Dáil Éireann Debate, Wednesday - 15 November 2006
125 Mr. Costello asked the Minister for Enterprise, Trade and Employment the actions he is taking to examine the effect of recent increases in electricity prices on small and medium enterprises; the assistance he is making available to companies being put under competitive pressure internationally due to the increase in electricity prices; and if he will make a statement on the matter. [37725/06]
View answerInternational oil and gas prices are the main drivers of electricity prices in the country. We are price takers when it comes to buying fuel for electricity generation and are subject to the same fossil fuel cost pressures experienced by SMEs in other economies. In addition, economic expansion and a growing population makes it imperative that our generating and electricity network is both modernised and strengthened to meet the growth requirements of the economy. €2.8 billion is being invested in network improvements that will provide Ireland with one of the most modern and reliable electricity distribution systems in Europe. These costs are reflected in the prices all users pay for their electricity.
Despite increases in international energy prices that have seen oil rise in price from around $20 a barrel five years ago to today's $60 level, the economy has proved resilient. Economic growth was over 5% last year and is expected to be over 5% again this year. At the same time manufacturing employment, a sector exposed to international cost pressures and comprising many SMEs, has been expanding for the first time in many years. The latest CSO manufacturing employment data shows that jobs in the sector grew by 5,200 in the year to last June.
The enterprise agencies under my Department have very active programmes to help companies become more competitive and productive across all aspects of their operations. The agencies also monitor the effect of costs on business. In addition Forfás has recently undertaken a comparative study of the Costs of Doing Business in Ireland.
Enterprise Ireland's range of supports to help indigenous SMEs are making a big difference to the efficiency and productivity of its client base. For example the impressive €1.275 billion increase in new exports recorded by EI's clients last year is real evidence how our broader enterprise policy is helping SMEs.
The recently published Green Paper on Energy identifies many of the key issues and challenges which we face in energy policy and among many other issues, proposes a target of 20% improvement in energy efficiency by 2020. This Green Paper consultative process provides a framework through which any necessary decisions or reform will be made including those impacting in the medium and long term on cost competitiveness, sustainability and security of supply.
Finally, sustainable Energy Ireland vigorously promotes and advises on energy efficiency through a range of programmes and is eager to provide its knowledge on energy conservation and cost control to the SME sector.
