My Department’s report on the assessment of the cumulative impact of proposed measures to improve working conditions in Ireland published last year highlighted that many of the recent cost increases for business were related to Government imposed regulatory changes. Business groups have also recently highlighted the impact of the overall regulatory burden and the administrative burden on business. The programme for Government calls for the establishment of a cost of business advisory forum that will focus, in particular, on the regulatory burden as well as other costs highlighted by business. The recent memorandum for Government on the action plan on competitiveness and productivity also stated that in order to address costs, and so as not to duplicate existing structures, the forum should be established as a sub-group of the enterprise forum. It is proposed that the cost of business advisory forum will comprise officials from key regulatory agencies, as well as representatives from the enterprise sector and social partners. The aim would be to convene its first meeting before the end of May. It is envisaged that the forum should be output-orientated and not be just a discussion group. This approach would see a finite number of meetings, possibly no more than eight meetings, focusing on individual key themes of concern to the business community. It is proposed that the outcome of the forum will be a report for consideration by the full enterprise forum, written by its chair, outlining a set of policy and administrative changes to improve the cost burden for businesses, particularly small enterprises in Ireland.
Sentiment score: -0.05
From having spoken to many businesses that have applied for ICOB grants 1 and 2 and the power up grant, I am aware they were essential grants and have been hugely beneficial across all sectors. The Department approved an overall budget of €257 million as part of the ICOB scheme. Some €246 million of that was expended on the scheme in 2024. On ICOB, this week my colleague, the Minister, Deputy Burke, brought a memo to Cabinet on the appeals process. We understand there were challenges around the misclassification of certain sectors across retail, hospitality and beauty. We have engaged with the Department of Public Expenditure, NDP Delivery and Reform on how we can ensure that those businesses which were misclassified and found to be ineligible for the scheme can reapply. We will take a number of steps over the coming weeks in order to address that.
Sentiment score: 0.39
I acknowledge some of the matters raised by the Deputy. The Government has made significant progress on the national enterprise hub, which has been established with a key focus on supporting business around training and grant applications. More than 250 supports are available online and are readily accessible for many SMEs and businesses. The hub covers more than 29 Departments and agencies. It is a vital support for many of these businesses. I compliment the local enterprise offices and all the local authorities on the administration of the ICOB and power up schemes. They are the people on the ground who engage with the businesses and have the knowledge of how businesses are classified and in which sector. It was the first scheme of its kind to be deployed at the scale required to cover all 31 local authorities. We want to establish a future platform that the Department can administer. Our officials are working on that at the moment.
Sentiment score: 0.33
I propose to take Questions Nos. 11, 16, 20 and 24 together. I thank the Deputy for submitting his question. It is probably the most topical one on the Question Paper. The increased cost of business scheme was introduced back in March 2024 and the power up grant was introduced in October of the same year. Both schemes are now closed but, in total, more than €400 million in grant aid was successfully paid to SMEs right across the country in 2024 under these grants. The schemes were designed by the Department of Enterprise, Trade and Employment and administered by local authorities with the aim of helping businesses with the increased costs associated with running a business. The power up grant was announced as part of budget 2025 and paid out €158 million in grants to over 39,000 businesses. The increased cost of business scheme made €242 million in grant payments to over 75,000 businesses, including a double payment for businesses in the retail, hospitality and beauty sectors. This is a significant direct support that has been specifically targeted at SMEs and has benefitted thousands of small and family-run businesses. I again thank local authorities all over the country for their hard work in administering both schemes and getting this vital support to businesses in a most effective and timely manner. Following the launch of power up, the Department and local authorities around the country received a substantial amount of correspondence from businesses that could not avail of the power up grant. The most common issue raised was from businesses who believed they were in the hospitality, retail or beauty sectors, but incorrectly categorised themselves during the ICOB registration process, which was the basis for the power up grant. The number of applicants that were deemed ineligible due to misclassification is not yet clear. In order to get money to businesses before the end of 2024, the power up grant was aligned with the ICOB grant. Therefore, priority was to get power up funding to businesses that had been approved for the second ICOB grant. The extent of the issue of incorrect classifications only emerged after the power up grant was launched. Businesses that had not classified themselves as operating in the hospitality, retail or beauty sectors were ineligible for the second ICOB and power up grants. This is because one of the main criteria for the power up grant was that a business must have received the second ICOB payment. While delivery of the power up grant was concluding, the Department began a review which involved detailed engagement with local authorities to assess the issue. The Department also engaged with the Department of public expenditure in order to set out the proposed solution. In order to address this, this week the Government 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, an opportunity to register for those grants. This is not a reopening of those grant schemes, rather it is designed to allow those who originally misclassified their business sector an opportunity to register for the grants. The Department will now engage with the Department of public expenditure, infrastructure, public service reform and digitalisation and with the local authorities to agree on the details of the reclassification process. Subject to agreement with the local authorities, it is intended to open the appeals process as soon as possible and engage with local authorities to ensure eligible businesses have been informed with the necessary steps to reapply. Both businesses and local authorities will be given guidance to assist in this process. Once potentially eligible businesses have been notified and the reclassification process opens, I expect grant payments will be paid to businesses where their information is submitted and has been reviewed and verified.
