2026-04-28

130. Deputy Albert Dolan asked the Minister for Enterprise, Tourism and Employment the assessment his Department has made of the impact of recent fuel price increases on small and medium-sized enterprises, particularly in transport, construction and agri-related sectors; and if he will outline any targeted supports under consideration. [30164/26]

134. Deputy Aisling Dempsey asked the Minister for Enterprise, Tourism and Employment given that many SMEs are being disproportionately affected by the spike in fuel prices, and with businesses across the retail and hospitality sectors facing particularly heavy energy bills, the plans he has in place to help address these challenges; and if he will make a statement on the matter. [30074/26]

Has the Department prepared any assessment of the recent rise in fuel prices and the impact it is having on small and medium businesses in agri-related sectors and the construction and transport sectors?

I propose to take Questions Nos 130 and 134 together. As the Deputy said, the Government is under no illusion about the seriousness of the fuel price shock facing small- and medium-sized enterprises. We recognise that for many businesses fuel and energy are not optional costs. They are a core input that determine whether a business survives or fails. The Department has carried out a detailed sector-by-sector assessment and the evidence is clear that the impact is uneven but acute in particular sectors. In transport and haulage fuel is a direct and immediate cost and price spikes feed straight into cashflow threatening viability, particularly for small operators with limited margins. The agriculture and agrifood sector faces double exposure, with fuel and fertiliser costs along with transport and processing pressures. These costs hit hardest during peak seasonal activities. In construction fuel and energy costs are embedded in materials, logistics and machinery use. The impact here is real and can be built up over time. Beyond that, retail and hospitality SMEs are also facing sharp increases in energy bills that cannot simply be passed on without rising costs on competitiveness. This assessment has shaped a targeted Government response. Over March and April, we have introduced a substantial package of fuel supports, including VAT-inclusive reductions of 32 cent on the price of a litre of diesel, 27 cent on the price of petrol and 7.4 cent on a litre of green diesel. This is alongside a reduction on the NORA levy. Crucially, we have also deferred the planned carbon tax increase, providing immediate breathing space at a time of exceptional volatility. We recognise that some sectors also need more than just price relief. For this reason, we have introduced and increased the diesel rebate scheme to 12 cent per litre. We have also established a new road transporter's support scheme, with direct payments for haulage and coach operators, which will cost up to €40 million per month over the next three months. We have also introduced a €100 million fuel subsidy support scheme to assist farmers, contractors and fishers during peak fuel-use months. At the same time, the Government is looking at the structural costs to reduce further exposure altogether. This is being done through SEAI supports for businesses, which are being helped to cut energy demand permanently through audits, upgrades, renewable heat and microgeneration. Access to finance is also critical. It has been a barrier for many businesses to obtain the right finance to make these upgrades. The growth and sustainability loan scheme provides long-term, low-cost lending of up to €3 million, giving SMEs the capacity to manage shocks and invest through them. These immediate supports are also being reinforced through structural reform. I outlined earlier that the cost of doing business advisory forum is now finalising its report, which has been brought by SMEs, regulators and Departments through a policy process identifying real cost drivers and also outlining practical solutions and recommendations. While introducing immediate relief, we continue to monitor sharp rises in cost pressures to ensure that SMEs, jobs and our communities are protected in these uncertain times.

I want to make something abundantly clear and it is very important that I get this point across. Let us take someone in the agri-sector who is contracting day in, day out. If their machine is costing them an extra €200 a day to keep on the road, that amounts to a grand a week, which is over €50,000 a year. No business can survive that. That is why this intervention is absolutely critical. School bus operators are signed into a contract. They need to be supported. We are already having issues getting school bus drivers and operators. We need to ensure they are supported and they can survive and continue. This country runs a serious risk of seeing massive construction inflation if we cannot manage the costs facing both self-builders and those building our national infrastructure and other projects across the country. It is vital that as much intervention as possible is put in place to help these SMEs survive. What further interventions does the Government plan to make?

