I thank Deputy Conway-Walsh for this very important question. I firmly commit to ensuring that small- and medium-sized businesses have access to affordable credit. My Department has developed several loan guarantee schemes, the first in 2012, that have enabled participating lenders to offer loans at interest rates below their standard commercial terms. The scheme currently open to SMEs is the growth and sustainability loan scheme. This is a €500 million initiative developed by my Department and the Department of Agriculture, Food and the Marine, underpinned by a partial guarantee from the European Investment Bank Group and the Strategic Banking Corporation of Ireland, SBCI. The SBCI also operates the scheme. This scheme offers long-term loans ranging from €25,000 to €3 million, with terms of up to ten years, to SMEs, farmers, fishers, and small mid-caps. Loans of up to €500,000 are available on an unsecured basis, making finance more accessible for SMEs. Interest rates under the scheme are determined by each participating finance provider, in accordance with its own credit policies. However, all rates must reflect the benefit of the EU-backed guarantee and SBCI support, ensuring they are below standard commercial lending rates. In practice, participating lenders offer discounts ranging from 1% to 4.86% compared to their equivalent SME loan rates, making credit more available. A minimum of 30% of the scheme's lending is targeted at environmental sustainability and climate action, with the remainder supporting productivity and competitiveness. Loans for climate-related purposes also benefit from an additional interest rate discount. As of the end of June, 1,930 loans had been approved, amounting to €432 million, by my Department and the Department of Agriculture, Food and the Marine. We are negotiating with the EIB Group and the SBCI on the potential to extend the duration and expand the capacity of the loan. I plan to bring proposals to the Government in the next three months.
Sentiment score: 0.39
To go back to the evidence, if we look at the first scheme I referenced, which was the growth and stability loan scheme, we have at this point in time almost used up the €500 million allocation. This demonstrates that SMEs are using it and drawing it down. We also increased the Microfinance Ireland loan scheme for our smaller SMEs, up to €50,000 from €25,000, and it is supporting approximately 12,000 jobs in the economy. We have had a succession of schemes, including the Ukraine guarantee scheme, the future growth and loan scheme and the Brexit loan scheme. A huge amount of low-cost finance has been provided. We are also renegotiating to extend the €500 million and increase its capacity and keep it competitive. I also point out the Department of Finance recently conducted a survey of SMEs and only 6% of them cited the cost of finance as an issue in terms of getting support. We are reducing the conditionality of all schemes to make it easier for SMEs to go through the application process. This is very much to the forefront of my mind in doing things simpler, lighter and faster.
Sentiment score: 0.37
I am very happy to work in this regard. The critical thing I am trying to do is make these supports available to our SMEs and family businesses, which employ two thirds of the people throughout our economy. I am very aware that the average SME does not have a finance director or a HR director. A lot of the great work is done around the kitchen table. This is why we are working with the centre of excellence at Enterprise Ireland and those who craft the schemes so we are reducing red tape and the administrative burden. Particularly for some of the lower-scale grants, such as with regard to digitalisation or sustainability supports, which can be less than €10,000, we should be able to turn them around in 24 hours. This is my target for the agencies. We are working to deliver this. There are other methodologies we can bring in to get efficiencies and ensure we are really supporting them at the forefront. The cost of doing business advisory forum is working with a lot of the regulators and their interoperability among the sectors. What they ask of various applicants may already have been asked in other areas and we want to get a floor under this and reduce the administrative burden.
Sentiment score: 0.23
I thank Deputy Conway-Walsh for her question. I am happy to inform the Deputy that my Department is making significant progress in simplifying the application process for enterprise grants, particularly those administered through the local enterprise offices and Enterprise Ireland. Following instruction from my Department through the recently established small business unit, the Enterprise Ireland LEO centre of excellence has completed a comprehensive review of application requirements for each of the LEO grants. This has resulted in a significant reduction in the number of questions across multiple grant schemes. For example, the number of questions regarding the priming and business expansion grants has reduced by 47%, the green for business grant by 30% and the feasibility grant by 28%. Work has already commenced with the online application service provider to make the recommended changes and to merge the application processes for the digital for business and green for business consultancies with the respective follow-on grants: grow digital and the energy-efficiency grant. Enterprise Ireland is also driving this process through major initiatives. The service delivery transformation programme will introduce a new operating model, along with advanced technology and data capabilities, to deliver service excellence. The start-up Ireland programme is focused on creating a better journey for start-ups and entrepreneurs, strengthening ecosystem co-ordination and enhancing both national and international connectivity. Together, these programmes will help to deliver greater impact and support for Irish enterprise. Work is also under way with the National Enterprise Hub to examine how it can be utilised to reduce the administrative burden for SMEs applying for Government supports. Scoping work is taking place to identify common data points in applications, starting with agencies under the control of my Department, and to consider how the National Enterprise Hub can be further developed in line with the "once-only" principle of data provision.
