Offaly economy facing particular challenges, local businesses tell Finance Minister

UNCERTAINTY remains for businesses in Offaly and the Midlands, despite new supports announced in Budget 2023, two leading members of Tullamore Chamber said today (Wednesday, October 5).

Local businesses met Finance Minister Paschal Donohoe when a Fine Gael 'budget roadshow' arrived at the Tullamore Court Hotel on Wednesday morning.

Anthony Hanniffy, from the Tullamore door and kitchen manufacturer Agetek, the current Tullamore Chamber president, and Dolan's pharmacist Roger Guiney, a former president (pictured below with Darren Butler, Bank of Ireland, Tullamore), gave the budget measures a cautious welcome.

Along with the phased €600 household electricity credit, the Government is supporting businesses by setting up a €1.2bn scheme where up to 40% of the increase in their energy bills will be paid for them by the State.

Mr Hanniffy said the budget is welcome but he feared the Temporary Business Energy Support Scheme might not be enough for some businesses.

“We don't really know. It's just such an uncertain time,” said Mr Hanniffy. “The reassuring thing was [the minister] did indicate he would re-look at it, they've no idea yet what the cost is going to be, they've put aside €1.2bn for it.

“It could come in less, it could come in more. But he did say he would monitor it so he was not saying 'We will make changes' but he's going to keep an eye on it anyway. So that to an extent was reassuring but we just don't know if it's going to go far enough.”

Mr Guiney said businesses have already had to face Brexit and climate action along with other challenges and were now confronted with the energy crisis which will hit customers' spending power.

“We're not seeing in the economic figures yet what the slowdown is nationally or at local level. But it's the small business – at what point are people not going to be able to spend any more? Will the credits help them enough?” he asked.

“They will for sure help them but there is uncertainty and uncertainty stops you from moving forward and making investment decisions. So we just don't know what's ahead of us despite assurances.”

Offaly has its own particular challenges, given its previous reliance on the bogs and it continued dependence on construction materials, said Mr Guiney.

“Here in Offaly our indigenous industry came out of the ground, out of the turf, sand and gravel, so we've a lot of concrete-related businesses here and they're obviously worried about the concrete levy that's coming at them,” said Mr Guiney.

“They're large exporters to the UK, they have to deal with currency issues and everything else on top of that. That's a very local matter here for us in the Midlands and in Offaly.”

Speaking to the media after he met the businesses, Minister Donohoe strongly defended the controversial 10% levy on concrete products.

While he will “engage with the sector” he said the levy must form part of the overall cost of mica redress.

“We're making commitments of huge amounts of taxpayers' money with other decisions still to come, we have to be open about the need to pay for some of this cost in some way. And that is what this levy is about,” Minister Donohoe said.

“Any other measure that I brought forward would also have drawn criticism, would also have had pros and cons, and I believe this is a measure that is proportionate, that can work.”

He said the State has committed itself to spending €2.7bn on mica redress but the levy is needed in addition “if we want to keep on spending money on everything else that we're doing at the moment”.

“I'm very committed to this kind of measure, we need the money but as with everything in the Finance Bill, I'm going to get lots of feedback, we're here to consult with businesses and to hear carefully what they have to say.”

He indicated he believed the temporary business energy support scheme, where firms will receive up to 40 per cent of the increase in their electricity bills, is “sufficient” but it will be reviewed.

He encouraged businesses to enrol with the scheme now and “after a month has elapsed we'll have a far better idea regarding how many businesses will be on the scheme, what it's costing us, and what the average level of support is to different businesses”.

“And then we'll make an evaluation of the scheme at that point.”

He said the scheme, costed at €1.2bn for its first six months, is a “really significant intervention” to back businesses and protect jobs.

“I don't believe there's a need to enhance it at the moment,” he said.

Minister Donohoe also said that through Energy Minister Eamon Ryan's engagement with the energy providers, he hopes to soon have clarity for 'pay as you go' customers who are fearing disconnection.