Seanad debates

Wednesday, 14 September 2022

2:30 pm

Photo of Garret AhearnGarret Ahearn (Fine Gael) | Oireachtas source

I thank the Minister of State for attending for this important discussion. This issue affects every house and business in the country. Much of the debate has been focused on households and their costs. One of the major issues businesses have is uncertainty as they have no idea what is coming in the budget. They have no idea how to manage in the next few weeks or what they will do in the winter months. People have a fair idea of what households are going to get. Figures of €500 and €600 have been mentioned a number of times. I do not know whether this is true but households have an idea of the kind of support they will get from the Government. From listening to comments made by the Taoiseach, the Tánaiste and the Minister, Deputy Ryan, they are certainly of the view that households will be supported over the Christmas period and into next year. I suspect some money will be held back for next year because we do not know where we will be in a number of months.

It is clear from talking to businesses that they have no idea what the Government will do for them. They are in a very difficult position. The problems they face range. The annual electricity bills of businesses such as Centra, Spar and SuperValu stores have gone from €90,000 to €220,000, which is a massive increase. Energy bills for coffee shops have gone from €5,000 to €10,000 and the bills for pubs have also increased massively. News reports from the UK show that pubs are closing because of the cost of energy. We obviously do not want to get to that point.

The fear I see among people is that they believe they may have to make a decision to reduce production because of the cost of electricity. Reducing production reduces employment. We are very fortunate that more than 2.5 million people are employed in this country. We do not want to get to a position where, through no fault of their own, businesses are having to make harsh decisions that have an impact on employment. They do not want to do it but they are in a precarious position. If we can do anything, it should be to give businesses some sort of certainty over the winter months.

Another issue people raise with me concerns supports. Businesses want to change their ways. Sometimes we struggle to get individuals, for example, farmers, to change their ways and become more environmentally friendly. Businesses want to do this. They want to purchase solar panels and invest in renewable energy but they do not have the types of supports that are given to households and individuals. Something has to be done to support businesses this Christmas and over the winter period in addressing the immediate issue. However, they also need grants or some sort of support to help them change their ways by purchasing solar panels and investing. Many businesses are doing this already and spending massive money. Centra shops and so on are now investing €130,000 in renewable energy to reduce their heating and energy costs because their bills have gone from €90,000 to €200,000. They need to be supported in this because it is a massive investment. There is a long-term effect obviously. However, if we are going to support every household in the country, surely we can also do it for businesses.

I would appreciate an answer on this next point because nobody ever has one. Someone living in a house on the main street in Clonmel can get electricity as a private domestic unit for approximately 20 cent per kilowatt hour. However, if someone else opens a coffee shop next door, that business will pay over 50 cent per kilowatt hour. The product being provided is exactly the same. There is no difference between electricity that goes into a private household and electricity going into a small business, yet the price is totally different. The only thing I have ever been told by someone who works in the sector is that one of the reasons the price is much higher is that businesses are less likely to pay the bill fully than households, which will always pay. This is an outrageous viewpoint because it means businesses that pay their heating bills are subsidising those that may not pay them.It makes no sense that the same product goes to two different buildings for a totally different price. Businesses feel like they are being taken for whatever. It does not seem fair. At a time when they are at the pin of their collar, simple issues like that need to be addressed. Those energy companies need to answer honestly about how and why that is happening.

The most important thing is to give businesses certainty and hope that they will be supported. We have been through crisis after crisis in recent years, including Brexit, Covid and now Putin's war in Ukraine. We have supported those businesses through Covid and I do not think we are a Government that wants to let them go under this winter because of energy costs. They know the Government has supported them for the past two years when they needed it. They are calling on us again and I ask that the Minister of State and the Department give that support. I know they will do so, but ask them to give clarity as quickly as possible.

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