Will the Minister outline the measures he is taking to ensure small- and medium-sized businesses can access affordable credit and avoid being burdened with high borrowing costs? Access to affordable credit is a significant barrier to our SMEs that want to expand and grow their market share. As they try to navigate their way around all of the challenges they face, they need access to credit.

I thank Deputy Conway-Walsh for this very important question. I firmly commit to ensuring that small- and medium-sized businesses have access to affordable credit. My Department has developed several loan guarantee schemes, the first in 2012, that have enabled participating lenders to offer loans at interest rates below their standard commercial terms.

The scheme currently open to SMEs is the growth and sustainability loan scheme. This is a €500 million initiative developed by my Department and the Department of Agriculture, Food and the Marine, underpinned by a partial guarantee from the European Investment Bank Group and the Strategic Banking Corporation of Ireland, SBCI. The SBCI also operates the scheme. This scheme offers long-term loans ranging from €25,000 to €3 million, with terms of up to ten years, to SMEs, farmers, fishers, and small mid-caps. Loans of up to €500,000 are available on an unsecured basis, making finance more accessible for SMEs.

Interest rates under the scheme are determined by each participating finance provider, in accordance with its own credit policies. However, all rates must reflect the benefit of the EU-backed guarantee and SBCI support, ensuring they are below standard commercial lending rates. In practice, participating lenders offer discounts ranging from 1% to 4.86% compared to their equivalent SME loan rates, making credit more available. A minimum of 30% of the scheme's lending is targeted at environmental sustainability and climate action, with the remainder supporting productivity and competitiveness. Loans for climate-related purposes also benefit from an additional interest rate discount.

As of the end of June, 1,930 loans had been approved, amounting to €432 million, by my Department and the Department of Agriculture, Food and the Marine. We are negotiating with the EIB Group and the SBCI on the potential to extend the duration and expand the capacity of the loan. I plan to bring proposals to the Government in the next three months.

I welcome these initiatives but last year, in 2024, we saw no real growth in Ireland's SME bank debt, with continued low demand from applicants and an overly cautious approach to risk from the banks. SMEs with any form of credit challenge find it difficult to access credit from the traditional financial institutions, even more so since the departure of Ulster Bank and KBC from the market. These are the sources where most small and retail businesses go to look for credit. Despite what the Minister says he is doing to make credit more accessible for SMEs, a recent report from IBEC revealed that 63% of SMEs still consider the application process to be overly complex and lengthy. Many SMEs do not have the knowledge and expertise to navigate the overcomplicated process of securing finance, even more so now that the banks have automated their application processes and removed all human interaction with local bank managers who would have traditionally advised and assisted a struggling applicant.

To go back to the evidence, if we look at the first scheme I referenced, which was the growth and stability loan scheme, we have at this point in time almost used up the €500 million allocation. This demonstrates that SMEs are using it and drawing it down. We also increased the Microfinance Ireland loan scheme for our smaller SMEs, up to €50,000 from €25,000, and it is supporting approximately 12,000 jobs in the economy. We have had a succession of schemes, including the Ukraine guarantee scheme, the future growth loan scheme and the Brexit loan scheme. A huge amount of low-cost finance has been provided. We are also renegotiating to extend the €500 million and increase its capacity and keep it competitive.

I also point out the Department of Finance recently conducted a survey of SMEs and only 6% of them cited the cost of finance as an issue in terms of getting support. We are reducing the conditionality of all schemes to make it easier for SMEs to go through the application process. This is very much to the forefront of my mind in doing things simpler, lighter and faster.

I welcome this. The problem sometimes is that many of these systems are automated and somebody may not have an absolutely clear record. There can be many reasons for this which are explainable, and at one time people could have gone in and sat down with the bank manager to explain the reason something happened and they could come to an agreement. This was also the case for people with good creditworthiness. This is something that needs to be looked at.

With regard to the length of time it can take to draw down credit, I wonder whether any analysis has been done on situations where all of a grant is drawn down by one cohort of people while another cohort of people, such as those coming to our constituency offices, find it very difficult. We need to be conscious of this and ensure we bring all businesses with us and ensure the sustainability of all businesses.

