Seanad debates

Thursday, 4 May 2023

Nithe i dtosach suíonna - Commencement Matters

Business Supports

9:30 am

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

I thank the Minister of State for being here. The reason I tabled this Commencement matter is that there are an awful lot of businesses in County Tipperary that, over the past year, have tried to look at ways to change their business expenditure and reduce costs. Obviously energy costs have been a significant challenge for businesses over the past year. It is worth noting, and I know the Minister, Deputy McGrath, said it in an interview a couple of days ago, how the wholesale costs of energy have dramatically reduced, but the costs on businesses and homeowners have not reduced to the same level at all yet. It is quite striking how long that takes, when one looks at how quickly costs went up.

The reason I ask the Department of the Environment, Climate and Communications to look into this matter is that is a long-term investment businesses can make, where they can get the potential investment back within five years. It used to take about seven years, but now they will be able to get that back within five years. Most businesses do not have a massive cash flow to be able invest in an awful lot of things. What they need to do much of the time is invest in and grow their own business and buy stock, if that is what they are doing. Most businesses do not have the capability to find €50,000 or €60,000 to put up solar panels. I know two businesses in County Tipperary that have spent more than €50,000 in the past six or nine months on solar panels to reduce their energy costs, but they had to fork out all of that money and they got no support whatsoever from Government; zero.

The most frustrating thing businesses find is that we are giving grants through the Sustainable Energy Authority of Ireland, SEAI, of up to €27,000 to homeowners to retrofit their houses through insulation, solar panels and a range of other options and the State will pay 40% of the costs for farmers willing to invest in solar panels and yet there is nothing for businesses. The changes this would make for businesses in the area I am from would be significant.

If ever it comes to a point where the Department of the Environment, Climate and Communications decides to bring this measure in, it needs to be retrospective. Many businesses have made changes in 2022, as part of a long-term investment of reducing their bills. They should not be penalised if Government is slow in bringing in a scheme to support businesses, just because they were early to change to their ways. I ask that we look at some way of supporting businesses. This is essentially meeting our EU obligations with regard to climate change. I do not see any reason the Minister or the Department could not be supportive of it. If we are willing to support homeowners and farmers, why would we not be willing to support businesses? The Department needs to play a leading role in this to support businesses. I know of two businesses in particular that are putting themselves under considerable pressure with the amount of money they have invested in solar panels. They have to risk other areas of their businesses just to be able to do so. I ask that the Minister and the Department take this matter seriously.

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