FSB dismay at withdrawal of electricity subsidy

The Federation of Small Businesses in the North has expressed serious concern at the announcement by the Department of Enterprise, Trade & Investment that it is to withdraw the subsidy application for businesses struggling with high electricity costs.

“This is extremely disappointing news that the (British) government are to withdraw the proposed subsidy application for business owners in Northern Ireland who are struggling with the high cost of electricity,” said FSB policy chairman Wilfred Mitchell.

“We were surprised to learn from European sources that the government had not adequately done their homework in their preparation for this proposal and was no real shock when the European Commission stated that it breached European State Aid requirements.

“Businesses in Northern Ireland have the highest electricity, insurance and crime rates in the UK and we still have the introduction of Water Charges to come in April 2007. These high costs are putting a huge burden on local business owners and are restricting the ability of our economy to be sustainable.

“If the government is serious about growing our private sector, then they need to announce practical assistance to local businesses.”