I am very happy to work in this regard. The critical thing I am trying to do is make these supports available to our SMEs and family businesses, which employ two thirds of the people throughout our economy. I am very aware that the average SME does not have a finance director or a HR director. A lot of the great work is done around the kitchen table. This is why we are working with the centre of excellence at Enterprise Ireland and those who craft the schemes so we are reducing red tape and the administrative burden. Particularly for some of the lower-scale grants, such as with regard to digitalisation or sustainability supports, which can be less than €10,000, we should be able to turn them around in 24 hours. This is my target for the agencies. We are working to deliver this. There are other methodologies we can bring in to get efficiencies and ensure we are really supporting them at the forefront. The cost of doing business advisory forum is working with a lot of the regulators and their interoperability among the sectors. What they ask of various applicants may already have been asked in other areas and we want to get a floor under this and reduce the administrative burden.

In the Action Plan on Competitiveness and Productivity the Minister outlines progressing the interests of Irish SMEs in the dual-use area, specifically citing defence research and development and the European Defence Fund. Is the Department equipped to deal with an increase in licence applications and the due diligence required to facilitate the dual-use licence system?

I thank Deputy Gibney for her question. The Department is the national competent authority with responsibility for the control of exports of dual-use and military items under EU and national legislation. The primary focus of export controls is not to block trade or exports but to enable the free movement of legitimate goods while ensuring that certain sensitive categories are subject to appropriate regulation. These controls are designed to manage risk, uphold international peace and security, and ensure Ireland's compliance with its international obligations.

The bulk of dual-use exports from Ireland are mainstream business ICT products, both hardware and software, including networking, data storage and cybersecurity. They are categorised as dual-use items as a consequence of the fact that they incorporate strong encryption for ICT security purposes. All export licence applications are considered by departmental officials in accordance with criteria set out in the relevant dual-use and military EU and national regulations, and with Ireland’s international obligations and responsibilities as a member of non-proliferation regimes and export control arrangements. Each application is assessed individually, considering the nature of the items, the destination country, the identity of the end-user and the intended end use. The Department also consults with the Department of Foreign Affairs and Trade on each application.

Under the Action Plan on Competitiveness and Productivity, the Department of Defence has committed to continuing to progress the interests of Irish SMEs to facilitate growth and ensure deeper engagement in the commercial dual-use area, both nationally and at EU level. I understand from my colleague, an Tánaiste and Minister for Defence, that while his Department will look to develop a more structured approach to enhance engagement with Irish SMEs in the area of dual use, the methodology around this support is being developed.

I thank the Minister of State for the detail. My key concern in this area is that while the Department continues to emphasise dual use as including perfectly legitimate ICT products, it also emphasises military applications and plans to extend this industry in Ireland. I welcome that applications are risk assessed but with this emphasis on military and defence applications of these goods there is a natural increase in risk and in the number of applications that need additional scrutiny to ensure the end use presented to authorities is appropriate and accurate.

Figures from the Minister of State's Department reveal that the value of these exports has trebled since 2021 and that the number of licences went up by 28%. How is the Department addressing the need to increase our regulatory capacity to ensure that Irish companies are not negligently or purposefully selling these dangerous goods, which can then be used to commit crimes such as those war crimes we are now seeing in Gaza and Ukraine?

I thank the Deputy for her question. I know she has raised this matter on a number of occasions before. I too take this risk incredibly seriously. I will speak to officials in the Department in detail in this regard.

The Department of Defence currently only facilitates Irish SMEs during their initial interaction with initiatives such as the European Defence Fund. This interaction is primarily administrative in nature, assisting entities to navigate the bureaucratic requirements associated with the collaborative EU programmes. My officials will continue to engage with current and potential exporters regarding their responsibilities under export control including via a webinar being hosted this morning to raise awareness among relevant stakeholders of their responsibilities under export control legislation. The bulk of dual-use producers from Ireland are, as I have said, mainstream businesses producing ICT products and so on. Their applications are assessed individually. The Department of Defence currently only facilitates Irish SMEs during their initial interaction with initiatives such as the European Defence Fund.

As I said at the outset, I take these risks incredibly seriously. I am keeping a very close eye on this and I am working collaboratively with the Minister for Defence on the issue.

