John O'Mahony (Fine Gael) | Oireachtas source

I thank the Cathaoirleach, the Leas-Chathaoirleach or whoever was responsible for selecting this Commencement matter. I welcome the Minister of State for what is his first debate on a matter in which I have been involved. I also congratulate him on his appointment.

I was contacted by a number of businesses about the public service obligation, PSO, levy, which it is proposed be increased by approximately 36% from October. A Government levy on the electricity bills of commercial and domestic users, it is used to subsidise the use of renewable energy sources, which is laudable, and peat-burning power plants. However, the levy has been increased by 226% since 2010.I think there were small decreases at some stages - perhaps there was one last year - but this year's increase is one of the biggest.

I will put this in context. I was contacted by representatives of a quarry in the Minister of State's constituency. At the moment, the quarry is paying €5,520 a month, or €66,240 a year, as part of the levy. If this increase goes ahead in October, the quarry's new payment will be approximately €7,500 a month, or €90,000 a year. The annual increase will be €23,000. That is just an example of what will happen if this increase is sanctioned. We are talking about small businesses that pay rates and various other charges, rather than the businesses that are availing of the 12.5% corporation tax rate. It is impossible for them to budget or plan ahead.

As the Minister of State knows, Irish electricity prices are among the highest in Europe. A large increase in the PSO levy would exacerbate that imbalance. As the small businesses to which I refer are providing jobs, it is clear that issues like job creation, job security and the competitiveness of Irish companies in Ireland and abroad are at stake here. Companies that export are currently having to deal with the outcome of the Brexit referendum in Britain. The weaker sterling is causing its own problems. If this additional issue arises, these companies will have more difficulties.

Is it proposed that this increase will go ahead? I am aware that there was a consultation period and all of that. I am calling for this to be looked at again in the context of all the issues I have mentioned. I refer particularly to the effect it would have on small businesses. I appreciate that both commercial and domestic users would be affected by this increase, but in raising this matter today I am thinking particularly of job creation.