Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

Like many Deputies, I wish to raise the issue of the near desperation of many local businesses due to the cumulative impact of so many different increases in the past year. We have heard about the increase in the cost of energy. All businesses are impacted. I listened to the Tánaiste's responses this morning to oral questions. The Government has taken some steps in this regard. The temporary business energy support scheme is a good scheme, but it is worth taking a closer look at its impact. The owners of the local Centra shop in Magheraboy contacted me and sent me copies of that business's ESB bills. I was asked to use this shop as an example. In 2019, for example, one of this shop's monthly bills cost just over €7,000, with VAT of €925. In August 2022, this shop's bill was €20,966, with VAT at 9% of €1,731. The cost has trebled and the VAT due has doubled. I note that the TBESS will help, but only at the rate of 40%. This shop will still be left to carry the can for 60% of the cost. For this business, this amounts to €5,000 every month.

I know businesses can make savings and they are doing so assiduously already. It is not just the impact of the energy costs alone, however, but the cumulative impact overall. Returning to the example of my local Centra shop, rates have also increased. This is happening in many counties. Insurance costs have also increased. Motor insurance costs have been addressed but public liability insurance costs have not been. There has also been an increase in packaging costs. The biggest increase in costs has been in wages. The minimum wage increased by 80 cent. I voted for it and I support it. In fact, I would support a living wage. The impact in this regard on these businesses, though, of paying 80 cent an hour at 1,400 hours weekly will be €58,000 next year.

My point is that businesses are taking one hit after another. Their capital reserves are gone. They cannot use capital reserves to benefit from some of the initiatives, such as that for solar panels, that the Tánaiste spoke about. These businesses are talking to the banks about interest-only repayments. I am hearing this from retailers across my constituency, as I am sure the Tánaiste is as well. This morning, I spoke to the owner of the SuperValu shop in Manorhamilton. He wrote to the Tánaiste only a few days ago and again raised the point that it is the cumulative impacts that are really hitting businesses. I ask the Tánaiste, therefore, if there is anything more he can do to deal with the cumulative impact of all these increased costs.

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