1079. Deputy Peter Roche asked the Minister for Enterprise, Tourism and Employment the additional supports being considered for independent retailers in Galway East facing increased labour, insurance and energy costs; and if he will make a statement on the matter. [59128/26]

The Government recognises that the cost of doing business, including labour, insurance and energy costs, 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 independent retailers.

In June 2025, the Cost of Business Advisory Forum was established. This Forum brings together business representatives across various sectors including retailers, 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.

Second, 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.

As the Deputy will be aware, responsibility for Insurance Policy lies with the Minister of State with special responsibility for Financial Services, Credit Unions and Insurance in the Department of Finance.

Insurance costs remain a priority for Government. Building on previous reforms, in July last year we published the new ‘Action Plan for Insurance Reform 2025-2029 - A Stronger Market, a Fairer Future’. Shaped by feedback from over seventy submissions from a wide range of stakeholders, the new Action Plan will deepen reforms Intended to improve affordability, availability and transparency in the insurance market.

My Department under the Action Plan is progressing a range of reforms to improve the personal injuries system. Key measures include strengthening the powers and remit of the Injuries Resolution Board, with proposals under consideration to support the greater use of mediation, explore the remittance of cases back to the Injuries Resolution Board when new evidence emerges during litigation, and to consider allowing legal costs for claims. In parallel, research is being undertaken by the Injuries Resolution Board to identify barriers to the acceptance of awards, and they will also evaluate the potential of a unique identifier for personal injury cases to support better data integration and consistency across resolution channels.

Engagement with insurers and business stakeholders will continue through the Office to Promote Competition in the Insurance Market. The Government will examine award levels for minor and moderate injuries, including exploring the feasibility of introducing award caps and a dedicated process for minor soft tissue injuries. Building on the Review of Compensation for Minor Soft-tissue Injuries in Ireland and the United Kingdom Report I published in 2025, a more extensive second phase of research on personal injury awards is scheduled for completion in early 2027 to inform future reviews of the Personal Injuries Guidelines.

Significant progress has already been delivered across Government on priority actions in the plan, including:

The introduction of the Motor Transparency Code in March 2026;

Passage of the Right to Be Forgotten legislation through all stages of the Oireachtas;

Progress the Minister for Justice, Home Affairs and Migration has made in relation to the Judicial Council Amendment Bill 2026 and the drafting of regulations for Pre-Action Protocols; and

The costs of injury claims have long been recognised as a contributory factor in insurance premiums for businesses and consumers. The IRB 2025 Annual Report shows that the volume of injury claims is down 35% since 2019, with the median award value reduced by 24% since 2020. These reductions demonstrate the impact of the reforms Government has introduced in recent years.

The Cabinet Committee Subgroup on Insurance Reform Subgroup, of which Minister of State Smyth and I are members, is expected to convene in September 2026 and will continue to drive the implementation of the Government's insurance reform agenda.

The Government is conscious of the pressures this energy market volatility is placing on businesses. Over March and April, the Government introduced a substantial package of fuel supports, including measures such as reductions in fuel duties and targeted supports for sectors like transport, agriculture and fisheries, aimed at easing cost pressures and mitigating the impact of rising fuel prices on the wider economy. This demonstrates a responsive and targeted policy approach to addressing acute cost pressures while supporting broader economic stability. We also recognise the importance of reducing Ireland's exposure to such shocks. This underlines the need to accelerate the transition towards greater energy independence. Significant investment is being made in renewable energy, electricity grid infrastructure, and energy efficiency, with reducing reliance on fossil fuels central to improving resilience against current and future energy price shocks.

The Sustainable Energy Authority of Ireland administers a suite of supports aimed at reducing energy demand and costs. Through the “Easy Wins” campaign, businesses are being encouraged to adopt practical, low-cost measures with rapid payback, including energy management training and energy audits. Financial supports are available through Rapid Approval Grants, such as the Business Energy Upgrade Scheme and the Non-Domestic Microgeneration Grant, as well as Tailored Support Grants including the Support Scheme for Renewable Heat, the Community Energy Grant, and supports for excellence in energy-efficient design.

More broadly, the Government is addressing business costs through the Action Plan on Competitiveness and Productivity, published in September 2025, which sets out 85 actions across six themes to strengthen national competitiveness. 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.

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.