Alan Dillon

Overall sentiment: 0.18
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I thank the Deputy for his question. The Government acknowledges the enormous contribution of the retail sector to our economy in every city, town and village in Ireland. It plays an important role in employment, with over 220,000 people directly employed in retail. As I said in response to the previous Deputy, I meet quarterly with the retail representative bodies for all retailers right across the country. The Minister, Deputy Burke, and I are aware of the issues facing retailers. In addition, during the recent fuel price disruptions, officials in my Department engaged with the main multiple grocery retailers and focused on the impact on issues such as distribution, supply and home deliveries. As I said earlier, we are looking to identify practical actions that could be taken by the Government, or by industry itself, to support the sector, with particular emphasis on achieving sustainable jobs growth in the sector. The last meeting of the retail forum took place on 3 March. The topics discussed included retail crime, the deposit return scheme, environmental levies on single-use disposable cups and the national minimum wage. The Deputy might be aware that the cost of doing business advisory forum has been established. It will look at the inherent costs for many retailers who are finding it challenging in regard to the increase in labour, insurance and energy costs impacting them. Over the last eight weeks, we have met regarding the various thematic areas of concern. Most of those focused on planning, insurance, infrastructure, water services and wastewater and legal costs. We want real outcomes from this forum. The last meeting was only held last week. It was attended by the Minister and the two Ministers of State here, given the political commitment we have to try to support the retail sector.

Sentiment score: 0.20

I understand the concern raised by the Deputy, and I certainly do not underestimate the challenges many retail businesses face. That is why we have undertaken interventions in March and April in regard to the ongoing energy crisis we face. We have also looked at VAT changes, which will be introduced in July of this year, in respect of many cafés and small coffee shops. We have also looked at the targeted grants for local enterprise offices around cost reduction and digital adaptation. This is important. As I said earlier, we want to ensure that many retailers have consistency around cost certainty, simplification and where we can inform policy and inform regulators in regard to challenges or burdens being placed on retailers. This is why that exercise within the forum is not a box-ticking exercise. We want to look at the situation structurally and see where we can identify cost pressures and alleviate many of them to ensure the viability of businesses.

Sentiment score: 0.18

We are actively engaging with the retailers and the representative organisations. That is crucial. The charge may be that we are not listening, but we are listening. I think that is an important starting point. The Deputy hit the nail on the head when he said we want to have less talk and more action. This is exactly what we are looking to do, focusing on delivery. We want to ensure that the grants around green for business, digitalisation and energy reductions, working with the Sustainable Energy Authority of Ireland, SEAI, are targeting businesses and reducing their energy dependency. This is something we are talking to the Department of Climate, Energy and the Environment and the Minister, Deputy Darragh O’Brien, about, and the energy affordability task force will look at the structural costs around energy for businesses. On regulation as well, we have established the small business unit within our Department. That is about the thinking small business first principle, which is what we want to do. We have introduced the SME test within the Cabinet handbook. This is very much focused on assessing before approval the regulatory impact on small businesses of any new policy or legislation that comes forward.

Sentiment score: 0.29

I propose to take Questions Nos 130 and 134 together. As the Deputy said, the Government is under no illusion about the seriousness of the fuel price shock facing small- and medium-sized enterprises. We recognise that for many businesses fuel and energy are not optional costs. They are a core input that determine whether a business survives or fails. The Department has carried out a detailed sector-by-sector assessment and the evidence is clear that the impact is uneven but acute in particular sectors. In transport and haulage fuel is a direct and immediate cost and price spikes feed straight into cashflow threatening viability, particularly for small operators with limited margins. The agriculture and agrifood sector faces double exposure, with fuel and fertiliser costs along with transport and processing pressures. These costs hit hardest during peak seasonal activities. In construction fuel and energy costs are embedded in materials, logistics and machinery use. The impact here is real and can be built up over time. Beyond that, retail and hospitality SMEs are also facing sharp increases in energy bills that cannot simply be passed on without rising costs on competitiveness. This assessment has shaped a targeted Government response. Over March and April, we have introduced a substantial package of fuel supports, including VAT-inclusive reductions of 32 cent on the price of a litre of diesel, 27 cent on the price of petrol and 7.4 cent on a litre of green diesel. This is alongside a reduction on the NORA levy. Crucially, we have also deferred the planned carbon tax increase, providing immediate breathing space at a time of exceptional volatility. We recognise that some sectors also need more than just price relief. For this reason, we have introduced and increased the diesel rebate scheme to 12 cent per litre. We have also established a new road transporter's support scheme, with direct payments for haulage and coach operators, which will cost up to €40 million per month over the next three months. We have also introduced a €100 million fuel subsidy support scheme to assist farmers, contractors and fishers during peak fuel-use months. At the same time, the Government is looking at the structural costs to reduce further exposure altogether. This is being done through SEAI supports for businesses, which are being helped to cut energy demand permanently through audits, upgrades, renewable heat and microgeneration. Access to finance is also critical. It has been a barrier for many businesses to obtain the right finance to make these upgrades. The growth and sustainability loan scheme provides long-term, low-cost lending of up to €3 million, giving SMEs the capacity to manage shocks and invest through them. These immediate supports are also being reinforced through structural reform. I outlined earlier that the cost of doing business advisory forum is now finalising its report, which has been brought by SMEs, regulators and Departments through a policy process identifying real cost drivers and also outlining practical solutions and recommendations. While introducing immediate relief, we continue to monitor sharp rises in cost pressures to ensure that SMEs, jobs and our communities are protected in these uncertain times.

