I thank Deputy Healy-Rae for raising this important issue. Last year, the Government introduced two business support schemes that were designed by my Department and administered by the local authorities. The increased cost of business, ICOB, scheme was launched in March of 2024 and was delivered in two phases. The first phase was a broad scheme that distributed over €154 million to 75,000 SMEs in all sectors of the economy in recognition of the higher costs of doing business. The second phase was targeted specifically at businesses operating in those sectors that were most impacted by increasing costs and was focused on the retail, hospitality and beauty sectors. Almost 39,000 SMEs in those sectors received their second ICOB payment. A total of €90 million was paid out in the second phase of ICOB in 2024. As part of budget 2025 last October and in recognition of the continued high energy costs the Department introduced the power up grant. Under this scheme over 39,000 SMEs in the retail and hospitality sectors received a flat grant of €4,000 in the final months of the year. In total, over €158 million has been paid out through the power up grant. Taken together, the grant schemes paid out over €400 million to small and family-owned businesses right across the country in a very short period. Following the launch of the power up grant, the Department and local authorities became aware of issues where many businesses were misclassified and were subsequently not eligible for the second ICOB payment and the grant. To address this, the Government recently approved an appeals process that will give those businesses in the retail, hospitality and beauty sectors that were not eligible for ICOB and the power up grant because of the misclassification issue the opportunity to register for these grants. I emphasise that this is not a reopening of the grant scheme. This is designed solely to allow those who were originally misclassified the opportunity to register for the grants. Subject to the agreement of the local authorities, we are working extensively with many of the local enterprise offices, LEOs, and intend to open the appeals as soon as possible. Local authorities will contact eligible businesses. They are currently working through those who were misclassified and did not receive a second payment under ICOB. We will inform those businesses of the necessary steps to reapply for the second phase of ICOB and the power up grant in the coming period.

Sentiment score: 0.38

I again thank the Deputy for raising this important issue. As outlined, my Department is actively working with local authorities and the LGMA to finalise the details of the appeals process. This process will allow businesses that were misclassified to have their cases reviewed and, where appropriate, be given access to the supports. This is a priority for the Department. We want to ensure that we do everything possible to commence the appeals process without delay. We need to get it right, and we are finalising matters with the local authorities. We will contact eligible businesses in that regard. Under the first phase of ICOB, over 75,000 SMEs registered and were given a flat payment. Under the second phase, 39,000 were eligible. We need to determine how many of those who were deemed ineligible were actually eligible. That work is currently being undertaken. This Government recognises the vital role that SMEs play within local economies, towns and villages. I am sure that Deputy Healy-Rae has been a big advocate for the SMEs in Kerry. We want to ensure that we can alleviate some of the significant pressures they are under. That is the importance of ensuring that SMEs get a cash injection. We placed a particular focus on the retail, hospitality and beauty sectors because they were the most impacted. A paper commissioned by the Department detailed rising operational costs and identified that the greatest cumulative burden fell on those sectors in terms of cost changes and regulatory burdens. The Department will continue to work with local authorities to ensure that there is a speedy process put in place to deliver for those businesses who need it most.

Sentiment score: 0.26