Dáil Éireann Debate, Thursday - 12 October 2023
102. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he continues to assist both the manufacturing and service sectors in order to deflect the impact of costs increases, whether generated internally or externally; and if he will make a statement on the matter. [44572/23]
View answerThis government is committed to supporting companies who are experiencing cost increases.
My Department , through Enterprise Ireland (EI) is funding the the development and growth of Irish enterprises in world markets. EI works in partnership with Irish enterprises to help them start, grow, innovate and win export sales in global markets. In this way, they support sustainable economic growth, regional development and secure employment.
Enterprise Ireland is helping Irish businesses to manage the economic impact of the current energy crisis as a result of the war in Ukraine through the Ukraine Enterprise Crisis Scheme. The scheme is aimed at businesses experiencing significant difficulty as a result of increased energy costs and the impact on the business as a result of the war in Ukraine.
The Ukraine Enterprise Crisis Scheme offers two streams of support to manufacturing and Internationally Traded Services companies.
• Stream 1 is a liquidity measure that will help viable manufacturing and Internationally Traded Services companies experiencing trading difficulties to access funding up to €2m.
• Stream 2 is a state aid support for eligible energy intensive companies who are experiencing severe increases in energy costs in 2022 and 2023 compared with 2021.
Additionally, The Crisis Response Business Financial Planning Grant is a strategic intervention to assist companies to prepare a detailed financial plan and to assess the impact of currently emerging developments on their business.
The Crisis Response Business Financial Planning Grant offers up to €5,000 (100% of expenditure) for an engagement with an approved external consultant to:
• understanding the impact of the war in Ukraine, increases in input and energy costs, currency fluctuations and supply chain disruptions on working capital
• understanding any immediate liquidity issues (if any)
• creating a financial plan to secure external finance (if required)
• developing a framework to manage the finances of the business.
The offer seeks to encourage companies to be proactive in developing a detailed financial plan that identifies funding needs and potential sources of funding.
The Government recently launched a new scheme for businesses that were impacted by significant increases in the cost of Kerosene during 2022.
The Business Users Support Scheme for Kerosene (BUSSK) will compensate eligible businesses for 50% of the increased cost of Kerosene purchased for heating their business premises during the period from 1st March to 31st December 2022, compared to the average retail price for the same period in 2021. There will be a guaranteed minimum subsidy payment of €500.
Businesses that have a commercially rateable premises and purchased a minimum of 1,000 litres of Kerosene during the eligible period, can apply to the scheme. B&Bs that are approved under the Fáilte Ireland National Quality Assurance Framework are also eligible. Businesses that have already received payments from the Temporary Business Energy Support Scheme can apply to BUSSK (up to the limits of BUSSK), and businesses with multiple premises can apply in respect of each premises.
Full eligibility criteria and details of how to apply to the scheme are available at the following address: www.bussk.ie.
The LEOs offer a suite of supports to assist businesses in improving their productivity and increasing their efficiency.
The LEO Lean for Business programme allows clients to avail of consultancy support from a Lean expert who will work with the company to introduce Lean principles, undertake a specific cost savings project and assist the company in benchmarking its performance, The programme helps:
• - Identify issues and potential improvement areas
• - Provide support to implement
• - Achieve savings and improvements in capability and capacity to deliver
The LEO Green for Business programme is open to all small businesses. Businesses will access two days of intensive mentoring including a sustainability audit and action plan, designed to help "green" their business. This programme offers free advice and technical support on resource efficiency, how to better understand their carbon footprint and how to implement an environmental management system to reduce costs and lower greenhouse gas emissions. This support is free of charge and represents the potential for increased efficiencies within companies that adopt these principles.
The new Energy Efficiency Grant , launched this year, supports capital investment by businesses to reduce carbon emissions based on energy efficiency projects. The scheme assists companies in reducing their carbon emissions and overall energy costs by accelerating the adoption of low carbon technologies or processes. The grant offers 50% of project costs, up to a maximum of €5,000.
The Local Enterprise Offices have also recently launched the ‘All in a Day’s Work’ national campaign to highlight the benefits to business of being more lean, digital and green; saving them time, money and energy.
IDA Ireland operates a range of schemes to support businesses, including in their RD&I programmes, technology upgrades, and decarbonisation activities.
The IDA also supports businesses through the Ukraine Enterprise Crisis Scheme. Stream 3 of the scheme responds to the impact of the Ukraine crisis on companies in the energy-intensive microelectronics manufacturing industry. Undertakings active in this sector will be eligible to receive up to €50 million to ensure liquidity and to preserve economic activity. The UECS supports eligible manufacturing and internationally traded services companies, who are currently viable but financially vulnerable as a result of the direct and indirect effects of the situation in Ukraine. To qualify for funding, companies must demonstrate the impact of increased energy costs on their business and develop an energy efficiency plan.
The Sustainable Recovery Scheme incentivises companies to accelerate or expand capital investment to reduce carbon intensity through investment in CO2 abatement technologies in order to improve cost competitiveness, reduce CO2 emissions, and reduce the payback period of key carbon reducing technologies at plant level. This scheme is aimed at larger investments to aid decarbonisation and digitalisation at higher rates and for more ambitious initiatives.
