Martin Browne (Tipperary, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I wish to address the concerns that have been expressed to me, as they have no doubt been expressed to the Minister and to other Members of this House, about the number of businesses that unfortunately have had to close some of their branches. I am referring to butchers specifically. Some of them have had to close branches or have had to shut their doors altogether. One such butcher in Thurles is a member of the Irish Butchers' Guild. He told me that he has been forced to close one of his branches and let go six staff. The Minister of State can imagine the impact this has on a local economy. In his letter the business owner told me that the increase in the electricity charges is unsustainable and he points out that many butcher shops have closed already this year. Unfortunately, this owner has had to close one shop and this has a major impact. He has another shop in Clonmel. All over the country such shops are in massive trouble. This type of retailer needs the highest quality of refrigeration to comply with the standards of the Food Safety Authority of Ireland Act and with hygiene regulations. This cannot be overstated. In anticipation of what has come to pass, they made great progress in becoming more energy efficient, including using the latest solar panels, water heaters, insulation, LED lighting and so on. In the past 18 months this owner had invested €150,000 in the shop that is now closed. Now those six jobs are gone, along with the money he had ploughed into his shop. He has another shop in Clonmel, which employs another six people, but something needs to be done and done fast so that this shop does not close, and other shops like it around.

Among other things, my purpose as a Deputy is, like all Members here, to be a messenger and to bring the concerns of the public to the likes of the Minister and Ministers of State who sit here, and this is what I am doing today. The business owner has pointed out that small and medium-sized enterprises have been singled out by the Ministers' Departments and others as being the backbone of the Irish economy. They were asked to stay open during the Covid period. Now, however, with the big threat of Covid gone, they just seem to have been forgotten about again. Only 12 months ago they were considered essential. It must be galling for such business owners that they are spending that kind of money to try to stay open and they see the small schemes the Government is bringing out, and yet most of the electricity companies are making massive profits of hundreds of millions of euro in a six to nine-month period while the SMEs are being forced to close their places. The business owner told me that he sees the temporary business energy support scheme as somewhat helpful but not nearly enough to offset the overhead that he has laid out. He has described the outlays coming down the line as being astronomical.

That scheme was too little too late for the branch of the business this butcher had to close. We need to have action to ensure the future viability of his other branch, and many other businesses such as locally-owned supermarkets and others who have also contacted me. The ability of the scheme to provide for businesses such as his is limited given its timeframe. That scheme deals with the winter months but more energy is used by businesses like his in the summer months. This is what such businesses tell us. We need to see measures introduced that are tailored to the specific needs of businesses and which are effective enough to give them certainty.

I welcome the Credit Guarantee (Amendment) Bill but it must be noted that due to Covid and the emergence last year of rising inflation, many businesses took on debt. There are businesses for whom this scheme will be of very limited benefit. That needs to be looked at. We must look further and we must see immediate action.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I invite the Minister of State, Deputy Calleary, to respond.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Buíochas leis an Teachta Browne as an ábhar seo a ardú. I thank Deputy Browne for raising this issue. I absolutely understand, and am aware of, the concerns the Deputy has expressed on behalf of his constituent in Tipperary. Businesses all over the island are worried about energy costs heading into the winter. As the Deputy has said, businesses need help with their energy bills. The Government has introduced a significant package to assist them. As the Deputy is aware, the temporary business energy support scheme, TBESS, is being designed to support eligible businesses that have experienced a significant increase in their electricity or natural gas costs. The TBESS provides up to €30,000 per month for a company with multiple branches, similar to that described by the Deputy. The scheme is currently being discussed as part of the Finance Bill and should, hopefully, be implemented as soon as the Finance Bill is passed in the House. We will then be in a position to begin supporting businesses directly.

In addition to TBESS, I would also direct the Deputy to the Revenue Commissioners' website, which has a very detailed questions and answers document about how TBESS will work. There is also the new €200 million Ukraine enterprise crisis scheme for manufacturing and internationally traded firms. In addition, a new €1.2 billion State-backed Ukraine credit guarantee scheme, which the Deputy spoke on yesterday, will assist the wider business sector with liquidity and to invest in energy efficiency.

Small and medium-sized businesses can currently receive an energy audit voucher from the Sustainable Energy Authority of Ireland, SEAI, to get professional advice on how to increase efficiency and reduce their energy costs. Other financial assistance includes the SEAI community grant and grants for microgeneration. All businesses such as those described by the Deputy can contact the local enterprise office for support and guidance on how to get through the current challenges.

It is important to note that the rate of incorporations of new companies still far outstrips liquidations, and the rate of company incorporations continues to remain robust in 2022. We have also put in place the small companies administrative rescue process, SCARP, a dedicated rescue process for small and micro companies, which makes rescue and restructuring quicker, more accessible and affordable to fundamentally viable companies experiencing temporary difficulties, such as the current energy costs.

Martin Browne (Tipperary, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Gabhaim buíochas leis an Aire Stáit. I spoke about businesses that have taken out major loans, like the one that invested €150,000, in the past 18 months or so. They took them out to deal with the consequences the pandemic had on their trade. The future is uncertain for many of those businesses because they will not be able to deal with that kind of debt.

More can be done. Measures can be taken to offset the cost in other ways for these businesses. I refer here to tackling insurance costs. The Personal Injuries Assessment Board has confirmed a large drop in personal injury awards. It is vital that the Government press insurance companies to reflect this in premiums for businesses and that it demand it, because businesses have little or no room for manoeuvre.

The Government must ensure the terms and conditions of the credit guarantee scheme are favourable for businesses that are struggling. It is imperative that a watchful eye is kept on the scheme in order to ensure that the businesses availing of it are not just those with more resources to enable them to access it. This funding needs to reach those who need it, like small businesses that employ six to ten people. I hope the Minister of State will take the concerns expressed by me and by business owners on board because every Member of this House has been contacted by small businesses like these butchers and that. I hope he does not discount what they say. This is what they experience daily.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am not discounting what the Deputy says. That is why we have put in place €1.2 billion in funding under TBESS. It is explained very well on the Revenue Commissioners' website. There is also SCARP, which will give small companies time to restructure the kind of finances and loans the Deputy spoke about. The Government put in place extraordinary supports for businesses, particularly small businesses, during the Covid pandemic and will not walk away from businesses amidst the current challenges. As soon as we get the Finance Bill passed, we will be in a position to begin administering TBESS to companies like those described by the Deputy.

I have accepted a meeting request with the Associated Craft Butchers of Ireland sent to me by Senator Fitzpatrick. I will be hearing from them all over the country, similar to those in Tipperary. I assure the Deputy that the Government has put supports in place, is committed to our small business and small food sector and that commitment is real.