Written Answers Nos. 81-100
81. Deputy James O'Connor asked the Minister for Enterprise, Tourism and Employment if he will outline any engagements between his own Department and the Department of Finance regarding the potential extension of the hospitality excise rebate scheme to include public houses that do not serve food, given their continued cost pressures and importance to the rural and night-time economy; and if he will make a statement on the matter. [33206/25]
Amharc ar fhreagraI understand that the Deputy is referring to the Hospitality VAT rate, in the context of commitments in the Programme for Government 2025: Securing Ireland’s Future. The former commits to bring forward measures to support SMEs, in particular the retail and hospitality sectors - acknowledging the increased cost pressures on these sectors - and that this will entail changes to VAT, among other measures (and to be implemented as part of the normal Budgetary process).
It is important to note that VAT policy is subject to the VAT Directive agreed at the EU-level. EU rules allow Member States to apply a headline VAT rate, and two additional reduced rates on goods and services (with limits as to how low these rates can be). There are also a small number of further exceptions, where a 'super' reduced rate below 5% (or a zero rate) may apply. In the case of Ireland, the following rates apply:
• standard rate (23%)
• first reduced rate (13.5%)
• second reduced rate (9%)
• livestock rate (4.8%)
At present, the hospitality sector is subject to the first reduced rate at 13.5%. The hospitality sector was subject to the 9% rate from July 2011 to January 2019 and again from 1 November 2020 to 31 August 2023. This was facilitated by changing the applicable rate of VAT, which is allowable in certain instances and subject to the rules of the VAT Directive.
I appreciate the specific difficulties faced by publicans operating a public house which does not serve food and I understand that these businesses would not have benefitted from previous VAT reductions (when compared to those which did serve food). My Department has brought forward a number of measures in recent years which will have been of benefit to smaller pubs in particular, such as the Increase Cost of Business (ICOB) and the Power-Up grant schemes.
With regard to the VAT rate applied to alcohol, I understand that it is not possible under the EU VAT Directive to apply a reduced VAT rate to alcoholic beverages. Therefore, any change to the applicable VAT rate for alcohol would require a change in the standard rate of VAT and consequently, a change to all goods and services for which it is applicable.
My officials and I regularly engage with the the Department of Finance on tax policy, including as part of the annual Budgetary process. I welcome the commitment in the Programme for Government to bring forward changes to VAT, PRSI and other measures. I believe that it is important that public houses that do not serve food must be considered in the context of these commitments. Ultimately, any changes to VAT policy are a decision for the Minister for Finance as part of the annual Budgetary process.
82. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Tourism and Employment the reason previous commitments made by the Government on worker's rights issues have not been delivered. [33190/25]
Amharc ar fhreagraThe Government is committed to supporting workers and promoting positive working conditions in Ireland and our legislation is kept under review to maintain our robust suite of employment rights. It is also important to acknowledge the challenges the enterprise sector has faced over the last number of years and to maintain a regulatory environment that allows businesses to remain viable and indeed to thrive.
There have been significant developments in Ireland’s employment legislation in recent years including the introduction of statutory sick leave, the right to request remote work, protections for workers’ tips and gratuities, the introduction of an additional public holiday, banning zero hour contracts in most cases and enhancing the protection of employees facing collective redundancies due to insolvency.
There have also been substantial increases in the National Minimum Wage over the last few years. In 2024, there was a significant uplift of 12% / €1.40 in the minimum wage, and in 2025 the minimum wage increased by 80c (over 6%) to €13.50. These recent increases were well ahead of inflation and wages and have brought about substantial real wage growth for the lowest paid workers in our economy.
Government still expects the minimum wage to increase over the coming years, however it is important that we manage these increases in a way that does not damage employment or competitiveness. As part of measures designed to bolster business resilience and support competitiveness, Government has agreed to adjust the implementation timeline for the Living Wage to 2029.
