The Cabinet has approved a package of measures aimed at providing additional support to small and medium sized enterprises facing rising costs.
Among the measures will be an additional targeted cash payment to businesses in the retail and hospitality sectors using the unused funds in the Government's Increased Cost of Doing Business Scheme.
Just 60% of eligible firms drew down a cash payment of up to €5,000 under the €257m scheme leaving money available for further use.
Other measures agreed today include an increase to the threshold for the higher rate of employer's PRSI to take account of recent increases in the minimum wage, although there was no proposal for a PRSI rebate proposed by some business groups.
Funding for energy efficiency measures for small and medium sized firms will also be increased under the Government package, which will be formally announced tomorrow.
The funding is all coming from within existing Government resouces through the reallocation of available money.
There was no proposal for any reduction in the VAT rate for hospitality, which that sector continues to seek.
"What we are seeing is there is a substantial amount of small businesses, especially in the hospitality sector, or food led businesses, still closing down - two a day is our average at the moment," said Adrian Cummins, CEO of the Restaurants Association of Ireland.
"So we will be talking to Government about a bespoke package that is tailor made for food led businesses and the VAT issue must be on the table for that."
There was also no proposal for a VAT rebate, or for the use of the surplus in the National Training Fund, which business groups had proposed.
It is understood that the Minister for Enterprise has written to the Low Pay Commission, however, to ask it to consider a recent report which looked at the cumulative cost to business of Government imposed policy changes.
The Low Pay Commission is an independent body which recommends changes in the National Minimum Wage to Government.
The Minister for Enterprise is also to review an ESRI report examining the implications of changes to the statutory sick pay scheme.
Retail Ireland welcomed the measures, but said further significant assistance would be needed in the Budget.
It also said there needs to be a change of tack in how the Government manages cost increases into the future.
"So what we want is a new test for the implications for competitivness and the affordability that these initiatives have on business and a review into the future of the costs coming down the line and if they are too high they are paused or deferred indefinitely," said Arnold Dillon, director of Retail Ireland.