I hope that is the case because, even in the previous answer to Deputy Conway-Walsh, we hear this emphasis on streamlining and making more efficient the administrative burden on businesses. However, this is a really serious area and one that needs to go in the other direction. In data released to me in answer to a parliamentary question, figures showed significant increases in the value and number of export licences granted since 2021. The Government's competitiveness plan indicates that the Government wants more dual-use products sold abroad by Irish companies, directly linking the productivity and competitiveness of Irish SMEs to funds for military research and development. Logically, that means more and riskier dual-use exports to be assessed for licences. How can any Department do more work and more complex work without additional resources allocated to ensure that everything is above board? When it comes to this conversation, we keep hearing about chips and ICT products but these goods can also be parts for drones such as those that are attacking humanitarian workers on the Sumud flotilla and civilians in Gaza right now. It is an incredibly serious topic and I and others need reassurance that the Minister of State's Department is taking its duties regarding this matter seriously.

Applications for dual-use licences in respect of exports to any country are assessed on a case-by-case basis in line with the assessment criteria set out in the regulation and the eight criteria set out in the European Council Common Position 2008/944/CFSP defining common rules governing control of exports of military technology and equipment. In addition, my officials seek real-time geopolitical observations from the Department of Foreign Affairs and Trade in respect of any applications. These views inform the final decision to grant or deny a licence. The assessment process is rigorous. My officials carry out a series of checks to ensure, insofar as they can, that the item to be exported will be used by the stated end user for the stated end purpose and will not be used or diverted for any other purpose.

The previous question is a very important one. Will the Minister outline the means by which the Department is simplifying access to existing grant and support schemes for our SMEs and the steps he is taking to reduce the administrative burden for those businesses? The administrative burden on small and medium-sized enterprises is a major impediment for business owners around the country at the moment, sucking vital resources away from businesses that could be better deployed elsewhere. By no means am I suggesting reducing the needed scrutiny in the context of the previous question.

I thank Deputy Conway-Walsh for her question. I am happy to inform the Deputy that my Department is making significant progress in simplifying the application process for enterprise grants, particularly those administered through the local enterprise offices and Enterprise Ireland.

Following instruction from my Department through the recently established small business unit, the Enterprise Ireland LEO centre of excellence has completed a comprehensive review of application requirements for each of the LEO grants. This has resulted in a significant reduction in the number of questions across multiple grant schemes. For example, the number of questions regarding the priming and business expansion grants has reduced by 47%, the green for business grant by 30% and the feasibility grant by 28%. Work has already commenced with the online application service provider to make the recommended changes and to merge the application processes for the digital for business and green for business consultancies with the respective follow-on grants: grow digital and the energy-efficiency grant.

Enterprise Ireland is also driving this process through major initiatives. The service delivery transformation programme will introduce a new operating model, along with advanced technology and data capabilities, to deliver service excellence. The start-up Ireland programme is focused on creating a better journey for start-ups and entrepreneurs, strengthening ecosystem co-ordination and enhancing both national and international connectivity. Together, these programmes will help to deliver greater impact and support for Irish enterprise.

Work is also under way with the National Enterprise Hub to examine how it can be utilised to reduce the administrative burden for SMEs applying for Government supports. Scoping work is taking place to identify common data points in applications, starting with agencies under the control of my Department, and to consider how the National Enterprise Hub can be further developed in line with the "once-only" principle of data provision.

The issue is that we still have too many people coming into our constituency offices who cannot get the help and support they need to access grants. I hope that any grants announced in the budget will be thought out properly. The way to do that as regards the design of the grants is to have small businesses involved at the design stage of these grants because they will be able to see what impediments may arise that would prevent them from accessing the grants. You often find that the businesses that least need a grant can get it while those that really need it cannot access it either because of the criteria being too tight or the administrative burden being too large. This significant time and effort could be redirected to other business and substantial costs could be saved if compliance and regulations in public authority reporting could be eased. Again, I am in no way suggesting deregulation. We only have to look at the issue of defective concrete blocks to see the results of deregulation in this country.

We are not really talking about regulation here but about the administrative procedures for small businesses to get the funding they need to develop online platforms, to become more sustainable and to meet their objectives. What we want to do is to make that process easier. This is not a significant risk to the taxpayer. Many of these grants are particularly small and many genuine enterprises just do not have time because time is their scarcest resource. We are working through the process with Enterprise Ireland. We have made significant progress on our LEOs and the users should now be seeing the benefits of that. On design and policy, our SME test has now been brought to our State agencies. We are really looking at thinking small first. How do changes, whether a statutory instrument or the design of a scheme, impact on the smallest businesses that do not have the resource base to go through very significant administrative processes? We are doing a huge amount of work on that. That is on the policy side. That is how you change how the scope is determined across government.

