956. Deputy Peter Roche asked the Minister for Enterprise, Tourism and Employment if his Department has given consideration to providing additional supports that are available to small businesses in Galway east experiencing increased operating costs and labour shortages; and if he will make a statement on the matter. [58885/26]

The Government recognises that the cost of doing business has been a significant issue for businesses in recent years, driven by wider inflationary pressures. The Government continues to actively monitor cost developments across all sectors of the economy including SMEs.

In June 2025, the Cost of Business Advisory Forum was established. This Forum brings together business representatives across various sectors including SMEs, alongside senior officials across Government departments, regulators, and State agencies. The Forum has met regularly over the last year with each meeting devoted to a distinct thematic area of concern to businesses such as energy and security of supply, insurance costs, planning and infrastructure regulations, water and wastewater services costs, legal costs, reporting and compliance regulations as well as banking, payments, and financial services.

Representatives reiterated the real-world impacts of sustained and increasing cost pressures and regulatory demands on day-to-day operations, investment capacity, and competitiveness, particularly for smaller enterprises. The final report and its recommendations, informed by extensive stakeholder input and cross government collaboration, will play a key role in shaping future approaches to supporting a competitive, resilient, and sustainable enterprise environment.

I am also pleased to inform that the Small Business Unit was established in my department last year, fulfilling a Programme for Government commitment. The Unit has been tasked with ensuring that the needs and issues of small businesses have a dedicated focus and are recognised and acknowledged across Government. There are a number of tools this unit and my department will use to enable its work.

First, through the 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 against those impacts where appropriate. In 2025, 33 SME Tests were applied by 10 Government Departments. This compares to 26 SME Tests applied by 8 Government Departments in 2024. The year-on-year growth of almost 27% in the number of Tests applied in 2025 is a good indication that the enhancements, implementation group and Government commitments are having an impact.

Secondly, access to grants and support programmes have been simplified through the launch of the National Enterprise Hub (NEH). The NEH is hosted and operated by Enterprise Ireland (EI) and has over 250 different supports for businesses from 32 Departments and agencies. Since launching in 2024, the NEH has handled over 14,000 enquiries. Monthly volumes have grown steadily, with 940 queries received in May alone, representing a 33% increase on the same period last year. The average response time has consistently remained under 24 hours. The Hub’s website has also attracted significant interest, with over 300,000 visits to date.

Third, the Small Business Unit has responsibility for the Local Enterprise Offices (LEOs). We are ensuring the LEOs are properly resourced to help small businesses. A review of the full suite of LEO supports is currently underway while my Department and EI have completed a review of applications for all LEO grant schemes to reduce the number of questions and simplify requirements.

Last year, as part of measures designed to bolster business resilience and support competitiveness, Government agreed to adjust the timeline for the progression to a living wage until 2029. The progression to a living wage, set at 60% of median hourly earnings, will be achieved via incremental adjustment to the National Minimum Wage. Our next steps in this regard will be informed by the recommendations of the independent Low Pay Commission. The Commission’s recommendations for the 2027 National Minimum Wage will be considered by Government in the context of prevailing economic conditions and as part of discussions on Budget 2027, as is standard practice.

Galway, like many other counties, is experiencing skills shortages in a number of sectors, reflecting both strong economic growth and very low unemployment levels across Ireland. My Department is constantly monitoring labour market developments and skills related issues. The latest CSO Labour Force Survey (LFS) data points to a very high level of employment across the economy and in Galway, with total employment at 2.8 million persons.

The most recent unemployment data, show an unemployment rate of 5.0% in June, relative to 4.6% a year ago. These are historically low rates of unemployment and consistent with effective full employment conditions in Ireland.

The labour market is tight given the very high level of employment and Ireland like many advanced economies has to tackle skills shortages.

The Expert Group on Future Skills Needs (EGFSN) operates with the Department of Enterprise, Tourism and Employment and it carries out detailed studies on skills needs across specific sectors. I know there are a number of developments underway which might help with such assessments such as the plans to set up a National Skills Observatory. Ireland’s National Skills Council is also doing a lot of work in relation to labour market needs.

I would like to assure that the Government and my Department have been and are committed to backing businesses and will ensure the actions aimed at supporting small businesses in the Programme for Government are implemented in an effective and timely manner.