James O'Connor (Cork East, Fianna Fail)
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58. To ask the Minister for Enterprise, Trade and Employment if he is concerned regarding the high cost of energy prices for businesses; what actions his Department is taking outside of those announced in Budget 2025; and if he will make a statement on the matter. [43555/24]

Dara Calleary (Mayo, Fianna Fail)
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This Government has adopted an proactive approach to supporting Irish businesses across multiple crises over the last number of years. It is important to acknowledge the challenges that firms have faced over the last number of years, and I am aware of the concerns of businesses facing increased energy costs. As part of Budget 2024, this Government provided a €257 million package for my Department in the form of the Increased Cost of Business (ICOB) grant. My Department has to date provided €252m to Local Authorities to support almost 75,000 businesses. This scheme was designed to help SMEs.

The latest data available from the Central Statistics Office shows that there has been a significant improvement in wholesale electricity prices. The price of wholesale electricity in August of this year was 5.6% lower than in August 2023, and 74% lower than the peak recorded in August 2022. The Wholesale Price Indices for Energy Products – that is, fuels purchased by the manufacturing industry – fell by 5.4% over the year to August 2024. Whilst energy costs have fallen from their peak, I recognise that they are still above historic norms.

Building on the successes of the ICOB scheme, Budget 2025 included a €170m Power Up grant for my Department, providing further financial support to c.40,000 hospitality and retail businesses. I will shortly launch applications for the Power Up grant. My Department will ensure that the funding is administered and paid to eligible firms before the end of this year. Payments will be administered through the local authorities, as was the case with ICOB. This will bring the total amount of grant aid to Irish businesses to close to €430m in 2024 alone. The Power Up grant, in tandem with the enterprise tax package, provides for total support for businesses of €386m in Budget 2025.

More broadly, the Taoiseach chaired a Competitiveness Summit on 2nd September. In particular, the Summit focused on the need to increase infrastructure delivery, and in this regard, the additional €750 million in capital expenditure announced in Budget 2025 in relation to electricity infrastructure is very welcome. This will aid Ireland’s long-term competitiveness, benefiting large and small firms alike.

I also recognise that there are other, non-energy costs that are impacting firms. My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of changes to working conditions earlier this year. On foot of the findings from this assessment, a range of measures were brought forward to assist businesses in adjusting to these increased costs as well as to improve the cost competitiveness of firms more generally. The measures included increases to the Employer PRSI threshold, increases in the lending limit for Microfinance Ireland from €25,000 to €50,000, as well as improvements to schemes such as the doubling of Innovation Grants to €10,000, and increases in the Energy Efficiency Grant Scheme to €10,000 with grants of up to 75%, doubling of the Trading Online Voucher and improvements to the Digital for Business Consultancy Scheme.

These actions demonstrate the Government’s commitment to Irish business. I will continue to monitor developments in the business environment and in particular, developments in business costs in considering any future action.