Sites 'ceasing production' as fuel protests threaten critical supply chains

Business lobby group Ibec has warned food, medicines and construction businesses are all reporting growing risks to production processes unless the protests are removed

National Fuel Protest in Cork on the N28. Picture: Larry Cummins

Ireland's largest business lobby group has called for an immediate de-escalation of fuel protests across the country, warning of "imminent threats" to supply chains unless they are removed. 

Ibec said the protests, now in their third day, is presenting "significant cost and operation disruption," which is already impacting on supply chains, while also presenting health and safety risks to workers. 

The group said members across critical business supply chains, such as food, medicines and construction, are all reporting growing risks to production processes in the next 48 hours unless the protests are removed from essential infrastructure such as ports, industrial zones and transport hubs, warning that some sites have already ceased production.

Defence forces are to be deployed on Thursday as fuel protests continue into their third day, with major demonstrations taking place in Cork, Dublin and motorways around the country in opposition to the rising price of fuel.

Deputy Garda Commissioner Shawna Coxon has also warned that protesters blocking fuel depots and other critical infrastructure are breaking the law, and that gardaí will begin enforcement if people do not disperse.

Deputy Commissioner, Operations Shawna Coxon, and Garda Press Officer Liam Geraghty speaking to the media regarding ongoing fuel protests around Dublin and the rest of the country, at Garda HQ, Dublin. Photo: Sam Boal/Collins Photos

Beyond the traffic disruption that has forced many organisations to alter work patterns to limit overall impact, Ibec said the protests have caused significant access issues for several large industrial areas. 

'Major risk' to health and safety

It added that restricting access to these facilities poses "a major risk to health and safety," particularly in emergencies where ease of entry is critical. 

Ibec noted that many employees have been unable to access their workplaces, with some employers reporting up to 50% forced absenteeism rates.

“The protests are now presenting material damage and costs to businesses across multiple sectors of the economy," said Ibec director of lobbying and influence, Fergal O'Brien.  

"Supply chains are being hit hard due to the port and other blockades, and high-value production processes in the food, pharma and construction sectors are all at imminent risk.

Hauliers Blockage White Pil Refinery. Picture Noel Sweeney

This will have immediate knock-on costs and disruption for the agriculture and construction sectors. It also couples with wider costs to the retail and hospitality sectors, and will lead to significant economic costs, which will ultimately undermine the Government’s ability to support those most impacted by the global energy crisis. 

"The protests are counterproductive and damaging to businesses and the economy, including our investment reputation."

Mr O'Brien said that Ibec "fully understands" the cost pressures resulting from the war in Iran, and is continuing to advocate for further ways to alleviate these pressures until costs have stabilised.