2025 will see further progression in employment rights. Officials in my Department are currently developing an action plan to promote collective bargaining, as required by the EU Adequate Minimum Wage Directive. The action plan will be published by end 2025.
The Employment (Contractual Retirement Ages) Bill 2025 was published on 1 April 2025 and successfully completed Second Stage in the Dáil on Tuesday 8 April 2025. The Bill, once enacted, will deliver a new employment right allowing, but in no way compelling, an employee to stay in employment until the State Pension Age of 66.
We are also ensuring employees of employers who cease trading without formally winding up can claim outstanding monies owed to them from the Social Insurance Fund under the Insolvency Payments Scheme. The Protection of Employees (Employers' Insolvency) (Amendment) Bill 2025 will deliver this change. This Bill was published on 23 May and completed Second Stage in the Dáil on 28 May.
The Sectoral Employment Order (Construction Sector) 2024 comes into effect on 1 August 2025 to reflect higher rates of pay for craft and general constructions workers. Pay will increase by 3.4% in August 2025 and again by 3.2% in August 2026.
We will also see further measures to improve pay transparency and progress towards the introduction of autoenrollment next year, which will be known by its brand name, My Future Fund. My Future Fund is on track to launch in January 2026, as recently announced by the Minister for Social Protection.
These upcoming measures in particular underscore this Government’s continuing commitment to ensuring a safe working environment, fair treatment for all workers, and fair wages, particularly those for the lowest paid workers in our economy.
83. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Tourism and Employment to outline his engagements with the Central Statistics Office, Fáilte Ireland and other stakeholders, regarding data collection on the number of overnight foreign resident visitors to Ireland. [33191/25]
Amharc ar fhreagraThe Central Statistics Office (CSO) is Ireland’s national statistical institute with responsibility for publishing independent statistics on important economic sectors including tourism. This includes a monthly release giving information on the number of overseas visitors to Ireland. The most recent monthly figures were published by the CSO on 29th May and gave details of overseas visitors to Ireland in April 2025. The data showed a 4% reduction in the number of overseas visitors in April 2025 compared to the corresponding month in 2024. It should be noted however, that comparing April 2025 to April 2023, visitor numbers were up by 14% while associated revenue also showed a slight increase.
My Department has supported ongoing engagement between the tourism agencies (Fáilte Ireland and Tourism Ireland), the tourism industry and the CSO. This has included engagement on the methodology and interpretation of the Inbound Tourism data as well as the sharing of data from industry sources. The most recent such engagement took place on the 29th May and further engagement is envisaged for the weeks ahead.
In relation to longer term policy, the Tourism Policy Framework 2025 – 2030 was published by the previous Government last November. I have asked my officials to consider how commitments in the Programme for Government align with the Policy Framework and to prioritise the finalisation of a new Tourism Policy which reflects the Programme and other Government priorities. This new Policy Statement will also consider how to provide for ongoing structured engagement between industry and the relevant agencies in relation to tourism statistics.
84. Deputy Sinéad Gibney asked the Minister for Enterprise, Tourism and Employment the engagement his Department has had with stakeholders surrounding the proposed change to the Corporate Sustainability and Due Diligence Directive in the EU Omnibus proposals, in particular details of engagements with environmental, human rights, and anti-trafficking organisations; and if he will make a statement on the matter. [33161/25]
Amharc ar fhreagraThe Deputy will be aware that the first omnibus dealing with sustainability matters was published on 26 February 2025.
Since the publication of the Omnibus proposal, officials from my Department, both in Dublin and Brussels, have engaged with a range of stakeholders and received numerous submissions concerning the content and implications of the proposals. These include representatives from civil society such as Watershed and the Irish Coalition for Business and Human Rights and business organisations. I can assure the Deputy that all submissions are welcome and reviewed and we will continue to do so.