Will the Minister think about this? In Sinn Féin's manifesto and over a number of years, we have envisaged the establishment of a mol gnó, a new Irish enterprise agency focused specifically on scaling existing Irish businesses. This would be a strong agency for non-export focused start-ups and established companies. It would specifically cover the void in support from existing agencies like Enterprise Ireland and the IDA. Enterprise Ireland and the IDA do a really good job but we are not using the space we have at the moment to address over-reliance on foreign direct investment. Although we absolutely need and thrive on foreign direct investment, we have to bridge that gap.

In setting up a new agency – I hate the idea of a new agency – we must ensure it is something with specific targets and aims for that area to increase our indigenous businesses rapidly in the space they have been given.

I appreciate the feedback and ideas because we all need ideas to come forward. Along with Enterprise Ireland and the LEOs, I am particularly focused on making things more accessible and trying to reduce the administrative burden. I am trying to establish a new accelerator programme for our country. The Deputy will be aware of PorterShed in Galway, Dogpatch Labs in Dublin, the NDRC and issues around it. We need to ensure that we have a stable landscape for those businesses that are part of the indigenous economy so that they can thrive. It is to be hoped we can bring that forward through the capital allocations we have received.

A new national accelerator programme will bring those strands together and ensure that prime space is kept for businesses which need it in order to give them the opportunity to grow and scale. We know at this point in time that we are very challenged by the US. The EU has been left behind in the growth and scaling of companies, in particular on the tech side. We are far behind at this point in time and have a huge amount of work to do in this area. I am also open to ideas from colleagues and look forward to working with the Deputy.

In the run-up to last year's general election, the Government promised to abolish subminimum wage rates for young workers. When will it do it? Will this turn into another broken promise to workers and young people, alongside a week's sick pay and the promise of a living wage?

I am not aware of making any such promise. I want to be very clear on that. The National Minimum Wage Acts allow for lower or subminimum rates of the minimum wage for employees aged 20 years and younger. Those aged less than 18 years can be paid 70% of the full minimum wage rate, while those aged 18 and 19 years can be paid 80% and 90%, respectively, of the full rate. As the Deputy is aware, the Low Pay Commission recommended the abolition of subminimum rates in March 2024. The commission highlighted in its report that this is a very complex issue. It said the Government will need to give its findings and recommendations detailed consideration and deliberation and highlighted the potential need for the Government to take its own legal advice on the matter.

It is important to acknowledge the challenges the enterprise sector has faced over the past number of years. We know that the use of subminimum youth rates is largely concentrated in the accommodation, food and retail sectors, and these sectors have reported facing considerable cost pressures. As part of the measures designed to bolster business resilience and support competitiveness, earlier this year the Government agreed to defer a decision on the subminimum rates until 2029. The decision should be considered in the context of the recent significant increases in the minimum wage which show that the Government continues to commit to fair wages for the lowest paid workers in our economy, but also in the context of the Government's introduction of a range of measures to assist workers, including a statutory sick pay scheme, the right to request remote working and other supports.

It is also important to highlight the very real progress we have made in raising the national minimum wage over recent years. Since 2020, the national minimum wage has increased by 33.7%, from €10.10 to today's rate of €13.50. In 2024, there was a significant uplift of 12%, or €1.40, in the minimum wage. This year, the minimum wage increased by 80 cent, an increase of over 6%. These increases were well ahead of inflation and projected wage growth in the economy and have brought about substantial and real wage growth for the lowest paid workers in our economy.

Did I hear the Minister correctly? Did he say he will not do it until 2029? Is that what he said?

This is not an over and back exchange. The Deputy can make his contribution.

It is an over and back exchange. That is the nature of the format. The Minister said the rate would not be changed until 2029 or he would consider it at that stage. I ask him to clarify that. It is incredible. We introduced a Bill to get rid of this legalised superexploitation of young people in 2022, which was passed on Second Stage. It would have gotten rid of the rate in 2023, with a timed amendment. The Government said at the time that it had to wait for a report from the Low Pay Commission. The report came out in 2024 and was absolutely clear and unanimous that the Government should get rid of the superexploitation.