I welcome the supports that are in place but we need to recognise the immediacy of the pressure facing small- and medium-sized enterprises right now. For many small businesses, particularly those that deliver their own goods in a fleet of vans, the spike in fuel and energy costs is not something they can simply absorb. These are businesses operating week to week, dealing with rising bills, fluctuating costs and very tight cashflow. Unlike larger firms, many SMEs do not have the capacity to hedge energy costs or spread risk. They are exposed in real time and that is where the pressure is being felt most. They do not have the economies of scale enjoyed by bigger businesses. There is real concern about viable businesses being pushed to the brink, not because of poor management but due to external cost shocks that are outside their control. Will the Minister of State outline what representations he has made to the Cabinet for small- and medium-sized enterprises as part of the package for agri-contractors, hauliers, bus companies and fishermen? Where is the package for companies with fleets of vans or cars, taxi companies and businesses that are the backbone of our community?

I thank the Deputies for their questions and contributions. I and my colleagues in the Department of enterprise have placed SMEs in all sectors front and centre. They are not being left behind. We fully understand the cost pressures many of them face. The memo the Minister, Deputy O’Brien, brought to Cabinet today was supported right across the Government. It outlined the types of measures that will be introduced over the weeks ahead. There are other specific measures within the construction industry. The sector was referenced today at Cabinet and more needs to be done for it. On what we are doing and have done, we outlined the assessment that was made precisely to support those sectors that needed the intervention. If we take transport SMEs - our bus operators and haulage companies – they will receive direct fuel-linked supports because fuel makes up a huge proportion of their costs and they have felt disproportionate increases. Agricultural contractors are also receiving monthly targeted payments because they are exposed during seasonal periods. That is very important. Many businesses in retail and hospitality will see energy relief in terms of their distribution and they will have a significant VAT reduction to 9% on 1 July. We want to continue to ensure that businesses are supported. Notwithstanding this, there is not a one-size-fits-all list of measures that the Government can introduce. The package currently stands at €750 million to support jobs, communities and SMEs right across sectors. This is targeted, evidence-based and an intervention that the Government wants to continue, and we are not finished there yet.

I welcome the intervention and the sizeable package that has been put in place, but it is like any scheme or package that was rolled out over the past few years. It is about how quickly a business can get this into its bank account to provide cashflow and liquidity so it can continue in business and get through a difficult and turbulent time. It is critical that the supports that are put in place now are through a streamlined process that is easy to draw down. Where I come from in east Galway, my family runs an accountancy firm and many of our clients are agri-contractors, small businesses and construction companies, and I see the hoops they have to jump through in trying to draw down many business schemes. I remember the temporary business energy support scheme, TBESS. That was extremely complicated and complex and it ended up being handed to the accountants to do. It is critical that people are able to utilise this scheme and get it as smoothly as possible.

They are being left behind. The companies and businesses I spoke about previously, which have fleets of vans and taxis, which rely on vehicles and fuel to power their business, are being left behind. Looking beyond the immediate pressures, there are also broader concerns about competitiveness. If energy and fuel costs remain elevated, many SMEs will struggle to remain competitive, particularly when compared with businesses in other jurisdictions which may have lower operating costs or greater state support. Will the Minister of State outline what longer term measures are being considered to protect the competitiveness of Irish SMEs, especially in energy-intensive sectors like retail and hospitality? How will the Government ensure that small businesses are supported not just to survive this period but remain viable in the future?

I certainly disagree that SMEs are being left behind. This is one of the most substantial packages across the European Union. It is all about supporting jobs and those who are most impacted but also ensuring they can absorb some of the cost increases that they are facing. We cannot cushion all the price increases. There is a reality here that many governments are trying to grapple with. A sum of €750 million is really substantial. The Minister, Deputy Heydon, met many of the pillar banks as recently as last week, advising them that these schemes are in place and that they would provide working capital to many of these businesses in the short term until they get this money into their bank account. That was received well. We want the scheme to be simple in nature. We are all about simplification and being fast and agile. I expect that would be the approach for many Department officials with regard to trying to get this up and running. Looking at the more structural interventions we need to reduce our reliance on fossil fuels, we are looking at a large investment, through price review 6, PR6, into the grid and infrastructure, in ESB Networks and EirGrid. That will ensure we have the renewable energy deployment required right across the country, that we have energy efficiency supports and that we are looking at large-scale industrial decarbonisation. That is backed by over €300 million in environmental aid. We all know we cannot continue to go from shock to shock and not build resilience into businesses. That is why the Tánaiste is working through the Department of Finance in looking at hybrid heat recovery pumps, hydrotreated vegetable oil, HVO, and other energy efficiency measures to reduce that burden either through tax measures or through grant supports and subsidies. They will have a meaningful impact for businesses across the country.