Written answers

Tuesday, 4 December 2007

Department of Enterprise, Trade and Employment

Economic Competitiveness

9:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 345: To ask the Minister for Enterprise, Trade and Employment if he has assessed the effect of recent rising trends in oil prices on each of small, medium and large businesses in the State; the proposal he has to alleviate the increasing cost of this commodity to such businesses; and if he will make a statement on the matter. [32334/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We are price takers when it comes to buying energy needed to run our economy. We are subject to the same fossil fuel cost pressures experienced in other economies.

The Government is very aware that both energy supply and cost is of strategic, competitive importance. Our approach to tackling the issue of supply and cost is clearly set out in the Government's Energy Policy that was published earlier this year. This aims to encourage alternative and renewable energy supplies, promote efficiency in the energy market (for example through the All Island Electricity Market that came into effect on 1 November) and encourage conservation and fuel saving through behaviour.

The Taoiseach and the Minister for the Environment, Heritage and Local Government recently launched an important and extensive campaign to highlight the importance of energy saving in the context of climate change. This is in addition to the Power of One campaign that identifies where business and consumers can reduce energy consumption and cut their energy costs.

Furthermore, Sustainable Energy Ireland (SEI) vigorously promotes and advises on energy efficiency through a range of programmes and is eager to provide its knowledge on energy conservation and cost control to the SME sector. The Government has provided considerable funding to SEI to enable the agency to significantly expand their work in this area. Under my own Department, Enterprise Ireland provides support for companies that through their innovation strategies, identify energy saving opportunities.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 346: To ask the Minister for Enterprise, Trade and Employment if he has assessed the effect of rising trends of local authority charges on each of small, medium and large businesses in the State; and if he will make a statement on the matter. [32335/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Minister for Environment, Heritage and Local Government has overall responsibility for guidelines and schemes in relation to local authority charges. In the first five-year period of operation of the Development Contribution Scheme the amount collected in development contributions increased significantly. This reflected, in part, the increasing demand for infrastructure arising from our unprecedented levels of economic growth.

Arising from concerns raised by the Small Business Forum and others about the level and range of Development Contributions levied by Local Authorities, I raised this matter with my colleague, the Minister for Environment, Heritage and Local Government.

An Inter-Departmental Committee was set up to look at the broad operation of locally-determined Development Contribution Schemes and the related Development Contribution Guidance. It was recognised that securing future income streams from development contributions depends on achieving the appropriate balance between the necessary levels of funding now, and the need for local authority areas to continue to represent an attractive location for future investment.

The Report of the Interdepartmental Committee was published in April 2007, and Guidance reflecting the findings of the Report was issued to Local Authorities in May 2007. The revised Guidance to Local Authorities, furthermore, emphasised the importance of consultation with local interests and, in addition to the consultation process required by legislation, all draft Development Contribution Schemes must now be submitted to the relevant County Development Board for comment.

I should also add that an appeals process already exists whereby businesses can appeal Special Development Contributions and the application of a development levy where a developer feels the scheme has not been applied in accordance with the terms set out by the Local Authority.

My Department will continue to work with the Department of Environment, Heritage and Local Government to ensure fairness in the imposition of Local Authority charges on the business community.

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