Matt Shanahan (Waterford, Independent)
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4. To ask the Minister for Enterprise, Trade and Employment if he will outline any expanded scope that is being offered to Enterprise Ireland to provide financial support to indigenous industries that are facing energy cost increases that are more than twice the Government's €10,000 per month support package; and if he will make a statement on the matter. [53737/22]

Matt Shanahan (Waterford, Independent)
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It is good to see the three Ministers with responsibility for enterprise here this morning to take questions. My question relates to any expanded scope that is being offered to Enterprise Ireland to support indigenous industries financially, particularly those facing energy bills that are well outside the proposed additional increase of €10,000 in energy supports.

Leo Varadkar (Dublin West, Fine Gael)
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Understandably, many businesses are very worried heading into the winter period. The cost of energy, and the cost of doing business generally, is rising, interest rates are going up and consumer confidence is waning, so businesses need help with their energy bills. The Government has introduced a significant package in the budget to help them in the coming months.

This morning, along with the Minister for Public Expenditure and Reform, Deputy Michael McGrath, I launched the €200 million Ukraine enterprise crisis scheme. It will be implemented through Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta and is now open for applications. It is not limited to client companies of those agencies. It will assist viable but vulnerable firms of all sizes in the manufacturing and internationally traded services sectors that are suffering liquidity problems or are affected by severe rises in energy costs as a result of Russia’s invasion of Ukraine. The scheme will operate under two streams and will provide between €20,000 and €500,000 per firm to ensure there is sufficient liquidity available in the markets, thereby reducing additional costs for firms. For energy-intensive companies impacted by exceptionally severe increases in gas or electricity costs, the scheme will provide for a minimum of €20,000 and a maximum of €2 million per firm.

In line with the Government’s commitments under the climate action plan, the scheme recognises the importance of encouraging sustainability, and successful applicants will be required to put in place an energy efficiency plan. I point out that the scheme is only for manufacturers and those involved in the internationally traded sectors.

The scheme will work alongside other measures announced in the budget, such as the Ukraine credit guarantee scheme which will provide €1.2 billion in low-cost lending to business, and the temporary business energy support scheme, administered through the Revenue Commissioners. The latter scheme is being finalised at present and will have an estimated cost of approximately €1.25 billion. It will provide energy subsidies to businesses of that level.

Matt Shanahan (Waterford, Independent)
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There is an urgent need for financial supports across the SME trading sector. I have raised previously with the Tánaiste the need for specific sectoral supports. I highlight the food processing sector, which is in real trouble, and food retailers. I recently wrote to finance Ministers regarding a south-east food processing company whose monthly bill has gone from €8,000 to €48,000. Just last night, I was in discussion with Associated Craft Butchers of Ireland. More than 650 butcher shops are facing increases in their electricity rates, with bills rising from less than €1,000 to more than €4,500 per month. That is unsustainable. Two butcher shops closed in the past week alone. There is a need for urgency here.

The Tánaiste stated that the TBESS is due to open. When will it be available to be accessed? These businesses will not remain viable for much longer. Many of these small butcher shops are very much integrated in the rural and regional economy and employ between two and eight people each. This is an indigenous sector that badly needs to be supported.

Leo Varadkar (Dublin West, Fine Gael)
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I thank the Deputy. The scheme announced this morning is now open for applications through the agencies. I will have to double check to be certain, but I think food processing should be covered under the scheme because it is the manufacture of food products and most of our food is exported, so I anticipate that the companies to which the Deputy refers could apply under the scheme. They would have to demonstrate that their energy bills constitute a significant amount of their turnover and that their profits are down. This may be an option for some of them.

I need to be frank with the House, however. We are not going to be in a position to cover fully the cost of increases in electricity bills for business, no more than we can do it for households. There are limitations on the budget even though the economy is going well. We know the effect of unlimited price promises across the water. We are not going to do that. We are not going to be able to cover fully the increased cost, unfortunately. In addition, we are covered by EU temporary crisis framework state aid rules. They are there for good reasons, namely, to protect the taxpayer and to ensure that different countries do not engage in unfair competition.

Matt Shanahan (Waterford, Independent)
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I thank the Tánaiste. I welcome the news of the Ukraine enterprise crisis scheme. I hope the company to which I referred will be able to access funding under the scheme.

There are incredible challenges right across the business and SME sectors, particularly for companies such as food processors which are using large amounts of gas or electricity and whose business model has been completely destroyed. We need to have a clear strategy in terms of what we are trying to do. I accept, as I am sure does every other Member, that we cannot save every business, but we do need to have a serious look at the businesses that can be saved, particularly those that contribute to Tourism Ireland and our tourism offering. The hospitality and retail sectors are part of that.

I am not sure if the Tánaiste clarified when the TBESS scheme will be open and business will be able to access funding from it. That is what these small businesses need, particularly now. They just need some relief from the bills they are facing.

Leo Varadkar (Dublin West, Fine Gael)
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To clarify, the Ukraine enterprise crisis scheme announced this morning is now open for applications. The temporary business energy support scheme requires legislation. The Finance Bill has to get through this House and the Seanad before that scheme can be up and running. It will be administered by the Revenue Commissioners.

Presuming we get the Finance Bill through the Houses, and I believe we will, we would expect it to be up and running by the end of November or early December. Any payments will be backdated to September. Businesses can be assured that they will receive money through the Revenue Commissioners before Christmas to help them with their energy bills, not just going forward but backdated to September.