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Dáil

Written answer

Small and Medium Enterprises

161. Deputy Barry Ward asked the Minister for Enterprise, Tourism and Employment the position regarding any work ongoing within his Department to help support small businesses in the face of increased fuel costs; and if he will make a statement on the matter. [29988/26]

Comment on this

175. Deputy Edward Timmins asked the Minister for Enterprise, Tourism and Employment the impact of fuel price increases on small rural machinery contractor enterprises. [30528/26]

Comment on this

178. Deputy Shane Moynihan asked the Minister for Enterprise, Tourism and Employment his views on whether small and medium-sized businesses are being hit hardest by rising fuel costs, particularly those in energy-intensive sectors such as retail and hospitality; the assistance he is providing in this regard; and if he will make a statement on the matter. [30409/26]

Comment on this

189. Deputy John Connolly asked the Minister for Enterprise, Tourism and Employment the plans he has in place to help businesses cope with the cost impact of the US-Iran war; and if he will make a statement on the matter. [30058/26]

Comment on this
Peter Burke Minister for Enterprise, Tourism and Employment Fine Gael

I propose to take Questions Nos. 161, 175, 178 and 189 together.

Government recognise that the cost of doing business has been a significant issue for firms in recent years, driven by wider global inflationary pressures, particularly energy costs. My Department is closely monitoring developments in energy markets and proactively evaluating the implications for businesses, including through ongoing engagement with the enterprise agencies.

The impact of rising fuel costs will vary significantly across sectors of the economy, reflecting differences in energy intensity, transport reliance, and input structures. First-round impacts are most acute in transport and agri-food, where exposure to diesel, fuel, fertiliser, and logistics costs is highest. These sectors face immediate cost pressures. Secondary impacts are evident in construction, manufacturing, and hospitality, where energy inputs, materials, and transport costs are important drivers. Pressures here are material but more diffuse and may build over time. High-tech and pharmaceutical sectors are less exposed in the near term, with impacts largely indirect – arising through supply chains, packaging, and energy inputs rather than direct fuel dependence.

The Government is conscious of the pressures this volatility is placing on businesses, particularly SMEs. Over March and April, the Government introduced a substantial package of fuel supports, including measures such as reductions in fuel duties and targeted supports for sectors like transport, agriculture and fisheries, aimed at easing cost pressures and mitigating the impact of rising fuel prices on the wider economy. In addition to the NORA levy reduction, these measures include (VAT inclusive) excise changes, that bring total reductions:

• To 32 cent on diesel (VAT inclusive);

• To 27 cent on petrol (VAT inclusive);

• To 7.4 cent on green diesel.

In addition, Government is deferring the planned increase in carbon tax, scheduled for May 1st, until the Budget. This will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels.

Apart from excise, additional measures include:

• An increase in the maximum repayment allowable under the Diesel Rebate Scheme, from 7.5 cent up to 12 cent per litre of diesel;

• An extension of the fuel allowance season by an additional four weeks;

• Establishment of a new Road Transporters Support Scheme (RTSS), to support the haulage and coach sector; and,

• A comprehensive €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs.

This demonstrates a responsive and targeted policy approach to addressing acute cost pressures while supporting broader economic stability. We also recognise the importance of reducing Ireland's exposure to such shocks. This underlines the need to accelerate the transition towards greater energy independence. Significant investment is being made in renewable energy, electricity grid infrastructure, and energy efficiency, with reducing reliance on fossil fuels central to improving resilience against current and future energy price shocks.

My Department provides a broad suite of supports to help businesses lower energy consumption, improve operational efficiency and reduce cost exposure. A communications strategy will be launched shortly to increase awareness, uptake and impact of business energy supports by reframing messaging, simplifying access pathways and using trusted, real world examples to demonstrate value.

The SEAI administers a suite of supports aimed at reducing energy demand and costs. Through the “Easy Wins” campaign, businesses are encouraged to adopt practical, low-cost measures with rapid payback, including energy management training and energy audits. Financial supports are available through Rapid Approval Grants, such as the Business Energy Upgrade Scheme and the Non-Domestic Microgeneration Grant, as well as Tailored Support Grants including the Support Scheme for Renewable Heat, the Community Energy Grant, and supports for energy-efficient design.

In addition, the Growth and Sustainability Loan Scheme provides long-term, low-cost financing to SMEs and small mid-caps, including those in agriculture and related sectors, with loans ranging from €25,000 to €3 million over terms of up to 10 years, including unsecured lending of up to €500,000. Work is underway on a possible expansion of this scheme.

Government has also allocated €300 million in Environmental Aid to support decarbonisation among large industrial firms supported by Enterprise Ireland and IDA Ireland. As of January 2026, 41 projects with a combined value of €154 million have been approved across sectors such as manufacturing, food and beverage, and pharmaceuticals, supporting reductions in energy use and enhancing competitiveness.

In addition, the Cost of Business Advisory Forum was established to bring together stakeholders across sectors to identify cost pressures and consider practical measures to address them. The Forum’s report is expected in the coming months.

In responding to the current challenges, my Department will continue to act proactively and in close coordination with key stakeholders to support enterprise competitiveness and resilience.

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