The Minister for Enterprise has defended the Government's failure to cut the VAT rate for the hospitality sector to 9% in yesterday’s Budget.
Peter Burke said he does not accept that the Government had failed the industry in its decision to keep the rate at 13.5%, despite intensive lobbying for it to be cut again.
"I wouldn’t accept the charge, we are responding as best we can, every Budget you do has competing interests and it is about the Government taking a decision in the round," Mr Burke said, during a post-budget press conference at Government Buildings.
Mr Burke said he accepts that it is a sector that has been challenged.
"But I will counter in one respect," he said.
"I have seen, and seen many, coffee shops and restaurants opening as well, and it is something I don’t hear anything at all in discourse."
He also defended his decision to fight for the VAT cut, even though his efforts were ultimately unsuccessful.
"When you go into a budgetary negotiation process you do not get everything you want, we are all very clear on that, but I know I can stand over what I’ve got as a department," he said.
The minister pointed to the Power Up Grant, which will provide 39,000 retail and hospitality businesses with around €4,000 to assist with energy bills before the end of the year.
He also referred to changes to the VAT registration threshold, the maintenance of the 9% VAT rate on energy bills, a range of measures that are to be delivered to help startups grow and scale, alterations to the small benefit exemption scheme and the softening of plans to tax family intergenerational transfers.
The minister also said that the Government is re-examining the plan to increase the number of paid statutory sick pay days, which is due to come into effect in January.
"We are currently assessing that and we are looking at a piece of research that we will be better informed making a decision on it," he said.
Mr Burke also said the sub-minimum wage rates are also being examined and the Government would be careful when it comes to responding to that issue.
He added that the implementation of the auto-enrolment pension scheme has been put back to October of next year.
The minister said regulatory change impact assessment are to be carried out in future to ascertain what effect they will have on small and medium sized firms, before a decision is taken to implement them.
He said that when a memo comes to cabinet with a proposal to change a regulation, it has to demonstrate the impact on small business and if it cannot demonstrate that it will not proceed.
