recognises that clearly in all our meetings with it.
Question No. 149 taken with Question No. 146.
Artificial Intelligence
Aindrias Moynihan
Ceist:150. Deputy Aindrias Moynihan asked the Minister for Enterprise, Tourism and Employment to provide an update on assessments being carried out by his Department on the impact of AI on graduate-level and entry-level employment with emerging data of reduced hiring in certain sectors; and if he will make a statement on the matter. [45645/26]
AI is not simply about technological change. It is about whether Ireland continues to offer a fair and functioning pathway from education to employment or whether AI will risk closing the door on the next generation before it even gets a chance to start. Will the Minister outline what his Department's latest assessments show about AI impacts on employment, in particular on graduate and entry-level jobs?
I thank Deputy Moynihan for his question. My Department is continually monitoring the labour market and the impact of artificial intelligence. We have a number of relevant pieces of research I can cite, including research from the expert group on future skills needs published last year, How AI is transforming the Irish Labour Market. This work highlights the speed at which Ireland is moving in relation to AI, noting the strong demand for AI jobs but also the robust supply pipeline in relation to AI. Ireland has a track record of producing very skilled workers and this is also happening with AI, as work in my Department has shown. Ireland has seen a doubling in AI jobs and usage since 2023. While this is a fast-changing field, it shows the inherent dynamism and resilience of the Irish labour market. This work is currently being updated, which is important given the fluid situation that exists.
Furthermore, work published in conjunction with the Department of Finance highlights that the labour market here is highly exposed to AI, given the composition of employment, specifically in relation to ICT, financial and professional services. The work also noted that AI may already be affecting employment patterns, with sectors more exposed to AI, such as ICT and financial services, recording significantly weaker employment growth in recent years.
In terms of graduate or entry-level jobs, we are monitoring developments closely and working closely with the Department of Finance. Its latest annual progress report from April 2026 is informative in this regard. It notes that employment growth among 15- to 29-year-olds in sectors at risk to AI declined by 2.5% between 2023 and 2025, despite overall employment increasing. This was particularly pronounced in the ICT sector.
More broadly in respect of the labour market, activity levels remain strong, despite a difficult international environment. The latest figures from the Central Statistics Office show that employment growth was effectively flat in quarter 1 of 2026. However, the overall employment levels remains exceptionally high at 2.8 million people.
The data suggests it is not a collapse in opportunities, but more a fundamental restructuring of how graduates enter the workforce. Research indicates that almost half of employers are reducing their entry-level roles, directly linked to AI adoption, and 83% of recruiters say that hiring is now more selective and strategic. While almost 40% of employers increased recruitment earlier this year, that growth was concentrated in specialist roles.
Even in sectors like IT and telecommunications, where 56% of employers are increasing hiring, those roles are increasingly focused on experienced and highly specialised candidates and over a quarter of firms are recruiting specifically in AI and machine learning. The challenge is clear. The opportunities are not disappearing but the channel into them is narrowing. Will the Minister set out what targeted interventions are being developed to ensure graduates and entry-level workers are not choked out of the labour market as that transition accelerates?
We are working very closely with all our skills partners and enterprise agencies to ensure training is being delivered in the key sectors that are at risk, namely, graduates, as well as particular cohorts of the employment market like ICT, professional services and legal and financial services. We have a huge amount of skills upgrading to do in those areas. Take the IDA for example. We set out an ambition to train 40,000 people over the four-year strategy and in year one we have hit 33,000. That demonstrates the capacity and training we are doing. There is also a huge amount of opportunity. It is not a period of decline for the labour market but a period of transition in which old functions will change and new opportunities will emerge. Take, for example, our high-performance growth unit in Enterprise Ireland. Of 196 new businesses this year, half of them are grounded in AI. That shows the opportunity there. We are working with the expert group on future skills. Our new national skills observatory, which will be profiling and matching the skills and work our skills partners will be doing, has been established. We will have our AI office up and running from 1 August and it will be building capacity and ensuring our citizens are fully trained to grasp the opportunities that are presented.
Ireland has strong growth in AI and high demand for skills but those entry-level roles are reducing and graduates are going to struggle to gain the experience required in that growth and to be ready to take part in that growth. A whole cohort of new graduates finished their exams a few weeks ago and are waiting on results and preparing to enter the labour market. Ireland's economy, as the Minister says, is especially exposed to AI with about 63% of employment estimated to be affected to some degree or another. That reflects our concentration in knowledge-intensive sectors. It makes Ireland both a leader in AI adoption but also very exposed to labour market disruption. Employers are increasingly optimising for productivity and they are doing that by hiring experienced workers. That is going to threaten the pipeline of future talent. What targeted interventions are being considered to sustain graduates with clear pathways? These could be internships or incentives for entry-level hiring. Crucially, how is the Government going to ensure Ireland's AI success does not come at the expense of opportunities for younger people?