Sentiment score: 0.53
We are not really talking about regulation here but about the administrative procedures for small businesses to get the funding they need to develop online platforms, to become more sustainable and to meet their objectives. What we want to do is to make that process easier. This is not a significant risk to the taxpayer. Many of these grants are particularly small and many genuine enterprises just do not have time because time is their scarcest resource. We are working through the process with Enterprise Ireland. We have made significant progress on our LEOs and the users should now be seeing the benefits of that. On design and policy, our SME test has now been brought to our State agencies. We are really looking at thinking small first. How do changes, whether a statutory instrument or the design of a scheme, impact on the smallest businesses that do not have the resource base to go through very significant administrative processes? We are doing a huge amount of work on that. That is on the policy side. That is how you change how the scope is determined across government.
Sentiment score: 0.20
I appreciate the feedback and ideas because we all need ideas to come forward. Along with Enterprise Ireland and the LEOs, I am particularly focused on making things more accessible and trying to reduce the administrative burden. I am trying to establish a new accelerator programme for our country. The Deputy will be aware of PorterShed in Galway, Dogpatch Labs in Dublin, the NDRC and issues around it. We need to ensure that we have a stable landscape for those businesses that are part of the indigenous economy so that they can thrive. It is to be hoped we can bring that forward through the capital allocations we have received. A new national accelerator programme will bring those strands together and ensure that prime space is kept for businesses which need it in order to give them the opportunity to grow and scale. We know at this point in time that we are very challenged by the US. The EU has been left behind in the growth and scaling of companies, in particular on the tech side. We are far behind at this point in time and have a huge amount of work to do in this area. I am also open to ideas from colleagues and look forward to working with the Deputy.
Sentiment score: 0.23
I am not aware of making any such promise. I want to be very clear on that. The National Minimum Wage Acts allow for lower or subminimum rates of the minimum wage for employees aged 20 years and younger. Those aged less than 18 years can be paid 70% of the full minimum wage rate, while those aged 18 and 19 years can be paid 80% and 90%, respectively, of the full rate. As the Deputy is aware, the Low Pay Commission recommended the abolition of subminimum rates in March 2024. The commission highlighted in its report that this is a very complex issue. It said the Government will need to give its findings and recommendations detailed consideration and deliberation and highlighted the potential need for the Government to take its own legal advice on the matter. It is important to acknowledge the challenges the enterprise sector has faced over the past number of years. We know that the use of subminimum youth rates is largely concentrated in the accommodation, food and retail sectors, and these sectors have reported facing considerable cost pressures. As part of the measures designed to bolster business resilience and support competitiveness, earlier this year the Government agreed to defer a decision on the subminimum rates until 2029. The decision should be considered in the context of the recent significant increases in the minimum wage which show that the Government continues to commit to fair wages for the lowest paid workers in our economy, but also in the context of the Government's introduction of a range of measures to assist workers, including a statutory sick pay scheme, the right to request remote working and other supports. It is also important to highlight the very real progress we have made in raising the national minimum wage over recent years. Since 2020, the national minimum wage has increased by 33.7%, from €10.10 to today's rate of €13.50. In 2024, there was a significant uplift of 12%, or €1.40, in the minimum wage. This year, the minimum wage increased by 80 cent, an increase of over 6%. These increases were well ahead of inflation and projected wage growth in the economy and have brought about substantial and real wage growth for the lowest paid workers in our economy.
Sentiment score: 0.23
This is not an over and back exchange. The Deputy can make his contribution.
Sentiment score: 0.00
The Government's commitment is to defer the decision to 2029. We will publish the data behind that shortly. It should be noted what the commission actually said on subminimum rates. It is not exactly what the Deputy quoted. It stated: The Low Pay Commission recommends that sub-minimum wage rates for employees who are 18 and 19 years of age should be abolished no sooner than 1 January 2025. Contrary to what the Deputy said at the very outset, I did not make any commitment to abolish the subminimum rates. It is important to be aware that approximately 5% of 19-year-olds receive subminimum rates. The majority of workers in those cohorts are above the level of the minimum wage. Critically, the increases of recent years have been ahead of wage growth in the economy and ahead of inflation. That is combined with support from the statutory sick pay scheme, an increase in the minimum wage, banning zero-hour contracts, the introduction of legislation on tips and the introduction of auto-enrolment from 1 January. In another question, the Deputy asks about increasing the minimum wage to €17, an increase of approximately 30%, which is six times the growth rate of wages and our economy. When combined with auto-enrolment and other increases, it would leave this country without any jobs. Deputy Murphy does not have an iota of what it takes to run the enterprise economy. He does not know what it means to employ people. He does not know the value of the 2.81 million people who are going to work in our country every single day. The policies the Deputy brings forward would close down the enterprise economy.
