Dáil Éireann Debate, Tuesday - 24 July 2018
1298. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the supports being considered to help businesses with the increasing cost of doing business, including increased energy prices. [35131/18]
Amharc ar fhreagraAddressing Ireland’s cost competitiveness remains a key economic priority for Government and we continue to monitor Ireland's cost base and analyse the factors that are crucial to improving our cost competitiveness.
A range of initiatives set out in the Action Plan for Jobs 2018 are in train across Government Departments to enhance our cost competitiveness and productivity, improve the ease of doing business, reduce the administrative burden and drive greater efficiencies across the enterprise base. Through the Action Plan for Education and Pathways to Work the Government is working to ensure the pipeline of talent can meet the demand for labour to reduce labour cost pressure. The ongoing work of the Personal Injuries Commission, the implementation of the Report on the Cost of Motor Insurance and the complementary work of the Cost of Insurance Working Group should help to reduce insurance costs for businesses. Rebuilding Ireland - Action Plan for Housing and Homelessness presents a wide-ranging set of commitments to address housing supply.
Competitively priced supply of energy is vital for business and its ability to compete successfully in domestic and international markets. The openness of our economy and the high dependence on imported fossil fuels makes Ireland’s energy prices vulnerable to substantial oil price fluctuations. The Ireland’s Competitiveness Scorecard 2018 Report, which was published on 18 July by the National Competitiveness Council, found that average electricity and gas prices for business increased in the second half of 2017.
Consistent with European energy policy, the electricity and gas markets in Ireland are commercial, liberalised and competitive. The Government has no statutory function in the monitoring or setting of electricity prices, with the main thrust of Government policy on energy costs focused on ensuring a competitive market and supports for energy efficiency. The Department of Communications, Climate Action and Environment funds a number of incentives and supports for businesses to become more energy efficient thereby controlling their cost base. These are operated through the Sustainable Energy Authority of Ireland (SEAI) and are as follows:
The EXEED (excellence in energy efficient design) scheme provides advice and grant support for businesses to improve the design, construction and commissioning processes for new investments and upgrades to existing assets. The initiative is applicable to any sector or organisation and to projects of any scale or complexity. Companies participating in the pilot phase achieved average energy cost savings of 28%. Minister Naughten has increased the funding allocation for this flagship initiative from €2.5m last year to up to €10m for this year.
The Smart Lighting scheme piloted in 2017 encourages and supports businesses to upgrade to more energy efficient lights – significantly reducing their energy costs – has been rolled out nationally in 2018.
In the agricultural sector SEAI operate a scheme aimed at dairy farmers to help them upgrade equipment in milking parlours to increase efficiency and reduce energy costs. The Accelerated Capital Allowance Scheme is a corporation tax incentive for companies and aims to encourage investment in energy efficient equipment. It offers an attractive incentive allowing companies to write off 100% of the purchase value of qualifying energy efficient equipment against their profit in the year of purchase.
Advice, training and supports are available from SEAI on the steps businesses can take to improve their energy management, on energy audits to identify opportunities and supports to achieve continued improvement and/or certification. These supports include free information, best practice guides and online energy management strategies tailored to different sectors and online self–assessment and training. Project assistance grants are available to help businesses developing energy performance contract (EPC) solutions to finance the delivery of energy efficiency projects.
The Better Energy Communities (BEC) Scheme is a community programme where business can access funding for energy efficiency and building fabric improvement as part of an integrated project in the local community.
The Support Scheme for Renewable Heat, approved by Government in December 2017, is designed to financially support the replacement of fossil fuel heating systems with renewable energy for commercial, industrial, agricultural, district heating, public sector and other non-domestic businesses. The scheme will consist of two types of support mechanism – an operational support (paid for up to 15 years) for biomass heating systems or anaerobic digestion heating systems; and a grant to support investment in renewable heating systems that use heat pumps. The scheme is planned to commence operation later this year subject to State Aid approval.
