Hoteliers and small firms set out priorities for new Enterprise Minister

Reacting to the announcement, David Broderick, SFA Director said: “The SFA congratulates Minister Burke and is eager to build on the positive engagements that we have had with the Minister and his team in the past year. 

Hoteliers and small firms said permanent VAT cuts and a temporary PRSI rebate for small businesses should be priorities for the new Minister for Enterprise, Trade and Employment Peter Burke.

The Small Firms Association (SFA) said it is confident that he will continue his "positive collaboration" with the small business community in the months and years to come and said they were encouraged by some of the measures in the Programme for Government aimed at assisting the small business community.

"Most notably, the proposed establishment of a small business unit in the Department of Enterprise and Employment and a commitment to publish Enterprise 2035 which is a long-term ambition for enterprise growth and job creation over the coming decade, David Broderick, SFA Director said.

“Much of the small business sector is struggling with spiralling business costs in recent years. With the National Minimum Wage increasing again in January, and with the incoming introduction of Auto-enrollment, many businesses will be facing difficult decisions to ensure viability over the next few months. This is why the SFA is calling for a temporary PRSI rebate for small businesses be put in place a soon as possible," he said.

The SFA said rising business costs are the main concern for small businesses across the country, citing a survey which found that 83% of small businesses have experienced rising costs in the past 12 months.

The research also showed an estimated increase of 16.6% in average business costs during that time. In addition, 57% of businesses say that labour costs have contributed to rising costs.

Hoteliers have also welcomed Mr Burke's appointment, with Irish Hotels Federation (IHF) president Michael Magner saying: "He has been a strong supporter of Irish tourism during his career to date, and we look forward to continuing to work with him and his colleagues in Government to address the challenges now facing our industry."

“With the right policies in place, we believe that tourism and hospitality has a bright future ahead.” says Mr Magner.

The IHF president added that Minister Burke will have a "pivotal role" to play in creating a positive business environment for enterprises throughout our sector and ensuring tourism remains at the heart of Government economic policy.

"A permanent reduction in the rate of VAT for food service businesses would be a very welcome and important first step. This would greatly assist the many vulnerable food-led businesses that have faced an uncertain future and mounting cost challenges in recent years," he said.