Richard Bruton (Dublin Bay North, Fine Gael)
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123. To ask the Minister for Finance if he has evaluated the financial status of small businesses in the post-Covid period; the extent to which data from the Revenue Commissioners indicate a difficulty in meeting payments; if he can shed light on the reasons for the low take-up of the business energy cost supports offered by the Revenue Commissioners; and if he will make a statement on the matter. [11390/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Small and medium businesses are the foundation of the Irish economy, accounting for 99.8% of all enterprises and the majority of employment in the State. Their importance to our economy is reflected in our Programme for Government commitments.

During the COVID-19 pandemic, Government strongly supported small businesses. For example Revenue supported businesses by suspending normal debt collection activities and implementing the Debt Warehouse Scheme to provide businesses, and in particular small businesses, with vital liquidity support. A significant extension to the scheme was announced in October 2022 in light of the challenging economic situation that businesses continue to face. Under the scheme, most businesses with warehoused debt were due to enter into an arrangement with Revenue to commence repaying that debt by the end of 2022. This timeline has been extended to 1 May 2024. This means that businesses no longer have the challenge of making arrangements to repay their warehoused debt until 1 May 2024 and this significant additional time should particularly support the financial status of small businesses. Importantly also, businesses are still able to avail of the reduced 3% interest rate from 1 January 2023, as opposed to the general interest rate of 10%, when they come to pay the debt.

I am advised by Revenue that almost 67,000 individual customers are currently availing of the Debt Warehousing facility with €2.3 billion warehoused. However, at the commencement of the scheme over 250,000 customers were eligible, with declared debt of €31 billion qualifying for warehousing. Almost 93% of these eligible taxes have been paid to date, with the balance of €2.3 billion currently warehoused. Also, to date, almost 2,000 customers have voluntarily agreed payment arrangements for warehoused debt of €72 million, despite the fact that there is no obligation on them to do so until May 2024.

It remains a key condition of the Debt Warehousing Scheme that current liabilities are filed and paid on time. Revenue is actively engaging with businesses, including small businesses, to ensure they are complying with this key condition in order to retain the benefits of the scheme. Where payment difficulties arise, particularly in relation to current tax obligations, I am assured that Revenue will work proactively with businesses who engage early to resolve these payment difficulties. Revenue has a proven track record in agreeing flexible Phased Payment Arrangements to allow for the repayment of debt over a period of time.

Revenue’s expectation is that the extended timeline to 1 May 2024 for entering into arrangements for repaying warehoused debt, together with flexible payment arrangements, will assist most businesses to work through any difficulties and will satisfactorily address the repayment of their tax debt, including any warehoused debt, over an acceptable period of time. The majority of taxpayers want to do the right thing and file and pay their taxes on time, and I am advised by Revenue that this remains the case in the post-Covid period.

Sections 100 to 102 of the Finance Act 2022 make provision for the Temporary Business Energy Support Scheme (TBESS). The scheme provides support to qualifying businesses in respect of increases in their electricity or natural gas (energy) costs. As of 1 March 2023, 25,423 businesses have registered for the scheme. A total of 23,833 claims have been approved with a value of almost €52 million.

I have announced a number of significant enhancements to the scheme so that additional businesses can benefit from this vital support. With effect from 1 March 2023, the monthly limit on aid under the scheme will increase from €10,000 to €15,000 per qualifying business, subject to an overall cap of €45,000 in cases where a business is carried on from more than one location. Also from 1 March, the level of relief will increase from 40% to 50% of eligible costs. The threshold for qualification will be reduced from a 50% increase in electricity or gas costs to 30% increase (to apply retrospectively from 1 September 2022). The scheme will also be extended to 31 May 2023. Some of these changes require State aid approval and, subject to receiving that approval, will be provided for in the forthcoming Finance Bill.

In addition to the above measures, a range of direct and indirect schemes were introduced to support SMEs in response to the challenges posed by COVID-19 and the invasion of Ukraine, these include the Strategic Banking Corporation of Ireland (SBCI) SME Energy Efficiency Loan Scheme, the Ukraine Credit Guarantee Scheme and the Growth and Sustainability Loan Scheme (GSLS) which is due to be launched at the end of Q1 2023.

Darren O'Rourke (Meath East, Sinn Fein)
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124. To ask the Minister for Finance the number of businesses in County Meath that have applied for the business energy support scheme; the number that have been successful; and if he will make a statement on the matter. [8319/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs over the winter months.

Details of the scheme are set out in Finance Act 2022. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023. However, subject to State aid approval, this period is to be extended to cover energy costs up to 31 May 2023. It is available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria.

The TBESS operates by reference to bills for the metered supply of natural gas and electricity. It is available to eligible businesses whose average unit price of electricity or gas for the relevant billing period has increased by a certain percentage as compared with the average unit gas or electricity price in the corresponding reference period in the previous year. Currently the relevant percentage is 50% however, as recently announced, and subject to State aid approval, this percentage is to be reduced to 30% on a retrospective basis, which will allow more businesses to qualify. Amounts payable under the TBESS are calculated based on a percentage of the increase in an electricity or natural gas bill as compared to a bill amount in a corresponding reference period in the previous year. Currently, the payment is based on 40% of the increase however, subject to State aid approval, this is to be increased to 50% for claim periods from 1 March 2023.

Revenue publishes detailed statistical reports in relation to the TBESS which are updated on a weekly basis. These reports are available on Revenue’s website. The registrations and claims for County Meath as of 1 March 2023 are as follows: