Oireachtas Joint and Select Committees

Wednesday, 14 September 2022

Committee on Budgetary Oversight

Updated Economic and Fiscal Position in Advance of Budget 2023: Discussion (Resumed)

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Over the last couple of days, in Mullingar, many of our colleagues raised examples. I know the same is true of the Minister, Deputy Donohoe's party colleagues. They raised many examples across the country of three-fold, four-fold and even five-fold increases in energy costs for businesses, which are out of line with even the steep increases that households have had to endure. I think that is partly due to the nature of the contracts and the arrangements that they have in place with their providers. Once they come out of contract, they are faced with a hefty increase in the per unit charge. All I can say at this remove is that we are deeply conscious of the impact of that extraordinary energy inflation on businesses. They are also facing rising costs across a number of other areas. The most severe and impactful increase is undoubtedly in relation to energy prices.

The Minister, Deputy Donohoe, outlined the progress that we have made on jobs, which the Deputy has acknowledged. Having seen such a recovery in the economy and having seen the number of people at work reach a record high watermark in Ireland's history, we are determined to do all that we can to help viable businesses to survive. Of course there is a limit to what we can do. We cannot fully offset all of the increases for businesses in the same way that we cannot for many households. We have to be honest with people and acknowledge that. I can say that work is actively ongoing across all of the main Departments that the Deputy would expect to be involved, to assess the best and most effective way to support the businesses that are in most need. We will bring forward that response on budget day. The Minister, Deputy Donohoe, and I, the Tánaiste and others are directly engaging on specific issues. We expect to come to final decisions in the next ten to 12 days.

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