Dáil Éireann Debate, Thursday - 18 April 2024
73. Deputy Niamh Smyth asked the Minister for Enterprise, Trade and Employment for an update on the supports available to businesses with the rising cost of energy in running a business, particularly those in the hospitality sector, which has seen a number of closures recently. [16698/24]
Amharc ar fhreagraThe latest data available from the Central Statistics Office shows that the price of wholesale electricity in February 2024 was 46.8% lower than in February 2023, with electricity prices falling by 15.3% between January 2024 and February 2024. Additionally, the Wholesale Price Indices for Energy Products – that is fuels purchased by manufacturing industry – fell by 37.2% over the year to February 2024. Whilst energy cost have fallen from their peak, I recognise that energy costs are still above historic norms.
This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years. Prior to Budget 2024 the Government made available €1.3 billion through the Temporary Business Energy Support Scheme (TBESS) to support firms facing increased energy costs.
Budget 2024 saw the announcement of a €257 million package for the Increased Cost of Business grant. The Local Government sector is managing the rollout of the grant to qualifying businesses. These firms are being encouraged to register for the scheme and it is up to businesses to verify their details through an online portal. This scheme is designed to help SME’s.
I also recognise that there are other costs impacting firms. My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of changes to working conditions. Reflecting the findings of this assessment, a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve cost competitiveness of firms.
These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000; preparation of an options paper on the application of the lower 8.8% rate of Employer PRSI contribution; a range of measures to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms.
My Department is fully committed to supporting businesses and the measures included in Budget 2024, and more recently in the measures announced following the publication of the ‘Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’ reflect this.
