Thomas Pringle (Donegal, Independent) | Oireachtas source

I thank the Acting Chair for the opportunity to speak on this legislation today. I support the creation of a Ukraine credit guarantee scheme, developed under the provisions of the EU temporary crisis framework to support firms struggling with the economic difficulties resulting from the aggression against Ukraine by Russia.

Recent months have been very difficult for small business owners, particularly those in rural Ireland. I spoke recently to a shop owner in my constituency of Donegal who has seen an incredible 118.8% increase in their energy bill, working out at an additional cost of €160,000 for the year. Unfortunately, energy is not the only significant rise in cost that they have had to endure of late. The high rate of inflation, due to the war, has led to all their suppliers having to increase costs as well. To maintain competitiveness, this small rural shop has had to absorb some of these increases, which has impacted on its margins. There has been a 10% increase in wrapping and packaging and a 15% increase in insurance over the past year, with insurance rising an incredible 32% since 2019. When factoring in the increased costs, they were looking at a reduction of approximately €220,000 in their bottom line.

Businesses are being hit from all angles. Prices are spiralling at an incredible rate with no sign of stopping any time soon. This is completely unsustainable and without a doubt will force the closure of a number of local businesses in my town and throughout my constituency. This Ukraine credit guarantee scheme, along with the likes of the temporary business energy support scheme, TBESS, are welcome but I am afraid they are too little, too late. Businesses are facing closure today and many have been forced to close already.

My own town of Killybegs has already seen closures due to rising costs. It feels like 2008 all over again, with the constant threat of closures looming and activity in rural towns slowing to a halt as the cost of living continues to rise. The outlook looks particularly bleak for Killybegs because the fishing industry, on which the town was built, is taking hit after hit. I welcome that the Ukraine credit guarantee scheme will include primary producers such as farmers and fishermen as well. However, it is not nearly enough for our fishing industry, which is deteriorating very quickly. The survival of our coastal communities is at stake and throwing a bit of money at them at this late stage in the game is sadly not going to make a blind bit of difference. Fishing communities have been calling for the Minister, Deputy McConalogue, to provide the emergency assistance that is urgently needed to meet fuel costs for months now. Many other member states gave emergency fuel subsidies to their fishing fleets months ago following the adoption of the temporary crisis framework by the European Commission.

The temporary crisis framework allows member states to "use the flexibility foreseen under State aid rules to support the economy in the context of Russia’s invasion of Ukraine". It provides for three types of aid, including limited amounts of aid in which member states are able to set up schemes to grant up to €35,000, which could be granted in any form, including direct grants, to companies affected by the crisis that are active in the agriculture, fisheries and aquaculture sectors. Other types of aid include liquidity supports in the form of State guarantees and subsided loans and aid to compensate for high energy prices. This temporary crisis framework was adopted on 23 March. It is now 9 November and the framework was initially only due to be in place until 31 December. What has the Government been doing all this time? While other countries have successfully put in place emergency assistance, we have waited until we are in our winter months to actually do anything. I am thinking of all those businesses that could have potentially avoided closure had something been put in place much sooner. This Government’s inaction costs livelihoods, our rural communities and our coastal communities.

The Minister, Deputy McConalogue, has turned a blind eye to our fishing industry for far too long. All that is on offer to them is a tie-up scheme as part of the Brexit response, rather than anything to do with the financial crisis. The Minister refused any further response because he did not want to affect any other funding that could come from Brussels in the meantime. The crisis is now and we need funding now to support people. The fishing communities have been calling for the implementation of aid measures since the temporary crisis framework was adopted eight months ago. It simply is not good enough. This Government has failed completely at responding to this cost crisis that businesses are facing. It has failed in responding to the fishing industry in a time of real difficulty, it has failed in meeting the needs of its citizens and it has been too slow in responding.

See this speech in context