Sentiment score: 0.10

I thank the Deputies for their questions and contributions. I and my colleagues in the Department of enterprise have placed SMEs in all sectors front and centre. They are not being left behind. We fully understand the cost pressures many of them face. The memo the Minister, Deputy O’Brien, brought to Cabinet today was supported right across the Government. It outlined the types of measures that will be introduced over the weeks ahead. There are other specific measures within the construction industry. The sector was referenced today at Cabinet and more needs to be done for it. On what we are doing and have done, we outlined the assessment that was made precisely to support those sectors that needed the intervention. If we take transport SMEs - our bus operators and haulage companies – they will receive direct fuel-linked supports because fuel makes up a huge proportion of their costs and they have felt disproportionate increases. Agricultural contractors are also receiving monthly targeted payments because they are exposed during seasonal periods. That is very important. Many businesses in retail and hospitality will see energy relief in terms of their distribution and they will have a significant VAT reduction to 9% on 1 July. We want to continue to ensure that businesses are supported. Notwithstanding this, there is not a one-size-fits-all list of measures that the Government can introduce. The package currently stands at €750 million to support jobs, communities and SMEs right across sectors. This is targeted, evidence-based and an intervention that the Government wants to continue, and we are not finished there yet.

Sentiment score: 0.19

I certainly disagree that SMEs are being left behind. This is one of the most substantial packages across the European Union. It is all about supporting jobs and those who are most impacted but also ensuring they can absorb some of the cost increases that they are facing. We cannot cushion all the price increases. There is a reality here that many governments are trying to grapple with. A sum of €750 million is really substantial. The Minister, Deputy Heydon, met many of the pillar banks as recently as last week, advising them that these schemes are in place and that they would provide working capital to many of these businesses in the short term until they get this money into their bank account. That was received well. We want the scheme to be simple in nature. We are all about simplification and being fast and agile. I expect that would be the approach for many Department officials with regard to trying to get this up and running. Looking at the more structural interventions we need to reduce our reliance on fossil fuels, we are looking at a large investment, through price review 6, PR6, into the grid and infrastructure, in ESB Networks and EirGrid. That will ensure we have the renewable energy deployment required right across the country, that we have energy efficiency supports and that we are looking at large-scale industrial decarbonisation. That is backed by over €300 million in environmental aid. We all know we cannot continue to go from shock to shock and not build resilience into businesses. That is why the Tánaiste is working through the Department of Finance in looking at hybrid heat recovery pumps, hydrotreated vegetable oil, HVO, and other energy efficiency measures to reduce that burden either through tax measures or through grant supports and subsidies. They will have a meaningful impact for businesses across the country.

Sentiment score: 0.16

I thank the Deputy for his question. The Government fully recognises the significant harm caused by retail crime, which not only impacts retailers and retail employees but also has broader consequences for local communities and the national economy. Theft, organised shoplifting and associated antisocial behaviour are not victimless crimes and directly affect businesses' viability, staff safety and community confidence. I am acutely aware retailers are facing real financial losses, including rising insurance and security costs, and have deep concerns around the personal safety of staff, many of whom are working alone or at late hours. For small independent retailers in particular, a single incident can have a real impact on weekly profits, or worse. The issue is being taken very seriously by the Government. The programme for Government makes an explicit a commitment on retail crime, including the development of the retail crime strategy, which is being led by my colleague the Minister, Deputy O'Callaghan, in the Department of Justice, Home Affairs and Migration. Over the past years, we have met officials from both Departments and have engaged extensively with retailers and representative bodies at the retail forum to understand at first hand the scale, patterns and consequences of retail crime. Operationally, An Garda Síochána has established Operation Táirge to specifically target organised retail crime and Garda management has briefed the retail forum on its progress. I welcome the strong focus on intelligence-led enforcement but also the increased visibility of Garda members in crime black spots and the disruption of repeat offenders. From my Department's perspective, we are also acting to support retailers through enterprise supports. We will establish access to grants and have engagement on insurance and regulatory burdens, but that will be done through the cost of doing business advisory forum. We will continue to work on this matter and shortly will have the publication of the action plan on retail crime.

Sentiment score: -0.01

I thank the Deputy for his contribution. All retail workers deserve to go to work without fear and business owners deserve the protections of the livelihoods they have built. That is why we are very much focused on the retail crime strategy. It is well advanced and will include specific, targeted measures including prevention, enforcement and support for affected businesses. Operationally, An Garda Síochána has rolled out Operation Táirge, which has been successful. We have seen more disruption, arrests and prosecutions in many crime black spots, but we need to continue to redouble our efforts because retail crime needs to be confronted. It cannot be normalised and we need to work with retailers and their employees to ensure it is stamped out for good.

Sentiment score: 0.25

As I said, the retail crime strategy is being worked through at the Department of Justice, Home Affairs and Migration. It is being led out by the Minister, Deputy O'Callaghan. I have had extensive engagement with him and his officials. We have held a round-table meeting with many retailers, who were representatives of the retail forum. We want to ensure that strategy has concrete interventions and that these can be delivered within the term of the Government. It is a programme for Government commitment. We want to see this being worked through and we will, within the Department of enterprise, continue to support that over the months ahead.

Sentiment score: 0.24