Family businesses seek a one off grant to tackle energy costs

Firms seek a payment similar to the €200 Household Grant

They call for a dedicated taskforce to address the rising cost of doing business in Ireland as well.

A family business representative body has called for a one-time grant to offset the cost of energy increases, akin to the €200 household payment.

The Family Business Network (FBN) is also seeking an extension to the tax warehousing scheme.

“Family-owned businesses employ about a million people in over 170,000 firms across the country. Regretfully, rapidly rising costs of doing business in Ireland are putting thousands of jobs across the country in indigenous and family-run businesses at risk,” said John McGrane, executive director of FBN said.

Bord Gáis Energy recently confirmed that, from April, the average electricity bill and gas bill will rise 27% and 39% respectively. These increases are due to the high levels of inflation and pressure on supply chains caused by the war in Ukraine.

The Minister for Finance Paschal Donohoe this week introduced a reduction to 9% in the VAT rate for gas and electricity from May 1 until the end of October and a reduction in the excise tax on marked gas oil by 2.7%, to further offset cost increases on farmers and others in the agricultural sector from May. However, the minister stated he has "no more capacity" to create additional tax measures after these ones to tackle the cost of living until October's Budget.

The FBN have suggested that government establish a dedicated taskforce to address the rising cost of doing business in Ireland as well.

“From speaking with local firms across the country, the inflation that we are seeing is not a transitory phenomenon that many predicted it would be. As evidenced by recent figures, it seems that this inflation has not reached its peak and will likely put serious pressure on the public as well as businesses,” said Mr McGrane.

“While businesses will adapt to this, as they always do, our members believe that not enough is being done to support them while they make this transition to higher costs,” he said.

FBN Ireland is the Irish arm of International FBN. It was founded in 2013 by leading Irish business families and operates as an all-island organisation. It is estimated that Irish family-run businesses contribute 80% of Ireland’s economic value.