Alan Dillon

Overall sentiment: 0.36
Back to Debate

I thank the Deputy for his question. The Government continues to actively monitor cost developments across all sectors of the economy. The small business unit was established in the Department of Enterprise, Tourism and Employment last year, fulfilling a programme for Government commitment. There are a number of tools this unit and the Department will use to enable its work, including rigorous implementation of the SME test. The SME test tasks policy makers to consider the impact that any new policy, legislation or regulation may have on SMEs and to mitigate those impacts, where appropriate. Access to grants and support programmes has been simplified through the launch of the national enterprise hub. This is hosted and operated by Enterprise Ireland and has over 250 different supports for businesses from 32 Departments and agencies. Since its launch in 2024, the national enterprise hub has handled over 15,000 inquiries. Monthly volumes have grown steadily, with over 940 queries received in May alone, representing a 33% increase on the same period last year. The average response time has consistently remained within 24 hours. The hub's website has also attracted significant interest, with over 300,000 visits since its establishment. The small business unit has responsibility for the local enterprise offices and we are ensuring the LEOs are properly resourced to help small businesses. A review of the full suite of LEO supports is currently under way, while the Department and Enterprise Ireland are completing a review of applications for all LEO grants to reduce the number of questions and simplify requirements. The cost of doing business advisory forum was established in June 2025 as part of the programme for Government commitment to ensure we reduce business costs and ease regulatory burdens. This forum serves as a structured platform to bring together enterprise representative bodies and a number of sectors across Departments, State agencies and regulators.

Sentiment score: 0.30

I thank Deputy Dolan for his question. I know he has been big advocate of ensuring our energy system is supported and remains resilient and sustainable. Across government, through the Department of climate and energy, we are driving the delivery of renewable energy and solar PV. Through SEAI grants we have seen a huge uptake in the number of businesses that have adopted new technology in regard to solar PV and energy efficiency measures, which is very important. The SEAI does wonderful work to engage with businesses throughout the country. The cost of doing business advisory forum brings together decision-makers, enterprises and businesses, regulators and key agencies. We see work undertaken by the Commission for Regulation of Utilities, CRU, on how we structure the cost of energy in terms of transparency on what businesses pay for. We want to go further in how we regulate that market.

Sentiment score: 0.42

The challenges around rates are always contentious for small businesses and retailers in every town and city. It is not a function of the Department of enterprise to control that. Rates are a very important revenue stream for local authorities and central to delivering the required services. Deputy Dolan knows, as a former councillor, how important it is and how contentious it is for executive management to ensure it has this income stream. However, we do need to make better utilisation of how rates are proportionately absorbed by a lot of small businesses. I will undertake a review of the local enterprise offices to ensure there is more structure in place. We see rates abatement for many new businesses that may establish in towns, whereby a percentage of the full rate is forgone in the early years. That is very important. Rates are a devolved function of councillors and local government but we need to modernise them in the current era and see how we can support businesses in future.

Sentiment score: 0.22

The Government recognises that the adoption of AI and digital technologies presents a significant opportunity for Irish businesses to enhance productivity, competitiveness and innovation across all sectors of the economy. The recently published national digital and AI strategy, Digital Ireland - Connecting our People, Securing our Future, sets out a clear roadmap for Ireland’s digital and AI adoption and development in the years ahead. One of the key priorities in the strategy is fast-tracking enterprise technology adoption, particularly in SMEs, to boost productivity and competitiveness. Under the AI - Good for Business initiative, a national AI and digital awareness roadshow has been established in tandem with local enterprise office, LEO, regions. The roadshow, which is already under way, helps SMEs to understand the practical benefits of AI and digital tools, showcases real SME success stories, and highlights the LEO supports available. Having participated in one of these roadshows in Galway in April, it is very encouraging to see the high levels of interest and uptake of AI by SMEs. These supports include the Grow Digital voucher, which offers up to €5,000 to small businesses with under 50 employees to adopt digital tools like ecommerce, AI, cybersecurity, and website development. The digital for business consultancy scheme is a free service which connects businesses with expert advisers to assess needs and develop tailored plans. The European digital innovation hubs, EDIHs, in Dublin, Cork, Mullingar and Sligo offer hands-on support to help SMEs to understand, test and adopt advanced technologies. My Department recently allocated an additional €23 million in funding for these EDIHs to support SMEs in their uptake of AI and other cutting-edge technologies. We are building on existing supports and developing a targeted sectoral strategy to develop and drive AI adoption. Enterprise Ireland will also appoint an AI sector champion to spotlight AI opportunities, and the charter for digital inclusion will also encourage larger businesses to support smaller ones in adopting digital tools.

