Politics

New measures to support struggling businesses could come before Budget - McGrath

Simon Harris under pressure from party to emphasise supports for enterprise in coming months

Michael McGrath ruled out a transfer pact with Fine Gael minister Simon Coveney in Cork South Central. Photograph: EPA

Vivienne Clarke
Pat Leahy
Tue Mar 26 2024 - 10:50

Minister for Finance Michael McGrath has indicated that measures could be introduced before the next Budget to assist businesses facing difficulty.

Mr McGrath told RTÉ radio’s Morning Ireland that a report that Minister for Trade, Enterprise and Employment Simon Coveney brought forward, which examined the impact of the various policy measures that the Government had introduced to improve working conditions, had identified the necessity “in particular improving rates of pay, minimum wage and, improving certain leave entitlements and so on”.

“There is a cost to business, arising from the combined effect of all of those measures,” Mr McGrath said. “And as a result of that, we have already indicated a number of moves that we are prepared to make.”

The new Fine Gael leader and presumptive next Taoiseach Simon Harris signalled on Sunday that support for small businesses would be a key Fine Gael priority for his Government. In recent months, there has been much grumbling among Fine Gael backbenchers about increased costs for business, reflecting grassroots unease on the issue.

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“The energy efficiency grant for businesses is being increased. In relation to employer PRSI we have identified the consequence of the step effect that is there in respect of the low rate of employer PRSI, associated with low levels of income,” Mr McGrath, a Fianna Fáil minister, said.

“And we are committed to examining what we can do in that space before the Budget. We discussed this a number of weeks ago at Cabinet committee level. And Minister Coveney brought forward a proposal to develop options paper to Cabinet recently. So that work is advancing through the Department of Social Protection. That is what I support. And that is a move that I would support, as soon as it has been completed.

“And then we want to see the roll-out of the quarter of €1 billion grant to businesses over the coming weeks that we announced in the Budget.”

When asked about the possibility of a transfer pact between himself, Tánaiste Micheál Martin and Simon Coveney in Cork South-Central, where all are running, Mr McGrath said there would be no transfer pact. He said, however, that he “very much respected” Mr Coveney’s approach to work and that they worked well together at constituency level, national level and around the Cabinet table.

Mr McGrath also congratulated Simon Harris on his “impending elevation to the office of Taoiseach. It’s a very proud day for him and his family.”

“We’ve worked closely with Simon around the Cabinet table for the last four years, and, I’ve been impressed with his work as a minister. Clearly, his colleagues in Fine Gael, fully support him, and he will be elected as Taoiseach of the country in two weeks time.”

Mr McGrath said he knew that Mr Harris recognised the importance and value of a good relationship at leader level.

“We have three parties in this Government. And while we will all seek to have our own individual identity as parties while continuing to serve in Government, the most important thing here is the stability of the Government that we offer certainty for our economy, for people who are creating and sustaining jobs in Ireland, and that we use the resources that we are generating wisely to build homes, to invest in public services. And that’s what the Government will do.”

Vivienne Clarke

Vivienne Clarke is a reporter

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times

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