These are economically turbulent times globally and with a potential trade war looming, businesses are very unsure about their futures and their survival over the next couple of years or even months. I ask for an update on the commitments in the programme for Government to address the regulatory and cost burdens for SMEs. What is the status of the small business unit in the Department of Enterprise, Trade and Employment? From my engagement with businesses in Louth through the Dundalk and Drogheda chambers of commerce, I know that this is of utmost concern and it is what I am asked about most often. Considering that many of our SMEs are involved in export, what supports are being considered to assist them in a potential trade war?

I thank the Deputy. She is right. I hear this feedback a lot throughout the country, as she does in County Louth. We have taken a number of measures to try to make some progress. We have now brought in what we call an SME test on all Cabinet memos. Before any Minister brings an idea to Cabinet, it has to go through the SME test to see what the impact on small businesses will be. The Minister of State, Deputy Dillon, is leading for us on that. The process to establish the small business unit for enterprise, tourism and employment in the Department of Enterprise, Trade and Employment is under way. The purpose of that is to ensure we have a real focus on the policy needs of small business.

We intend to prioritise competitiveness and simplifying regulation at EU level and during our Presidency. The Government intends and has agreed to reduce the VAT rate on hospitality in the budget. We keep an open mind on how we can support sectors of the economy in any trade war. We will have our trade forum meeting, at which industry, including small businesses, will be represented, on Friday.