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12 Feb 2026
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12 Feb 2026
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Kilkenny's Pat Crotty, CEO of the Vintner's Federation of Ireland
There's been a decidedly mixed reaction in Kilkenny to the latest Government’s Business Supports announced today.
Groups such as the Irish Hotel Federation (IHF) South East Branch and the Vintners Federation of Ireland (VFI) - and the Kilkenny man at its helm - have said they fall well short of what's required, while Chambers Ireland has welcomed the measures. Local TD John Paul Phelan has said Fine Gael backs business, and will continue to do so.
The Vintners’ Federation of Ireland (VFI) says that while elements of the supports for business announced by Government are welcome, such as a second payment of the ICOB scheme, the hospitality sector requires strategic measures that will support the pub trade over the long-term.
“While we welcome the reopening of the Increased Cost of Doing Business (ICOB) scheme for a further 14 days and an additional payment for businesses in the hospitality sector, grants are not the answer to the crisis facing our members," said Pat Crotty, VFI Chief Executive.
“Publicans require meaningful changes to their cost base, such as lowering the standard VAT rate and a reduction in the alcohol excise rate, currently the second highest in Europe. The announcement of a change to the Employer’s PRSI threshold only covers the recent increase in the minimum wage so doesn’t result in any real benefit for our members,” he adds.
“Sick pay benefits and the move to a Living Wage are massive threats to the pub trade without the correct supports. Wage increases have to be paid every Friday so any measures offered by Government must be in the context of that reality,” said Mr Crotty. “If we don’t see a long-term reduction in costs we face the real prospect of a decimated hospitality sector."
The Irish Hotel Federation (IHF) South East Branch described the measures as a missed opportunity which overlooks the majority of small and medium sized hotels. It said the business measures announced are disappointing and fall far short of what is required to support small and medium sized regional hotels that are heavily dependent on food services.
“This is a missed opportunity to provide meaningful assistance to our sector at a time of ever-increasing business costs, much of which are a result of the Government’s own policy interventions," said Patrick Kickham-Lennon IHF South East Branch chair.
“Our team of Ministers Peter Burke, Heather Humphreys, Patrick O’Donovan, Paschal Donohoe and Emer Higgins have been working for weeks to develop a 15 point plan, which provides certainty and some much-needed relief, based on feedback from businesses up and down this country," said Deputy Phelan.
“This Government will guarantee any new measure is assessed for its impact on small business. We will call it the SME test. We will increase the employer PRSI threshold to match the recent increase in minimum wage. We will complete research on the impact of sick leave before any further increases. We have reopened the Increased Cost of Business (ICOB) Scheme until May 31st to give businesses a final opportunity to access this cash injection.
“Then, we will launch a second phase of ICOB, with businesses in the hospitality and retail sectors receiving a second payment or double in the case of new registrations. We will help make business more energy efficient by increasing the Energy Efficient Grant for small businesses to €10,000 and reduce how much a business contributes to just 25%. We will launch the new online National Enterprise Hub for SMEs, as an online and over-the-phone one stop shop, to access information on the wide range of Government business supports available.
“We will widen eligibility for the Trading Online Voucher to all sectors with up to 50 employees, and double the grant to €5,000. We will double the maximum grant available for the Innovation Voucher Scheme from €5,000 to €10,000. We will extend the Digital for Business Consultancy Scheme to all sectors with up to 50 employees. And we will increase the lending for Microfinance Ireland up to €50,000 from €25,000. This can be used for cashflow or expansion. We will assist small and medium businesses with the cost of training their staff.
“We will continue to support employers who take on apprentices and commit to unlocking the National Training Fund to assist small and medium businesses. We will launch the new ‘Ireland’s Best Emerging Entrepreneur Programme’ to encourage entrepreneurship and startups in underrepresented groups.
“Small and medium businesses are the heart of our communities here in Carlow and Kilkenny and around the country. They fuel local economies and provide good, stable jobs. Fine Gael backs business, and we will continue to do so.”
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