Dáil Éireann Debate, Tuesday - 28 April 2026
206. Deputy Grace Boland asked the Minister for Enterprise, Tourism and Employment the way in which the SME test is being applied in practice to assess the impact of new legislation and regulations on business costs; if he will provide specific examples of legislation or policy proposals where the SME test has been used and influenced outcomes; and the way in which this information is being shared across Government. [30414/26]
Amharc ar fhreagraThe SME Test encourages policymakers across Government to apply the principle of “think small first” and consider the impact that any new measures may have on SMEs, and to mitigate against those impacts where possible.
This approach helps ensure that new policies are designed in a way that support SMEs and reduces unnecessary burdens on them.
In May 2024, the Government committed to ensuring that an enhanced SME Test will 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 implement the SME test to scrutinise every new piece of legislation and regulation for its impact on SMEs".
In addition, the Action Plan on Competitiveness and Productivity published last year also states that, “all Government Departments will apply the SME test to all measures, in particular to policy initiatives where it is proposed to increase costs on small business and include the SME Test in the Government handbook.”
In terms of impact, we are seeing a growing and more consistent use of the SME Test. In 2025, 33 SME Tests were applied by 10 Government Departments. This compares to 26 SME Tests applied by 8 Government Departments in 2024.
The year-on-year growth of almost 27% in the number of Tests applied in 2025 is a good indication that the enhancements, implementation group and Government commitments are having an impact.
The SME Test is also influencing outcomes in a practical way. For example, in the development of additional powers for an Rialálaí Agraibhia (Agri-Food Regulator), engagement identified a potential burden on smaller firms, resulting in small businesses with up to 50 full-time equivalents being excluded from the scope of the legislation.
In my own Department, the SME Test application to the Employment Permits Bill identified options to mitigate impacts on SMEs, leading to a permanent move to electronic permits and the retention of the option to refund fees for refused applications, while related consultation on Minimum Annual Remuneration resulted in a more gradual adjustment period to 2030.
Further examples include a new circular to support Green Public Procurement, which requires contracting authorities to consider SME impacts and to design criteria, reporting and monitoring so that they do not create disproportionate cost or administrative barriers.
In addition, The Media Sector Bill also demonstrates the impact of the SME Test, with public consultation capturing input from the SMEs most affected and informing the introduction of a €2 million turnover threshold, removing costs for smaller businesses.
To support implementation of the SME Test, my officials have delivered information sessions to several Government Departments. Training and resources were also made available to all Departments in 2025 through the OneLearning platform. Additional resources are being developed and will be accessible to civil service policymakers at any time through OneLearning.
Each Department is also expected to publish SME Tests on their websites, ensuring transparency and accessibility.
I can assure the Deputy that my Department will continue to work with all Departments through the cross-Government network to support and monitor the application of the SME Test, and to ensure that it is applied consistently and effectively across Government.