Sentiment score: 0.63

I thank the Deputy very much for his questions. I feel that one of the biggest barriers to AI adoption is not the reluctance to adopt the technology but is around awareness and understanding. This is why it is important that we get businesses engaged early in respect of how it can enhance their effectiveness, efficiencies and productivity. That is why we have the Grow Digital voucher, ensuring that experts can create digital plans and allow the technology to be embedded in a system. We are working on the AI observatory to make Ireland an international hub for AI adoption. That is very much part of the whole AI plan, and we really want to see SMEs as a success story in respect of the adoption of AI.

Sentiment score: 0.48

I would certainly like to see more investment and I support the call made by the Deputy for having more centres of excellence in the west of Ireland around AI adoption. It is part of the Government’s policy for balanced regional development. I know the project in Dexcom, in the Deputy's area, is significant and needs to be supported. The new AI office will ensure that innovation is very much balanced and that safeguards are put in place. We are very much focused on the digital skills and talent area. We have one of the highest graduate levels in science, technology, engineering and maths, STEM, and we need to capitalise on this in respect of how AI is adopted. I take the Deputy's point that early planning is very important for businesses, and that is why we need advice from experts to develop the associated skill set but also the plan for how to adopt the technology, having regard to how important it will be for businesses.

Sentiment score: 0.56

I propose to take Questions Nos. 146 and 149 together. FDI is a key element of our economic strategy, with investments by IDA Ireland client companies consistently generating high-skilled jobs nationwide. The Department works closely with IDA Ireland and other stakeholders to ensure a strong pipeline of FDI into Ireland. In light of the rapidly evolving global landscape and given the challenging international economic and trading environment, the Government is implementing a whole-of-government response to the challenges Ireland is facing, as set out in the Action Plan for Competitiveness and Productivity. The action plan strengthens Ireland's attractiveness for FDI by improving the business environment through measures on innovation, skills, infrastructure and cost competitiveness, ensuring Ireland remains a stable, competitive and future-ready location for global investors. Complementing this approach is IDA Ireland's own strategy, Adapt Intelligently: A Strategy for Sustainable Growth and Innovation 2025–29. This strategy identifies clear opportunities for Ireland to win investment in key growth areas such as digitalisation and artificial intelligence, semiconductors, health and sustainability. This strategy reaffirms IDA Ireland's focus on maximising opportunities for existing and new clients to invest in regional locations. Building on the excellent performance over the previous strategy, IDA Ireland is targeting 55% of investments in regional locations over the five years of the current strategy. Last year the Department launched Silicon Island: Ireland's National Semiconductor Strategy, which aims to make Ireland a global leader in semiconductors. The strategy promotes national policies and investments to further stimulate chip design and manufacturing capabilities. Later this year, we will also launch a national life sciences strategy, reflecting the level of importance of this sector to both foreign and domestic companies and the opportunities for its further development. Investment remains strong. A total of 323 investments were secured by IDA Ireland during 2025, representing a 38% increase on the previous year and the highest number of projects on record secured by the agency. Employment in IDA Ireland client companies increased by 1.5% year on year in 2025 to 312,400. The Government is fully aware of the competitiveness challenges this country faces as we continue to compete for FDI. We are taking the necessary steps to position Ireland for the future and we will continue to place cost, planning, energy and research and development at the centre of forward-looking policymaking. Competitiveness is a matter for all of Europe. The Government announced last week our Presidency priorities, which are centred on three key areas: competitiveness, values and security. My colleague, the Minister, Deputy Burke, will assume the chair of the EU Competitiveness Council in July and we will have an opportunity then to progress really important files to align with European ambition in this regard.

Sentiment score: 0.44

I thank the Deputies for their questions. I absolutely agree that competitiveness is not just for today; it is about preparing for the next decade. That is really important. That is why the Government is developing Enterprise 2035, which will be a long-term strategy focused on enterprise growth while also ensuring we have widespread job creation throughout the regions. It will be focused on skills, lifelong learning, innovation, access to finance, digital and green transitions, and building resilience against the uncertainty within our global economy. We have seen from global shocks how exposed we are. We have had the trade and tariff wars. We have had the challenge of supply chain disruption with the Middle East. I contend, in the knowledge that I am speaking to two rural TDs, that we are very much focused on ensuring the Government is investing but that investment benefits every region in the country. That is why over 57% of all new investments were based in regional Ireland. That is not accidental; that is a result of Government policy. It is also about targeting regional property development and the next-generation sites to ensure they are serviced and brought forward, but also that we have strategic planning from IDA Ireland and that IDA Ireland is considering all the four corners and not just at our main cities and thoroughfares. This is about ensuring the high-value sectors Deputy Dolan talked about and the life sciences and semiconductor sectors, which create high-quality jobs and that anchor within regions, bring considerable employment but also act as a catalyst for indigenous companies to service the big multinationals. That is very important. We need to continue to work across government to make sure that happens.