Sentiment score: 0.02
I am proud of the role the Government has played in improving the rights of employees. The Deputy spoke about rhetoric. Every decision he puts across to us is binary. He does not consider the potential impact such decisions would have on education pathways for young people and the unintended consequences. He does not consider training. He referred to 19-year-olds and 18-year-olds. I can tell him right now that 5% of 19-year-olds are on subminimum rates. That shows us the opportunity in our economy and the pathways currently available. Everything has to be taken in the round. I can demonstrate to the Deputy that there was a 12% increase in the minimum wage rate last year, ahead of wage growth and inflation. Subminimum rates also increased last year. We plan to continue the trajectory of improving conditions for workers. I also have a responsibility to make sure those jobs are there. A corner shop in a small village may be struggling with costs, but the Deputy wants to increase its wage costs to €17 per hour.
Sentiment score: 0.22
That is what the Deputy's proposal will do. Let us be clear about it. He would close down every small business in the country if he had his way and he was running the country.
Sentiment score: 0.13
The Deputy does not have any balance. He does not know what it means to keep good high-value jobs in our economy.
Sentiment score: 0.22
I thank the Deputy for the question, which I appreciate. It concerns a very important area for us as a Government and one that under the programme for Government we have committed to finalising the action plan on the promotion of collective bargaining by the end of 2025, in line with the EU directive on adequate minimum wages. Work on developing the action plan in conjunction with our social partners is currently ongoing. Under Article 4, the directive aims to promote collective bargaining on wages in all member states. Each member state in which the collective bargaining coverage rate is less than a threshold of 80%, as is the case in the majority of member states, including Ireland, shall provide for a "framework of enabling conditions" for collective bargaining and shall also establish an action plan to promote collective bargaining by the end of 2025. The European Commission expert group's report on transposition of the directive is clear that the design of the framework of enabling conditions and the content of the action plan is entirely up to member states, in consultation with the social partners. A technical working group has been established in the Department with officials and the social partners to examine what will be considered for inclusion in Ireland’s action plan, and the group has met regularly this year. The work of this group is now at an advanced stage and is essential in developing the content of the action plan. It met as recently as last week and will be meeting again shortly. I expect the action plan on collective bargaining to be published over the next couple of months once this work has been completed. We were also very clear regarding the case coming forward in relation to the adequate minimum wage directive. I made it very clear that irrespective of the result of that we are pressing ahead and will have our plan together. In relation to the consultation open from 14 April to 12 May, I note we received about 80 valid submissions, to which we have responded. Working with our social partners and through the Labour Employer Economic Forum, LEEF, is very important. There will also be challenges from both sides as the plan is being worked on, but I want to get the best plan we can by the end of the year and I am very committed to achieving that.
Sentiment score: 0.32
I thank Deputy Conway-Walsh again for her comments on the matter. As I said, it is one area that through the programme for Government we are very much committed to. The Deputy quite rightly spoke about participation in the various forums. Deliberations will be ongoing on that and how we can address it in our action plan. We will be doing that. We have got a lot out of the LEEF structure in terms of the social partners. It is a good mechanism to air these issues. We will not solve everything, however. I can be absolutely honest about that. We will, though, give our best effort to this plan to build confidence and show the Government's capacity regardless of the uncertainty that was there through the legal challenge. We have committed to pressing ahead. I think that is an important statement on how we value workers and value their right to collective bargaining and how we want to give people that opportunity and put in place the conditions where that can grow.
Sentiment score: 0.29
I absolutely agree that quality jobs are so important in our economy. I think this will be one of the areas we will focus on during our Presidency of the EU in the second half of next year. That will give us a key opportunity. We must remember that in the action plan and under the adequate minimum wage directive, MEPs from my party, including Regina Doherty and others, played a huge role in really working on that directive and getting agreement in the European Parliament. We are, therefore, very keen to try to bring forward the best possible plan that we can. When our EU Presidency term does come, we are also very keen to focus on high-quality work, because this is what our economy should be about. This is why we are very focused on it at all times. I have been part of the past number of Governments and I know the huge improvements we have had for lower-paid workers. That must be acknowledged. When people challenge us on what areas there have been improvements in, it must be acknowledged we have banned zero-hour contracts, which were totally wrong, brought in tips legislation to protect vulnerable workers and we now have a sick pay scheme. Additionally, we have auto-enrolment, which will future-proof people and their retirement plans. The State will be stepping up to the mark over the next number of years. Those are key improvements in the economy, including watching out for lower-paid workers, while also trying to enhance the capacity to get more high-quality jobs into the country, because this will be critical for us all to realise our ambitions in life.
Sentiment score: 0.27