Written answer
Small and Medium Enterprises
78. Deputy Eamon Scanlon asked the Minister for Enterprise, Tourism and Employment the measures his Department is considering to address the increasing cost of doing business for SMEs in the North West region; and whether a regional competitiveness package is being considered for businesses facing higher transport, energy and labour costs due to their peripheral location. [66597/26]
Comment on this
The Government recognises the cost pressures facing SMEs, including those operating in the North-West region. Balanced regional development is a Government priority, and my Department and its agencies contribute to this through the Regional Enterprise Plans, enterprise agency supports and targeted regional enterprise funding.
The North-West Regional Enterprise Plan, covering Donegal, Sligo and Leitrim, focused on entrepreneurship, renewable energy, climate action, skills development, cross-border cooperation, and attracting investment and high-value employment. Since 2017, eight projects in the North-West have received over €17.5 million through the Regional Enterprise Development Fund and Border Enterprise Development Fund, while a further six projects have received approximately €1.88 million under the Smart Regions Enterprise Innovation Scheme.
My Department is also developing a Regional Enterprise Framework Statement to align regional enterprise priorities more closely with the Regional Spatial and Economic Strategies. This will strengthen the links between enterprise development, skills, infrastructure and wider regional planning.
At national level, the Cost of Business Advisory Forum was established in June 2025 as part of the Programme for Government’s commitment to reduce business costs and alleviate regulatory burdens. The Forum’s Final Report and its 63 recommendations were approved by Government on 22 July 2026 and published on 28 August 2026.
Already, the work of the Forum is informing Government policy development, for example, its recommendations are helping to inform the work of the National Energy Affordability Taskforce, chaired by the Minister for Climate, Energy and the Environment, which is examining energy costs for businesses of different sizes. In addition, I am engaging with the Tánaiste and Minister for Finance in advance of Budget 2027, and issues identified in the report are being taken into account as part of those discussions.
Reducing unnecessary administrative burdens on businesses remains a priority. In 2025, I updated Government on my Department's progress in reducing red tape and simplifying processes for small businesses. Since August this year my Department is working with the Department of the Taoiseach on the Red Tape Challenge initiative, which aims to further reduce regulatory burdens for SMEs by asking Department, their associated agencies and regulatory bodies to audit permit and licensing frameworks.
More broadly, the Action Plan on Competitiveness and Productivity was published in 2025 and implementation of its actions is continuing. Taken together, this work supports the Government’s efforts to address business costs, improve competitiveness and strengthen the enterprise environment, including in the North-West region.