Written answer
Business Regulation
270. Deputy Seán Ó Fearghaíl asked the Minister for Enterprise, Tourism and Employment the key measures taken in the area of business regulation and simplifying administrative burdens since January 2025; his priorities for same for the rest of 2026; and if he will make a statement on the matter. [53469/26]
Comment on this
In July 2026, I outlined my Department’s priorities for Ireland’s Presidency of the Council of the European Union which centred on building a more competitive, innovative and resilient European economy. Reducing administrative burden and improving the business environment will be a cross-cutting priority. My Department will drive forward simplification measures to ensure EU rules are proportionate, effective and supportive of enterprise.
The Cost of Business Advisory Forum was established in June 2025 delivering on a commitment in the Programme for Government. The Forum’s primary objective has been to examine key cost drivers and regulatory frameworks such as energy costs, insurance and legal costs, water and wastewater services, infrastructure and planning, tax administration and regulatory compliance, and assess the impact of rising costs and regulatory pressures on businesses in Ireland.
The February 2026 meeting of the Forum focused on tax administration and regulatory burdens with the Forum members highlighting that excessive and overly complex reporting and compliance obligations have a cost to businesses. Members suggested that to guarantee the stability, robustness and competitiveness of the Irish economy, several areas would benefit from the streamlining of regulation and compliance. The Forum's consultative phase has now concluded and the independent report and its recommendations will be presented to Government at the end of July. These recommendations include actions to mitigate rising costs of business and simplify regulation, ensuring that businesses navigating today’s economic landscape remain competitive and resilient.
The Action Plan on Competitiveness and Productivity was published in September 2025. It is also a commitment in the Programme for Government which focuses on the economic areas that fall within our domestic sphere of influence. The Action Plan contains 85 actions for enhancing our competitiveness and productivity performance and are set out across six themes with one of them being ‘regulating for growth and controlling costs’. This theme aims to ameliorate the regulatory costs faced by Irish businesses. Ireland lags behind the average of the five best performing OECD countries, particularly in the area of licences and permits. Delays stemming from the courts system in relation to dispute resolution have also been flagged as a drag on competitiveness.
In particular, the Action Plan includes a range of measures to be taken to support the development of a more effective regulatory system, which seeks to support sustainable economic growth while controlling overall cost levels. One such measure is the introduction of a “Red Tape Challenge across Government to significantly reduce regulation and administrative burden for SMEs, reflecting the European Commission’s simplification agenda”. Work on the red tape challenge is underway and progress will be closely monitored.
Implementation of the Action Plan is at an advanced stage. Officials from my Department provided an update on progress at the Competitiveness Summit on 13 July. For priority actions, 65.4% have either been implemented or are on track, while 34.6% are partially implemented and considered in progress. For non-priority actions, 42.4% have either been implemented or are on track, and 49.2% are partially implemented and in progress.
There is also an ongoing commitment to ensuring that the regulatory environment is proportionate and fit for purpose. This includes the conduct of Regulatory Impact Analysis and the systematic application of the SME Test, which has been designed to invite consideration of less stringent compliance requirements for smaller companies, where appropriate and proportionate.
This year, my Department established a Small Business Unit which has been tasked with ensuring that the needs and issues of small businesses have a dedicated focus and are recognised and acknowledged across Government. Work is also ongoing to streamline the business supports landscape, including simplifying access to grants and support programmes through the National Enterprise Hub.
Offices and agencies under my Department’s aegis have been asked to reflect on their processes to consider how they may be simplified without compromising policy objectives. I urge all government departments and agencies to follow suit and eliminate unnecessary administrative burdens that hinder enterprise growth.
In terms of legislative change, the Companies Act was updated through the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 which introduced a range of practical reforms consistent with ensuring that Ireland’s regulatory framework provides flexibility and is fit for modern business operating in an increasingly digital and virtual environment. Work is also ongoing to modernise and reform a range of other legislation including the Co-operative Societies Bill and legislation relating to Limited Partnerships and Business Names.
Simplification and burden reduction remains a key issue at EU level with a view to improving EU competitiveness and ensuring there are not disproportionate burdens on business, particularly SMEs. The reform agenda is being strongly driven by EU leaders with the European Council calling for a “simplification revolution” by ensuring a clear, simple and smart regulatory framework for businesses and reducing administrative, regulatory and reporting burdens, in particular for SMEs. To date, the European Commission has published 12 simplification Omnibus packages, across a range of policy areas, with further proposals expected in 2026.
I would like to assure that my Department have been and continue to be committed to backing businesses and will ensure the actions aimed at supporting businesses in the Programme for Government are implemented in an effective and timely manner.