An organisation representing small businesses has called for decisive action on the issue of rising business costs from the new Cabinet led by Taoiseach Simon Harris.
The Small Firms Association (SFA) said a new PRSI rebate needs to be introduced to help small companies and other businesses as they transition towards providing a Living Wage.
The call is one of a number contained in policy priorities published by the SFA, as the country heads into a busy election period.
"With a significant proportion of people working for small businesses, the Small Firms Association wants swift action from Government," said David Broderick, director of the SFA.
"Many small and viable businesses are struggling to manage costs arising from high energy costs, supply chain challenges and fluctuating commodity prices."
"The most challenging issue is the new national minimum wage rate coupled with incoming Living Wage rate which are lowering the shutters to businesses across the country."
"Retail and hospitality businesses are particularly vulnerable at this time, but that is just the tip of the iceberg."
Alongside the PRSI rebate, the organisation has put forward a range of suggestions of ways in which the business costs issue could be addressed.
These include a requirement for the Government to stress test regulations before introducing them and the introduction of an enterprise support scheme to help small business transition pay rates towards the Living Wage rates.
It also wants commercial rates reformed and improved access to finance.
SFA has also suggested measures to ease the tax burden, including a cut in capital gains tax to 20% from 33% and an increase in the lifetime limit for CGT Entrepreneur's Relief to €5m.
It is also seeking angel investor relief for all trading and professional service businesses, changes to the Employment Investment Incentive Scheme, along with talent retention assistance.
A range of upskilling supports are also needed, it says, as well as measures around achieving the transition to the green economy and access to work for employees with disabilities.
"Small businesses account for 98 per cent of the total number of businesses in Ireland, employing nearly half of the private sector workforce," said David Broderick.
"Small businesses are the beating heart of communities across the county. I was encouraged by recent statements by Taoiseach Simon Harris about his administration's renewed focus to help small businesses."
"I hope his administration will follow through on its commitment to help small businesses as a matter of urgency."
Mr Harris recently said making progress for small businesses would be among the top priorities of his time as Taoiseach.
A range of business groups representing small and medium sized firms have been pressuring the Government to act to help their members amid a climate of rising costs, many of which have come from new workers’ rights introduced by the State.
ISME along with a number of other trade organisations recently launched a major nationwide campaign to address rising labour costs.
