Dáil Éireann Debate, Thursday - 14 July 2022
173. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the huge increase in energy bills for the restaurant and hospitality sector (details supplied); and the steps that he will take provide assistance and or relief in this sector. [39276/22]
Amharc ar fhreagra174. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the impact of rising energy costs for the restaurant and hospitality sector (details supplied); and his plans to address this in Budget 2023. [39422/22]
Amharc ar fhreagra190. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has engaged with the Minster for the Environment, Climate and Communications in respect of energy costs for restaurants and hospitality service providers; his plans to provide assistance to those businesses impacted; and if his attention has been drawn to the upsurge in energy costs for restaurants and hotels (details supplied). [39275/22]
Amharc ar fhreagraI propose to take Questions Nos. 173, 174 and 190 together.
I wish to assure the deputy that the Government is very conscious of what the rise in global energy costs means for Irish businesses, particularly small enterprises and those with tight margins, including those in the hospitality sector.
While electricity policy nationally is broadly the remit of the Minister for the Environment, Climate and Communications, our Departments have been engaging on this pressing issue. Energy costs are one of the prime factors in the increase in business costs to which the deputy refers, and we have already implemented several measures to help ease the impact on enterprises of energy price increases including reductions in VAT and excise on some fuels, as well as a temporary grant scheme to hauliers in the supply chain.
Minister Donohoe recently announced the extension of the 9% Value Added Tax (VAT) rate for the tourism and hospitality industry for a further six months; a measure for which €250 million is the estimated cost to the exchequer.
Government Departments have been consulting with stakeholders on specific measures that could be considered to ameliorate the short to medium term challenges to energy security. The Energy Supply Emergency Group is an inter-departmental and inter-agency group with responsibility for informing the Government response to the impact of rising energy costs on business, security of energy supply more generally, and a longer-term reduction in Ireland’s dependency on imported oil and gas.
Under the aegis of this Group, my Department has established the Business Energy Users Sub-Group to lead on consultations with business and industry to learn about the specific impacts on Irish businesses, and to hear their concerns and perspectives on the appropriate and most effective tools for policy action. The work of this sub-group, as part of the wider Energy Supply Emergency Group has informed the National Energy Security Framework which was launched by the Government on 13th April 2022.
Furthermore, my Department is discussing competitiveness and price inflation for enterprises with the Department of the Environment, Climate and Communications. To deliver price competitiveness over the medium-term, Government is determined to deliver a diversified energy system, with significant support for energy efficiency and renewables, alongside independent regulation that protects consumers and delivers efficient, competitive energy retail and wholesale markets.
At present, a range of supports are available to households and businesses ranging from practical advice to financial supports. These can be viewed on my Department’s website at enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/Energy-supports/Energy-supports-for-business.html.
Practical advice includes the Climate Toolkit 4 Business, launched late last year by my Department and the Department of the Environment, Climate and Communications. This allows SMEs to input simple information to get an estimate of their carbon footprint and a personalised action plan to reduce it.
From the Local Enterprise Offices, the Green for Micro initiative offers mentoring to micro-enterprises looking to become greener. Additionally, the Lean for Micro scheme works with clients of the Local Enterprise Offices to help build resilience.
The Sustainable Energy Authority of Ireland (SEAI) provides direct grants such as the support scheme for renewable heat, project assistance grants, the EXEED grant scheme, tax incentives available through the Accelerated Capital Allowance, and funding for energy audits. Further training is available via the SEAI’s Energy Academy.
Finally, there are loans available for businesses absorbing the numerous economic shocks of recent years. The Strategic Banking Corporation of Ireland offers the Brexit Impact Loan Scheme, offering loans from €25,000 to €1.5m, and the Credit Guarantee Scheme for businesses responding to the impact of COVID-19. These loan facilities may also be helpful to businesses struggling with increased energy costs. Microenterprises can also avail of loans of up to €25k from Microfinance Ireland which they may not be able to avail of from commercial lenders.
