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

I thank Deputy O'Sullivan. Overall the credit demand survey for 2023 paints a complex picture. It is multifaceted because, of course, SMEs operate in a range of sectors. Overall the results of the survey once again underline the resilience in the face of economic challenges. There is a steady demand for credit. It also highlights evolving investment patterns, one of which Deputy O'Sullivan correctly highlighted with regard to investment in climate and energy efficiency measures.

We continue to have work to do to highlight the supports that are there including, for example, the capital allowance regime we have for investment in energy efficient equipment. In recent budgets further changes have been made to make these schemes more attractive. Ultimately, we want to support businesses to decarbonise and reduce their own energy costs and make them more competitive. With regard to prices, the environment of inflation and the input costs that businesses have faced throughout last year and over the past number of years has forced many of them, reluctantly in some cases, to increase prices.

However, we are now in a much better place in terms of the moderation of inflation. That is beginning to work its way through to the data and hopefully will result in some businesses not being forced to increase prices.

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