At that stage, I remember at a committee meeting the Government said it would produce an economic impact report. Last September, the committee was told it would take six to nine months, but there is still no sign of the new economic impact report. The Government is kicking the can down the road. The Minister is now saying that this will now be changed in 2029, and will not even give a commitment to do it. A 19-year-old cannot pay 90% of their rent to their landlord. An 18-year-old cannot pay 80% of their grocery bill. A 17-year-old cannot pay 70% of the price of petrol. It is scandalous.

The Government's commitment is to defer the decision to 2029. We will publish the data behind that shortly. It should be noted what the commission actually said on subminimum rates. It is not exactly what the Deputy quoted. It stated:

The Low Pay Commission recommends that sub-minimum wage rates for employees who are 18 and 19 years of age should be abolished no sooner than 1 January 2025.

Contrary to what the Deputy said at the very outset, I did not make any commitment to abolish the subminimum rates. It is important to be aware that approximately 5% of 19-year-olds receive subminimum rates. The majority of workers in those cohorts are above the level of the minimum wage. Critically, the increases of recent years have been ahead of wage growth in the economy and ahead of inflation. That is combined with support from the statutory sick pay scheme, an increase in the minimum wage, banning zero-hour contracts, the introduction of legislation on tips and the introduction of auto-enrolment from 1 January.

In another question, the Deputy asks about increasing the minimum wage to €17, an increase of approximately 30%, which is six times the growth rate of wages and our economy. When combined with auto-enrolment and other increases, it would leave this country without any jobs. Deputy Murphy does not have an iota of what it takes to run the enterprise economy. He does not know what it means to employ people. He does not know the value of the 2.81 million people who are going to work in our country every single day. The policies the Deputy brings forward would close down the enterprise economy.

The Minister's bluster will not disguise what is a viciously anti-worker and anti-young person policy. The Minister is saying that 19-year-olds, 18-year-olds and 17-year-olds do not deserve to get the minimum wage - the inadequate minimum wage - in the middle of a cost-of-living crisis. The Minister is saying that people who go to work and do the same work as the workers next door to them, who happen to be a little bit older, are not entitled to the minimum wage. Some 15,000 young people are affected by this. The Minister is telling them there is no chance of getting the minimum wage until 2029. That is scandalous.

I will repeat the point. People who are 19 years of age cannot pay 90% of their rent. People who are 18 years of age cannot pay 80% of the grocery bill. People who are 17 years of age cannot pay 70% of the price of petrol. The Minister thinks it is okay for employers to superexploit young people by paying them less than the minimum wage. The Fine Gael agenda has been exposed. It is an absolutely disgusting policy.

I am proud of the role the Government has played in improving the rights of employees. The Deputy spoke about rhetoric. Every decision he puts across to us is binary. He does not consider the potential impact such decisions would have on education pathways for young people and the unintended consequences. He does not consider training. He referred to 19-year-olds and 18-year-olds. I can tell him right now that 5% of 19-year-olds are on subminimum rates. That shows us the opportunity in our economy and the pathways currently available. Everything has to be taken in the round. I can demonstrate to the Deputy that there was a 12% increase in the minimum wage rate last year, ahead of wage growth and inflation. Subminimum rates also increased last year. We plan to continue the trajectory of improving conditions for workers. I also have a responsibility to make sure those jobs are there. A corner shop in a small village may be struggling with costs, but the Deputy wants to increase its wage costs to €17 per hour.

This question is about subminimum rates.

That is what the Deputy's proposal will do. Let us be clear about it. He would close down every small business in the country if he had his way and he was running the country.

If they cannot afford to pay the minimum wage, they should not be in business.

The Deputy does not have any balance. He does not know what it means to keep good high-value jobs in our economy.

My question relates to the publication of the action plan on collective bargaining that underpins the EU directive on an adequate minimum wage. When will we see the contents of this plan? What is the timeline for the delivery of the legislation underpinning that?

There is a commitment in the programme for Government to finalise this action plan by the end of 2025. It will be October next week and the Minister is running out of road in this regard.