Sentiment score: 0.51
Regarding the Deputies' supplementary questions, we can go back and forth. To answer Deputy Ward's questions on the steps that are now required, it was important that the Government this week approved the appeals process. We will now engage with the local authorities to map out the extent of those businesses that were eligible for ICOB 1 and, therefore, applied for ICOB 2 but were unsuccessful. ICOB 2 is the important one, as those who are eligible for ICOB 2 also get the power up grant. We obtained legal advice on those, not just on getting the power up grant, but also getting ICOB 2. It is important to emphasise that. Regarding the number of those who were misclassified, the determination during the implementation of the original system was that the classification of sector, be it retail, hospitality or beauty, was insignificant when they applied initially. However, it became apparent that, when applying for ICOB 2, having the correct classification was critical in order to get both. When we implemented the power up grant in October 2024, it was on the basis that the applicant had previously been in receipt of ICOB 2. That is where the challenge is. We are scoping out the matter. While there is not a clear determination on the number, it is in the region of 6,000 businesses. We are engaging with the Department of public expenditure on the overall cost that will be involved, which is potentially in the region of €40 million. That still has to be determined. On the timeline, we want to see this done as swiftly as possible, preferably before the end of the year. We will be directed in that engagement from local authorities with businesses that applied for ICOB 1.
Sentiment score: 0.19
I thank the Deputies for their contributions as regards the announcement this morning. Regarding the scheme and Deputy McGrath's point, the scheme was not perfect. There is an acknowledgement that it was reflective of the 2023 rates. Many businesses had to engage with local authorities about up-to-date rates and a rates repayment plan to bring them up to speed. We want to enhance potential further schemes down the road and ensure that the learnings from this process are implemented in them. However, we know the importance of the cash injection that many businesses received to deal with labour costs and energy costs over the past 12 months, which have been significant for their viability. On the process, the Minister, Deputy Peter Burke, and I are determined to ensure that we have an accelerated and ambitious programme in terms of trying to get this done. The local authorities will engage with many businesses that were ineligible for ICOB 2. More than 75,000 businesses were in receipt of the first payment. They need to be engaged with to see who did not qualify and what sectors specifically did not qualify for ICOB 2. We want this to come to a conclusion and to ensure that these learnings are implemented in any future schemes.
Sentiment score: 0.30
I thank the Deputy. A well-functioning labour market and good working conditions are essential components of sustainable and inclusive growth. As part of the efforts to maintain this, the Government operates an employment permits system that is highly responsive to the labour market. I recognise the valuable role migrant workers play in Irish society, particularly in critical areas such as healthcare and ICT. The year 2024 saw significant progress in the implementation of changes to the employment permits system to address the commitments now set out in the programme for Government. The Employment Permits Act 2024 introduced several improvements to the employment permits system, making it more flexible. This includes the provision of new change-of-employer processes, facilitating permit holders to move jobs more easily. Permit holders on the two main permit types can change to a new employer under their existing permit after a period of nine months has passed since commencing their first employment permit in the State. This has made it significantly easier for permit holders to seek more favourable working conditions and to ensure employers provide the required conditions.
