Food Drink Ireland (FDI), the Ibec group representing the food and drink sector, has urged the government to prolong energy support schemes for businesses in response to the ongoing pressures on cost competitiveness.
According to the group’s most recent quarterly business monitor, indigenous food and drink manufacturers are facing persistent difficulties due to long-term inflation in transportation, energy, and food sectors.
Additionally, FDI noted that the introduction of border controls in Britain, starting on October 31, will further worsen the challenges posed by high input costs for businesses in the sector.
“It is essential that Government help the sector offset high energy costs by extending the two energy support schemes (TBESS and UECS) to the end of 2023 and amending the qualification criteria so more companies can avail of the supports,” said Jonathan McDade, deputy director of Food Drink Ireland.
The group warned that long terms trends show significant increases in wages, transport costs and wholesale energy prices compared to three years ago.
“The food and drink sector continues to endure during challenging times and faces ongoing costs due to Brexit and more specifically the forthcoming introduction of border controls to our largest export market which is why FDI is calling for the extension of the Government’s two energy support schemes.”