Cork Chamber, the voice of business in Cork has welcomed government’s expansion of the Temporary Business Energy Support Scheme (TBESS) and extension of the 9% VAT rate for hospitality as part of the cost-of-living package.
Commenting on the changes to the TBESS, Conor Healy Cork Chamber CEO said, “This is a very necessary move by government and will allow a greater number of businesses to benefit from the scheme. The reduction of the threshold for qualification from a 50% increase in electricity or gas costs to 30% increase will allow for greater accessibility to the scheme. The fact that claimants will be eligible for increased relief from 40% to 50% of eligible costs, coupled with the increase in the monthly limit to €15,000 will help TBESS to deliver a more meaningful impact for those most affected by the soaring energy costs. The introduction of a new grant for LPG or kerosene is also welcome as it broadens the reach of the energy supports for business.”
Cork Chamber had recently discussed the slower than expected take-up rates of the Temporary Business Energy Support Scheme with Minister for Enterprise, Trade and Employment Simon Coveney TD, and had conducted research among their business community to gain a deeper understanding of the issues posing as a deterrent to applications.
Mr Healy continued: “The introduction of the TBESS back in late November was broadly welcomed by the business community, but feedback from our members indicated that the scheme needed revision and refinement. From our survey of members in early February, 72% had not accessed TBESS, and of those, it was only 30% who hadn’t qualified, which tells us that there are other factors impeding use of the scheme. The research pointed to the main deterrents being lack of awareness and the complexity of the application process. Considering all this, the revision of the qualifying criteria and extension of the scheme by a further 3 months is very welcome.”
Referencing the extension of the 9% VAT rate for hospitality businesses Mr Healy noted, “It is positive that government have extended the 9% VAT rate for hospitality businesses through to September 2023. Our hospitality industry, which is so highly valuable to our economy and communities needs certainty and I would urge government that earlier announcements would allow for greater certainty and planning by those business most in need, many of them are contributing to the very fabric of our towns, villages and cities.”