I thank the Deputy for the question, which I appreciate. It concerns a very important area for us as a Government. Under the programme for Government we have committed to finalising the action plan on the promotion of collective bargaining by the end of 2025, in line with the EU directive on adequate minimum wages. Work on developing the action plan in conjunction with our social partners is currently ongoing. Under Article 4, the directive aims to promote collective bargaining on wages in all member states. Each member state in which the collective bargaining coverage rate is less than a threshold of 80%, as is the case in the majority of member states, including Ireland, shall provide for a "framework of enabling conditions" for collective bargaining and shall also establish an action plan to promote collective bargaining by the end of 2025.

The European Commission expert group's report on transposition of the directive is clear that the design of the framework of enabling conditions and the content of the action plan is entirely up to member states, in consultation with the social partners. A technical working group has been established in the Department with officials and the social partners to examine what will be considered for inclusion in Ireland’s action plan, and the group has met regularly this year. The work of this group is now at an advanced stage and is essential in developing the content of the action plan. It met as recently as last week and will be meeting again shortly. I expect the action plan on collective bargaining to be published over the next couple of months once this work has been completed.

We were also very clear regarding the case coming forward in relation to the adequate minimum wage directive. I made it very clear that irrespective of the result of that we are pressing ahead and will have our plan together. In relation to the consultation open from 14 April to 12 May, I note we received about 80 valid submissions, to which we have responded. Working with our social partners and through the Labour Employer Economic Forum, LEEF, is very important. There will also be challenges from both sides as the plan is being worked on, but I want to get the best plan we can by the end of the year and I am very committed to achieving that.

This is absolutely critical because we are at a juncture regarding how we will shape our economy going forward. We cannot have an economy without workers. We need to stop viewing it as workers versus employers because the benefits of collective bargaining are huge. I commend the campaign in this regard which is being run by the Irish Congress of Trade Unions, in particular, and the presentation yesterday in the audiovisual room. People will be surprised to see that although there is a constitutional right for people to be part of a union, there is no legal obligation on the employer to engage with that union. We have an imbalance there that needs to be addressed. Investing in SMEs and microbusinesses to rescue jobs and protect our communities should be a priority for all our parties. It is certainly a priority for Sinn Féin.

I thank Deputy Conway-Walsh again for her comments on the matter. As I said, it is one area that through the programme for Government we are very much committed to. The Deputy quite rightly spoke about participation in the various forums. Deliberations will be ongoing on that and how we can address it in our action plan. We will be doing that. We have got a lot out of the LEEF structure in terms of the social partners. It is a good mechanism to air these issues. We will not solve everything, however. I can be absolutely honest about that. We will, though, give our best effort to this plan to build confidence and show the Government's capacity regardless of the uncertainty that was there through the legal challenge. We have committed to pressing ahead. I think that is an important statement on how we value workers and value their right to collective bargaining and how we want to give people that opportunity and put in place the conditions where that can grow.

Six of the top ten FDI companies enable union representation. We know for a fact that it increases respect for management. It increases as union recognition increases. We need to take heed of the good jobs Bill in the North as well, because that is really making inroads in this area in terms of union recognition. As a party, Sinn Féin has long stood in support of trade union recognition and the fundamental right of workers to be represented by their unions. I acknowledge the work of my colleague, Deputy Louise O'Reilly, in this area, as well as the work of my former colleague, a former Senator, Paul Gavan, with regard to the support and progression of trade unions and trade union representatives. We on this side of the House are committed to the rights of workers right across this island. Again, this speaks to the all-island economy. We need congruence of workers' rights across the island too.

I absolutely agree that quality jobs are so important in our economy. I think this will be one of the areas we will focus on during our Presidency of the EU in the second half of next year. That will give us a key opportunity. We must remember that in the action plan and under the adequate minimum wage directive, MEPs from my party, including Regina Doherty and others, played a huge role in really working on that directive and getting agreement in the European Parliament. We are, therefore, very keen to try to bring forward the best possible plan that we can. When our EU Presidency term does come, we are also very keen to focus on high-quality work, because this is what our economy should be about. This is why we are very focused on it at all times. I have been part of the past number of Governments and I know the huge improvements we have had for lower-paid workers. That must be acknowledged. When people challenge us on what areas there have been improvements in, it must be acknowledged we have banned zero-hour contracts, which were totally wrong, brought in tips legislation to protect vulnerable workers and we now have a sick pay scheme. Additionally, we have auto-enrolment, which will future-proof people and their retirement plans. The State will be stepping up to the mark over the next number of years. Those are key improvements in the economy, including watching out for lower-paid workers, while also trying to enhance the capacity to get more high-quality jobs into the country, because this will be critical for us all to realise our ambitions in life.