Sentiment score: 0.19

I again thank the Deputies for their questions and their support for continued investment in the regions of Offaly and Galway. The Minister is continuing to progress the next generation sites. That is important. He is progressing the west, which is important, initially. I hope we will have an announcement shortly in that regard. It is important that what we announce is serviced. There is a plan to ensure the site can be energised and there is access to utilities, critical services, etc. At Government level, that memo has been brought and approved, but not yet announced. With regard to regional balance, the action plan for competitive productivity is important for how we continue to deliver the skills and talent within the regions. Offaly has had recent success with Bord na Móna's collaboration with Amazon. It is important to build on tech, data centres and everything that goes with them for job creation. It is also important that the infrastructure and planning continue to evolve to meet the needs of the local regions and areas. There are various strategies that the Government is currently working on and that will be brought forward, such as the new national semiconductor strategy and the new life science strategy. There will also be investment in infrastructure through the national development plan. These are all important competitive measures that will set Ireland apart for future investments in our regions. We are competing globally. There is no denying that it has been a challenging period to attract more international companies here to Ireland. IDA Ireland is doing a great job and the Minister, Deputy Burke, is actively working with the agency on a day-to-day basis.

Sentiment score: 0.32

I thank the Deputy very much for the question. The SME test encourages policymakers across Government to apply the principle of thinking small first, to consider the impact any measures may have on SMEs and to mitigate any impacts where possible. This approach helps small businesses by ensuring new policies are designed in a way that supports SMEs and reduces unnecessary burdens on them. In May 2024, the Government committed to ensuring an enhanced SME test would 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 implementing the SME test to scrutinise every piece of legislation and regulation for its impact on SMEs. In addition, the Action Plan on Competitiveness and Productivity commits that all Departments will apply the SME test to all measures and in particular to policy initiatives where it is proposed to increase costs on small business and include the SME test in the Government handbook. As for impact, we are seeing a growing and more consistent use of the SME test. In 2025, 33 SME tests were applied by ten Departments. This compares with 26 SME tests applied by eight Departments in 2024. The year-on-year growth of almost 27% in the number of tests applied in 2025 is a good indication the enhancements, implementation groups and Government commitments are having an impact. The SME test is influencing outcomes and helping small businesses in a practical way. For example, in the development of additional powers for the Agri-Food Regulator, engagement identified a potential burden on smaller firms, thereby resulting in small businesses with up to 50 full-time equivalent staff being excluded from the scope of the legislation. In our Department, its application to the employment permits Bill identified options to mitigate impacts on SMEs.

Sentiment score: 0.26

I again thank the Deputy. The Minister, Deputy Burke, and I are looking at how we streamline the application processes for a lot of businesses and SMEs that take the opportunity to apply for grants. We have undertaken a simplification process to do with the LEOs. We are also looking at more systemic reform within the LEOs to make them more accessible to small businesses across the 31 local authorities. We will ensure that we engage with businesses to make sure their feedback feeds in to the enhancement process. That is really important. Overall, the SME test and the consistency of its application is really important. The Minister, Deputy Burke, has been very vocal in ensuring it is in the Cabinet handbook that all Departments that are bringing memos to Government on new legislation or initiatives undertake the SME test to look at any untoward cost impact on businesses. It has been effective in its implementation so far.

Sentiment score: 0.34

As I said in my earlier contribution we have seen real, practical outcomes in regard to its implementation, such as with the Agri-Food Regulator legislation. SMEs employing fewer than 50 staff were excluded from the initial analysis in the employment permit system. Processes were simplified and digitalised and fees were made more flexible. As for regulatory thresholds, we have looked at turnover limits, which were introduced to protect small businesses from compliance costs. These are really practical and meaningful changes that directly benefit small businesses. Through the enhanced framework, every memorandum for Government must include a completed SME test or explicitly explain why one is not required. That is a fundamental shift in how we protect small businesses from undue cost burdens and regulatory impact.

Sentiment score: 0.15