249. Deputy Danny Healy-Rae asked the Tánaiste and Minister for Finance to give urgent consideration to an issue (details supplied); and if he will make a statement on the matter. [51179/26]

Simon Harris, Tánaiste and Minister for Finance: The Department of Finance receives pre-Budget submissions from a wide range of stakeholders in advance of each Budget and all are given consideration as part of the annual policy cycle.

Proposals for new tax expenditures are examined by reference to the Department of Finance Tax Expenditure Guidelines, which outline the Government’s approach to when tax expenditures are best used, noting that these narrow the tax base, and how they should be evaluated.

With regard to rural pubs, the Department has received and acknowledged a submission from the Vintners’ Federation of Ireland proposing an On-Trade Sustainability Scheme. As this proposal is a targeted tax incentive, consideration of European State aid compatibility would also be required.

The Government is conscious of the challenges facing all businesses in the current economic climate, including the pub sector. The Cost of Business Advisory Forum is working to look at the structural issues that are driving up costs and the steps that could be taken to mitigate them. A range of direct expenditure supports are also available to businesses, and details can be found online on the National Enterprise Hub.

There are a number of existing tax supports available to all businesses, including the on-trade. These are intended to encourage investment in the economy and in particular in indigenous SMEs. These measures provided for by Part 16 of the Taxes Consolidation Act 1997 include the Employment Investment Incentive the Start-Up Relief for Entrepreneurs and the Start-Up Capital Investment.

In addition, the Government announced two energy support packages earlier this year which included temporary excise rate reductions for auto fuels and Marked Gas Oil and an enhancement to the Diesel Rebate Scheme. Government also announced the deferral of the planned 1 May carbon tax rate increase until 14 October 2026. While no Government can fully insulate against energy price shocks, these measures provide support to households and the broader economy by alleviating some of the financial pressures arising from fuel price increases.

It is also worth noting that there has been no general increase in excise duty rates for alcohol since in 2014. While the retail price of beer has risen over that period, the excise duty has remained unchanged and, therefore, the total tax as a percentage of the retail price of each pint is now lower than it was more than a decade ago.

Notwithstanding the above, the matters raised in the submission will continue to inform ongoing policy considerations in the context of the budgetary process.

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Dáil Éireann Debate. Question 299 – Enterprise Policy [50867/26]

299. Deputy Peadar Tóibín asked the Minister for Enterprise, Tourism and Employment the work his Department has carried out to investigate the reason many rural pubs are closing their doors; and if he will make a statement on the matter. [50867/26]

Peter Burke, Minister for Enterprise, Tourism and Employment: The Government recognises the important economic, social and cultural role that pubs play in communities across Ireland, particularly in rural areas, where they often serve as important local employers, tourism assets and centres of community life. My Department is aware of concerns regarding the challenges faced by some rural pubs and hospitality businesses arising from increasing business costs, labour shortages, changing consumer behaviour and broader demographic trends.

While my Department does not maintain a dedicated dataset on the number of rural pubs in operation or on the specific reasons individual pubs cease trading, we engage regularly with representative bodies from the hospitality sector, including through structured stakeholder engagement and the Cost of Business Advisory Forum. These engagements provide valuable insight into the challenges facing hospitality businesses, including rural pubs, and have highlighted issues such as labour costs, energy prices, insurance costs, regulatory requirements and changing patterns of consumer demand.

The Programme for Government recognises the importance of the hospitality sector and contains a range of commitments aimed at supporting the viability and competitiveness of small businesses. As part of these commitments, the Government reduced the VAT rate applying to food and catering services from 13.5 per cent to 9 per cent with effect from 1 July 2026. This reduced rate applies to food and catering services provided by restaurants, cafés, pubs and catering businesses, although EU VAT rules require alcoholic beverages to continue to be charged at the standard rate.

The role of pubs extends beyond their direct economic contribution. The recently published National Tourism Policy Statement, A New Era for Irish Tourism, identifies food and drink tourism as a key area for future development and recognises pubs as an important part of Ireland's tourism offering and visitor experience. Pubs can play a significant role in supporting regional tourism, local food and drink experiences, festivals and destination development initiatives.

More broadly, the Government's approach to rural development, as reflected in Our Rural Future, recognises the importance of sustaining vibrant rural communities and supporting local enterprise across rural Ireland. Rural pubs can make an important contribution in this regard by providing places for social interaction, supporting community life and helping to address rural isolation.

In addition, my Department established a Small Business Unit to ensure that the needs of small businesses receive dedicated attention across Government. The Unit works to strengthen the application of the SME Test across policy-making, improve access to business supports through the National Enterprise Hub and ensure that the needs of small businesses, including hospitality enterprises, are reflected in Government decision-making.

The Government will continue to engage with hospitality sector stakeholders and monitor the challenges facing rural pubs as part of its wider commitment to supporting a competitive, sustainable and regionally balanced enterprise and tourism sector.