We have updated our digital and AI strategy, which has 80 deliverables, while working right across our skill partners to ensure our citizens are getting that transformational training that makes those jobs sticky. We also have done a huge amount of work on establishing our national skills observatory with the Minister, Deputy Lawless, and his Department of further and higher education to profile those skills and to ensure we are having the output from our tertiary education partners that really reflects a changing labour force. It is going to be a big challenge for someone who started a course in third level two or three years ago as the labour market has changed significantly, particularly at entry level. We have a huge amount of training and skills profiling in relation to that. I mentioned what our colleagues in the IDA are doing in making a database of 300,000 employees and making those jobs more sticky and targeting them before they come under pressure. The key thing we are trying to do is predict the cohorts that are under pressure and get that training in, get in with our employers and offer them the training so employees can benefit from it and ultimately secure the jobs rather than leaving them exposed to artificial intelligence.
Small and Medium Enterprises
Cormac Devlin
Ceist:151. Deputy Cormac Devlin asked the Minister for Enterprise, Tourism and Employment the way in which the SME test is helping small businesses; and if he will make a statement on the matter. [45641/26]
Last year we brought in the SME test. It is a great way of checking all legislation before it comes in to see how it will affect SMEs. In what ways does the Minister think the test has helped small businesses in that time?
I thank the Deputy very much for the question. The SME test encourages policymakers across Government to apply the principle of thinking small first, to consider the impact any measures may have on SMEs and to mitigate any impacts where possible. This approach helps small businesses by ensuring new policies are designed in a way that supports SMEs and reduces unnecessary burdens on them.
In May 2024, the Government committed to ensuring an enhanced SME test would be applied to all major new measures. In October 2024 the Government formally approved the enhanced SME test and guidelines. Under the current programme for Government we have committed to rigorously implementing the SME test to scrutinise every piece of legislation and regulation for its impact on SMEs. In addition, the Action Plan on Competitiveness and Productivity commits that all Departments will apply the SME test to all measures and in particular to policy initiatives where it is proposed to increase costs on small business and include the SME test in the Government handbook.
As for impact, we are seeing a growing and more consistent use of the SME test. In 2025, 33 SME tests were applied by ten Departments. This compares with 26 SME tests applied by eight Departments in 2024. The year-on-year growth of almost 27% in the number of tests applied in 2025 is a good indication the enhancements, implementation groups and Government commitments are having an impact. The SME test is influencing outcomes and helping small businesses in a practical way. For example, in the development of additional powers for the Agri-Food Regulator, engagement identified a potential burden on smaller firms, thereby resulting in small businesses with up to 50 full-time equivalent staff being excluded from the scope of the legislation. In our Department, its application to the employment permits Bill identified options to mitigate impacts on SMEs.
Gabhaim buíochas leis an Aire Stáit. The principle, as he said, behind the SME test is to think small first to reduce unnecessary administrative burdens on businesses. However, many small business owners would say they are still spending too much time dealing with paperwork and compliance requirements rather than running their businesses. For example, a constituent who operates a petrol station informed me he requires 14 separate licences, permits and registrations to operate his business. While each requirement may have a valid purpose, the cumulative burden can be significant. A lot of these requirements were there before we brought in the SME test but what can the Minister of State and his colleagues do to reduce this burden going forward? Will he outline specific examples where the SME test has resulted in reduced reporting obligations, streamlined processes or simplified compliance requirements for small businesses?
I again thank the Deputy. The Minister, Deputy Burke, and I are looking at how we streamline the application processes for a lot of businesses and SMEs that take the opportunity to apply for grants. We have undertaken a simplification process to do with the LEOs. We are also looking at more systemic reform within the LEOs to make them more accessible to small businesses across the 31 local authorities. We will ensure that we engage with businesses to make sure their feedback feeds in to the enhancement process. That is really important. Overall, the SME test and the consistency of its application is really important. The Minister, Deputy Burke, has been very vocal in ensuring it is in the Cabinet handbook that all Departments that are bringing memos to Government on new legislation or initiatives undertake the SME test to look at any untoward cost impact on businesses. It has been effective in its implementation so far.
Gabhaim buíochas leis an Aire Stáit. Another key objective of the SME test is to identify circumstances where exemption thresholds or more proportionate requirements may be appropriate for smaller businesses. Can the Minister of State provide examples where the SME test has resulted in exemptions or thresholds being introduced for smaller businesses? Furthermore, does he believe there is scope to expand the use of such measures in future, especially where the cost of compliance falls disproportionately on small businesses with limited staff and resources?
As I said in my earlier contribution we have seen real, practical outcomes in regard to its implementation, such as with the Agri-Food Regulator legislation. SMEs employing fewer than 50 staff were excluded from the initial analysis in the employment permit system. Processes were simplified and digitalised and fees were made more flexible. As for regulatory thresholds, we have looked at turnover limits, which were introduced to protect small businesses from compliance costs. These are really practical and meaningful changes that directly benefit small businesses.
Through the enhanced framework, every memorandum for Government must include a completed SME test or explicitly explain why one is not required. That is a fundamental shift in how we protect small businesses from undue cost burdens and regulatory impact.
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