99. Deputy Ryan O'Meara asked the Minister for Social Protection if he has any plans to review the appeals process for the domiciliary care allowance; and if he will make a statement on the matter. [33038/25]
Amharc ar fhreagraThe Social Welfare Appeals Office of the Department of Social Protection is responsible for determining appeals against decisions in relation to social welfare entitlements. Appeals Officers are independent in their decision-making functions. I understand from the Chief Appeals Officer that there are currently 566 Domiciliary Care Allowance appeals on hands. This is down from a figure of 1,300 in mid-May 2025. 426 of the 566 appeals still on hand relate to April, May and June. The balance of these appeals are assigned to Appeal Officers, who are waiting for additional information to be provided by the appellant or an oral hearings to take place.This reduction in pending appeals represents a significant improvement in performance and reflects measures taken by the Chief Appeals Officer to deal with the increase in appeals received during 2024. This increase reflected an increased number of claims made to the Department and an improvement, via a new online system, in access to the appeals service.As part of the measures taken by the Chief Appeals Officer 20 additional Appeals Officers were assigned and attended training during December 2024 and January 2025 and are currently making appeal decisions. In addition, new Appeals Regulations came into effect from the 28th of April which provide, among other things, for simpler processes and specified response times. The new regulations now formalise the requirement for the scheme area within the Department to carry out a review of the initial deciding officer’s decision. This should in time reduce the number of appeals that require consideration by an appeals officer.The Chief Appeals Officer continues to monitor processing times and every effort is made to reduce the time taken to process an appeal. However, the drive for efficiency must be balanced with the competing demand to ensure that decisions are consistent and made in accordance with fair procedures and the provisions set out in primary legislation and regulations.
100. Deputy Eamon Scanlon asked the Minister for Social Protection the initiatives he is taking to support foster carers; and if he will make a statement on the matter. [33147/25]
Amharc ar fhreagraThe Government is very conscious of the important role of foster carers in our society. Support for foster carers is the responsibility of my colleague, the Minister for Children, Disability and Equality, and Tusla, an agency under the aegis of that Department.The Foster Care Allowance is paid by Tusla. In 2025 it is paid at rate of €400 per week for children aged under 12 and €425 per week for children aged 12 and over. The payment is not means-tested and it is paid in respect of each foster child.In the Programme for Government, we committed to examining the Back-to-School Clothing and Footwear Allowance eligibility criteria to allow flexibility for foster carers. We have done that and I am really pleased that children for whom Foster Care Allowance is being paid will be eligible for the Back-to-School Clothing and Footwear Allowance this year, once they meet the qualifying conditions for the payment. This is something that representative groups have been calling for. It is estimated that up to 2,300 children, for whom Foster Care Allowance is being paid, will now qualify for the payment. Applications for this scheme are now open until 30 September.My Department provides a comprehensive package of income supports covering a range of contingencies such as disability, caring and job seeking. Foster carers may qualify for these income supports as long as they meet the eligibility conditions. Where a foster carer is in receipt of a primary payment from my Department they may be eligible for a Child Support Payment in respect of any foster child in their care.It is important to note too that the Foster Care Allowance is not assessed as means for any social welfare payments provided by my department.Where a child is placed into care, the qualified parent, usually the child’s mother, retains the Child Benefit payment for six months. After six months in continuous care, the Child Benefit for the child may be paid to the foster carer. This is in order to preserve the birth parent’s entitlement where the child is placed in short-term foster care.I know pensions are another issue of concern to foster carers. The current State Pension Contributory system provides measures including PRSI credits, Homemaking Disregards and HomeCaring Periods to recognise caring periods of up to 20 years outside of paid employment in the calculation of a payment rate. Foster carers are entitled to the benefits of the Homemaker’s Scheme or HomeCaring Periods, and they may also be entitled to long-term carer’s contributions where they meet the criteria and 20-year threshold.Officials from my Department have met with Foster Carer Representatives and provided detailed explanations on the State pension system and the related contributions necessary to qualify for a social-insurance pension and the options open to them.I trust this clarifies the matter for the Deputy.