Red tape is a huge issue for small businesses. When I am out meeting business people, one thing that comes up consistently is red tape. What is the Minister of State doing to cut through red tape and simplify business regulation?

I thank the Deputy for his really important question. This is something we all hear about regularly in our constituency offices. The action plan on competitiveness and productivity - a commitment in the programme for Government - recently published by the Minister, Deputy Burke, is a whole-of-government strategic response to the challenges that Ireland is facing. A key focus of the action plan is improving Ireland’s regulatory environment under the theme "Regulating for Growth and Controlling Costs". Measures under this theme include introducing a red tape challenge across Government to reduce regulation for SMEs, undertaking a public consultation to identify areas of high burden and all Government Departments applying the SME test to all measures, and in particular to policy initiatives where it is proposed to increase costs on small business.

In terms of my Department, there is an ongoing commitment to ensuring 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. My Department has also 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.

In terms of legislative change, the Companies Act 2014 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 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. The foregoing complements work ongoing at EU level, where there is a particular focus on simplification. This is what this all boils down to - simplification. I know the Minister has been a huge champion of the simpler, faster and lighter approach in terms of bureaucracy for small businesses.

Go raibh maith agat. I really welcome all that is being done in the Department to try to simplify business regulation.

From my dealings with the Department, that is definitely the thinking. It wants to make life better for businesses. It wants to make Ireland a better place to operate a business. To reiterate how important this point is, the IBEC CEO Survey 2025 ranks sensible regulation as the third most important issue that CEOs across our country face. As Fianna Fáil spokesperson on enterprise, I want to make sure that we continue with that train of thought. SMEs suffer the brunt of overregulation. They do not have the scale and capacity to subsume a lot of the burden. What will be done for the SMEs to ensure that they will have smoother operations, that they can deal with State agencies better and, ultimately, have greater longevity?

The red-tape challenge will be introduced across Government to significantly reduce regulation for SMEs, because we have to get the balance right. I am glad the Deputy stated that regulation is the third most important issue. Companies and CEOs recognise the importance of regulation without killing businesses with additional burdens. The red-tape challenge will include a review by each Department to identify regulations to be removed or reduced without impacting on policy objectives, and a public consultation to identify areas of high burden or where burden reduction could be launched is a focus of the Government.

The overarching objective of the action plan to which I referred is to maintain and improve Ireland's position as a competitive and productive economy capable of withstanding shocks, building on our strengths and developing the indigenous enterprise base while continuing to attract investment and talent from abroad. The action plan contains 85 actions for enhancing Ireland's competitive and productivity performance, with 26 of these identified as priority actions. I hope that provides some detail for the Deputy.

Part of what will make our business environment better to do business in is something that falls within the Minister of State's brief, namely digitisation. Ultimately, the question the Department needs to be asking is whether every grant application, licence, permit, etc., can be processed by it digitally? It is important for every Department to look at this because if somebody cannot easily deal with a Department in person, they will still be able to deal with an official online if they encounter any difficulties. That is the way to think about it.

I have read many times about Estonia's digital-first policy and how innovative it is. The reality is that Ireland is home to the biggest tech companies in the world. The Government need to show both leadership and that we want to be a digital-first nation. Of course, we want to make sure that nobody gets left behind. We need to show leadership, however, because when all of these companies are investing in Ireland, they want to see that we are tech-minded, that we are tech leaders and that we want to see success for their businesses and this country.

I agree wholeheartedly with what the Deputy said in terms of digitalisation, and that is not to take away from Deputy Conway-Walsh's point that there are businesses which will struggle with that. That is why the Department launched the digital charter, which is a call to action for bigger companies that are digitally proficient to buddy up with smaller businesses across the country to help them get on the digitalisation train. AI will be transformative and will bring us to a new level. I am looking forward over the coming weeks and months to us planning the AI summit, which will be part of Ireland's EU Presidency. In all of that, we need huge co-operation from the bigger companies to assist smaller companies where possible. They are willing to work with the Department and have been doing so up to this point.