Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

214. To ask the Minister for Enterprise, Trade and Employment when the Enterprise Forum last met; if the forum has discussed rising energy costs within the industry sectors; and if he will make a statement on the matter. [20995/22]

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

215. To ask the Minister for Enterprise, Trade and Employment if he will report on the consultation that his Department is holding with industry representatives in relation to rising energy costs; the mechanism by which the consultation operates; and if he will make a statement on the matter. [20996/22]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 214 and 215 together.

My Department’s Enterprise Forum met most recently on 16th March 2022 and was convened at my request to hear first-hand how the war in Ukraine is affecting businesses in Ireland. One of the main issues raised at that meeting was concern over energy security and prices.

The Government has already implemented several measures to help ease the impact on enterprises of energy price increases including reductions in VAT and excise on some fuels, as well as a temporary grant scheme to hauliers.

My Department is part of a whole of Government response to the economic and social impacts of rising energy costs and is leading on the Government response to the business impacts of this, in particular.

Government Departments have been consulting with stakeholders on specific measures that could be considered to ameliorate the short to medium term challenges to energy security. The Energy Supply Emergency Group is an inter-departmental and inter-agency group with responsibility for informing the Government response to the impact of rising energy costs on business, in addition to security of energy supply more generally, and a longer-term reduction in Ireland’s dependency on imported oil and gas.

Under the aegis of this Group, my Department has established the Business Energy Users Sub-Group to lead on consultations with business and industry to learn about the specific impacts on Irish businesses, and to hear their concerns and perspectives on the appropriate and most effective tools for policy action. The work of this sub-group, as part of the wider Energy Supply Emergency Group has informed the National Energy Security Framework which was launched by the Government on 13th April 2022 and which sets out how Government can help households and businesses with their energy security needs in the context of the war in Ukraine.

In terms of business impacts, the Framework notes the European Commission’s recently launched State Aid Temporary Crisis Framework for businesses affected by the energy-related aspects of the Ukraine crisis, and the opportunity that this presents to Member States to consider what specific instruments and supports might be needed in the near-term in order to help vulnerable but viable businesses to overcome the acute impacts of the current crisis.

In terms of short-term temporary supports for businesses, there are already a number of effective schemes in place resulting from Government’s response to the Brexit and Covid-19 crises, and the Government will now be considering whether, and to what degree, such schemes might be pivoted to firms impacted by the Ukraine crisis. In the near term, businesses will be also looking for signals and reassurance that underlying capacity and security of supply issues are being improved in a strategic manner and in collaboration with authorities across the EU and the UK; and the Government will provide clear and practical guidance to business users on ways of maximising their energy efficiency and thus helping to manage overall levels of demand across our energy networks.

Under the Climate Action Plan, Irish businesses and industry have already embarked on an ambitious plan of action to transition away from fossil fuels and make their operations more efficient and sustainable. This has required a strategic, medium and longer-term approach to business positioning and investment, and the pace of such investment will now need to be accelerated as this can also address Ireland’s relative dependency on imported energy, and in doing so, secure our energy future.

I would also encourage firms to take this opportunity to achieve greater energy efficiency and to begin their decarbonisation transition. For example, the Climate Toolkit for Businesses helps firms understand their current carbon footprint and under the EU's National Recovery and Resilience Fund, later this year we will be able to help SMEs through the Climate Enterprise Action Fund. There are also a range of supports available for business from the Sustainable Energy Authority of Ireland to improve energy efficiency and to reduce energy costs.