Minister for Finance Michael McGrath has confirmed that measures will be introduced before the next budget to assist businesses facing difficulty.
It comes as presumptive taoiseach Simon Harris faces a renewed push to shore up support among small firms and their owners.
According to The Irish Times, some in Fine Gael are of the view that Mr Harris should consider a break with convention and introduce taxation changes before the budget — with targeted reductions in VAT and employer’s PRSI for certain under-pressure sectors.
Speaking on Tuesday, Mr McGrath said a new report commissioned by the Department of Enterprise had examined the impact of the various policy measures the Government had introduced to improve working conditions, including pay rises and increases to the minimum wage.
The Fianna Fáil Minister told RTÉ's Morning Ireland: “There is a cost to business, arising from the combined effect of all of those measures. And as a result of that, we have already indicated a number of moves that we are prepared to make.
“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.
“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.”
He added that he wanted to see the roll-out of grants worth €250 million to businesses over the coming weeks that was announced in Budget 2024.
When asked about the possibility of a transfer pact between himself, Tánaiste Micheál Martin and Simon Coveney, Mr McGrath said there would be no transfer pact. He said 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 [Harris] 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 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.”
