Matt Shanahan presses for urgent SME energy support

It is good to see the three enterprise ministers here this morning taking questions. To Aniste, my question relates to expanded scope, any expanded scope that is being offered to Enterprise Ireland to financially support indigenous industries, particularly those who find themselves facing energy bills that are well outside the 10,000 proposed additional increase to energy supports. Understandably, a lot of businesses are very worried heading into the winter period. The cost of energy and the cost of doing business generally is rising. Interest rates are also going up and consumer confidence is waning. So businesses need help with their energy bills and the government has introduced a significant package in the budget to help them over the coming months. This morning with Minister McGrath I launched the 200 million euro Ukraine enterprise crisis scheme. It will be implemented through Enterprise Ireland, the IDA and Udraal Sogailtukta. It is now open for applications and it is not limited to client companies of those agencies. It will assist viable but vulnerable firms of all sizes in the manufacturing and internationally traded services sector that are suffering liquidity problems or are affected by severe rises in energy costs as a result of Russia's invasion of Ukraine. The scheme will operate under two streams and will provide a minimum of 20,000 and up to half a million per firm to ensure there is sufficient liquidity available in the markets, thereby reducing additional costs for firms. For energy intensive companies impacted by exceptionally severe increases in gas or electricity costs, the scheme will provide for a minimum of 20,000 euros and a maximum of 2 million euros per firm. In line with the government's commitments under the Climate Action Plan, the scheme also recognises the importance of encouraging sustainability and successful applicants will be required to put in place an energy efficiency plan. I should point out that this scheme is only for manufacturers and those involved in the internationally traded sectors. The scheme will work alongside other measures announced in the budget, for example, the Ukraine Credit Guarantee Scheme, which will provide 1.2 billion in low-cost lending to business and also the temporary business energy support scheme administered to the revenue commissioners, and that is being finalised at present and will be, we estimate, will cost about 1.25 billion, but will provide energy subsidies to businesses of that level. Thank you. Thank you. Thank you. Thank you, Mr. Hall. Thank you. There is a urgent need for financial support across the SME trading sector, and I have mentioned to you before the need, I believe, for specific sectoral support. I would highlight a sector that is in real trouble, the food processing and food retailers. I recently wrote to the finance ministers regarding a South East food processing company which has seen their monthly bill go from 8,000 Euro to 48,000 Euro. Last night I was in discussion with the craft butchers of Ireland, over 650 butcher shops looking at increases in their electricity rates going from under €1,000 to over €4,500 per month. Absolutely unsustainable, and I think two butcher shops closed in the last week alone in the country. There is a need for real urgency here. I know you have said the T-Best scheme is due to open, can you give any clarity as to when this scheme can be accessed? Because these businesses will not remain viable for too long more, and on average these small butcher shops are very much integrated in the rural regional economy, they often imply between two and eight people each, and they are an indigenous sector that needs to be badly supported. This particular scheme which was announced this morning is now open for applications through the agencies. I will have to double check to be certain, but I think food processing should be covered under this scheme because it is the manufacturer of food products, and a lot of food is exported. Most of our food is exported, so I would anticipate that those companies could apply under this scheme. They do have to demonstrate that their energy bills constitute a significant amount of turnover and that their profits are down. So this may be an option for some of them, but I do need to be frank as well with the House. We are not going to be in a position to fully cover the cost of increases in electricity bills for business any more than we can do it for households. There are limitations on the budget even though our economy is going well. We know the effect of unlimited price promises across the water. We are not going to do that. We are not going to be able to fully cover the increased cost unfortunately, and also we are covered by EU temporary crisis framework state aid rules, and they are there for good reason, to protect the taxpayer and also to make sure that different countries do not engage in unfair competition. Thank you. Thank you. Thank you. Thank you. I welcome the news there of the Ukraine scheme, and I think hopefully this company will be able to access funding there. Could I just highlight, you know, there are incredible challenges right across the business and SME sectors, and particularly, as I say, for any of those who are particularly food processors, anyone who are using large amounts of gas electricity have seen their business model completely destructed. I think we need to have a clear strategy in terms of what we are actually trying to do. I accept, I am sure, as every other member of the House does, that we cannot save every business, but I do think we need to have a serious look at the businesses that can be saved and particularly, as I say, the businesses that contribute to Tourism Ireland and to our tourism offering. The hospitality sector and certainly the retail sector are a part of that. So I would ask you, if you can, I am not sure if you did clarify, when the TBEST scheme will be actually open and available to access funding from, I think that is what these small businesses need, particularly now, just some relief from the bills that they are facing. Thanks, Deputy. I just clarified that the Ukraine Enterprise Crisis Scheme, which was announced this morning, is now open for applications. The Temporary Business Energy Support Scheme requires legislation, so the Finance Bill has to get through this House and the Shannon before that can be up and running. It is going to be administered by the Revenue Commissioners. Presuming we get the Finance Bill through these houses, and I believe we will, we would expect it to be up and running by the end of November or early December, but any payments will be backdated, so they will be backdated to September and businesses can have that assurance that they will receive money through the Revenue Commissioners before Christmas to help them with the energy energy bills, not just going forward, but backdated to September. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.