Sentiment score: 0.46
I understand the issues about migrants the Deputy is raising. We have heard some of the stories and I have engaged also with the migrant refugee representative body to ensure their members are listened to and are front and centre in any enhancements we can make to the scheme. We have looked at how the granting of reactivation permits is in one sense supported. We want to work with the Department of Justice in that regard and ensure that we help to support non-EU workers who are in difficult circumstances while also highlighting these changes. We have implemented a new online workers' employment permit system. That will have an additional benefit in terms of user interaction and real-time data on how permits are being processed. We will continue to engage with the Deputy and with any further suggestions he may have to support this.
Sentiment score: 0.45
I thank the Deputy for his input. We are open to any suggestions or proposals and will work through any enhancements needed within the system. I do not think it should be a rigid system. It should be agile and flexible to meet the needs of our current labour market. If the general work permits or critical skill work permits are required, we actively update the needs analysis regarding which sectors do or do not require an increased quota. We need to put workers front and centre in terms of any inappropriate conditions they may be subjected to. The Deputy is right that mobility in the sector is important. We have made additions to the nine-month eligibility requirement to move. We also need to ensure migrants are not moving from one sector to the same sector and facing challenges around where that employment is. If they are based in Dublin, the west or the south, there might be barriers to mobility, for example, family, schools, etc. I will work with the Deputy and the migrant community on that.
Sentiment score: 0.08
I thank the Deputy. As she will be aware, I, as the Minister of State at the Department for Enterprise, Trade and Employment with responsibility for small business and retail, have responsibility for ensuring that emissions in the commercial built environment are reduced in line with climate action targets. Achieving these targets will mean that many owners of commercial properties will have to carry out energy upgrade works to their buildings. Such works can include installing smart meters and replacing gas and oil heating with a heat pump system. Doing so will come at a cost, though, and it is for this reason that I welcomed the introduction of the business energy upgrades scheme, which is run by the Sustainable Energy Authority of Ireland, SEAI. The scheme is designed to meet some of the upfront costs of these upgrade works and provide rapid grants and options for businesses at varying grant rates. They can get up to 30% support for a range of energy upgrade measures and up to 50% support to optimise existing systems and support retrofit design costs. I am pleased that there has been a strong uptake of the scheme since it opened for applications. There are over 200 draft applications in progress and 78 offers have been made to date, to an approximate value of €1.8 million. The scheme is funded from the climate action fund and offers up to €120,000 for a range of common building upgrade measures, including pumps, solar thermal, automatic controls, heat pumps, ventilation and wall insulation. The applications received are for all the potential measures currently offered under the scheme.
Sentiment score: 0.44
A key priority for the Government within our competitiveness plan is to engage with the Department of energy, climate and environment to ensure we can drive down the cost of energy, not just for residential consumers, but for businesses to ensure they remain viable. It is probably one of the most important areas we can focus on and currently are focused on. We are providing grants to small businesses around emissions and ensuring that they have access to grants to support their transition to more carbon-efficient and green initiatives. This is an important energy grant scheme. The 200 applications demonstrate there is a confidence and commitment from businesses to engage in this process. We have also previously seen many businesses invest in new refrigeration units, and I know that was supported through our Department. We will continue on that trajectory. A timeline regarding the applications is with the SEAI, which administers the scheme. I can get that to the Deputy.
Sentiment score: 0.43
The Minister, Deputy O'Brien, is working with the SEAI to try to streamline the grant applications, not just for businesses, but for homes under the warmer homes scheme. Where businesses or customers successfully make an application to get onto the scheme, the scheme takes into consideration the likelihood of trying to procure a contractor. That extends out the timeline so, in effect, the timeline could be 18 months before an actual contractor is available to do it. However, I think the SEAI should measure when the actual grant is processed and approved, and then it is up to the business itself to find out when the works commence. It is a vital support, and there is a commitment to enhance this scheme into the future, with approximately €1.8 million already committed. We want to go even further in future to support business.
Sentiment score: 0.52