Ibec welcomes Finance Bill especially energy schemes to support many companies through the winter

October 20, 2022

Ibec, the group that represents Irish business, welcomes the Finance Bill published today, which gives effect to new energy support schemes and measures announced in Budget 2023. Ibec did note however that some elements of the Bill may need further work to ensure schemes meet their full potential.

Commenting Gerard Brady, Ibec Head of National Policy and Chief Economist, said: “Today’s bill gives effect to many elements announced in Budget 2023. In particular we welcome energy schemes which will provide support to many companies through the winter. However, technical changes may be necessary in order to ensure that anomalies, cliff edge effects and market distortions do not arise out of the package.”

“Care needs to be taken that the hard cap of €30,000 in energy supports per company is adjusted to take regard for threats to viability or reductions in activity or opening hours for businesses which might own multiple locations or sites. This could be done by allowing for additional support above the cap for companies which can show direct threats to their ongoing viability.”

“In addition, while changes to BIK on company cars from January 2023 was announced in Finance Bill 2019, it is our view that these changes should be delayed until the economic environment improves. Whilst the rationale for the changes was sound, the costs involved could run into multiple thousands in additional taxation for workers on even modest salaries. Feedback from Ibec members is that this is causing significant concern amongst their workforces given the financial pressures many are now facing. Implementing these changes for new cars only, subject to Ministerial Order, would both achieve maximum behavioural change in leasing arrangements whilst avoiding placing further significant burden on households.”