Dáil Éireann Debate, Tuesday - 9 July 2024
274. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 190 of 28 May 2024, the reason for the discrepancy between the total projects awarded; the average amount awarded; the amount drawn down as part of the Environmental Aid Programme 2020-2023; if businesses are failing to draw down awards; if so, the reasons for this; and if he will make a statement on the matter. [29408/24]
Amharc ar fhreagra275. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 190 of 28 May 2024, the reason for the discrepancy between the total projects awarded; the average amount awarded and the amount drawn down as part of the green for business scheme from 2021 to date; if businesses are failing to draw down awards, if so, the reason; and if he will make a statement on the matter. [29409/24]
Amharc ar fhreagra276. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 190 of 28 May 2024, the reason for the discrepancy between the total projects awarded; the average amount awarded; the amount drawn down as part of sustainable recovery scheme 2022-2023; if businesses are failing to draw down awards; if so, the reasons; and if he will make a statement on the matter. [29410/24]
Amharc ar fhreagra277. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 190 of 28 May 2024, the reason for the discrepancy between the total projects awarded; the average amount awarded; the amount drawn down as part of green transition fund 2022-2026; if businesses are failing to draw down awards; if so, the reasons for this; and if he will make a statement on the matter. [29411/24]
Amharc ar fhreagra278. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 190 of 28 May 2024, the reason for the discrepancy between the total projects awarded; the average amount awarded; the amount drawn down as part of the energy efficiency grant 2023 to date; if businesses are failing to draw down awards; if so, the reasons for this; and if he will make a statement on the matter. [29412/24]
Amharc ar fhreagraI propose to take Questions Nos. 274 to 278, inclusive, together.
My Department, along with the enterprise agencies, Enterprise Ireland, IDA Ireland, and the Local Enterprise Offices, promote and support the funding of decarbonisation technologies and energy efficiency initiatives across the enterprise base.
Under State Aid rules, the Government can only provide financial assistance to a company if it will encourage it to undertake activity that it would not have done in the absence of Government support. When a company is approved grant aid from an enterprise agency, they are issued with a letter of offer which is a contract between the enterprise agency and the approved grant recipient. The contract outlines an agreed time horizon between the two parties, milestones, targets and a final claim date.
As approved companies are at the very beginning of their journey, there will always be a time lag between the date of grant approval and the date of payment. Exchequer funds cannot be disbursed to companies until the awarding body can verify that the expenses being claimed are for activities that have been agreed in the original letter of offer, or the contract itself.
Inspections are carried out to identify links between expenditure incurred and the eligible expenditure listed in the letter of offer. As a result of this process, the amount disbursed will often differ to the original amount awarded. There is also a natural drop-off rate for grant approved projects due to, for example, changing priorities within the company. The average amounts awarded in my previous correspondence with the Deputy were calculated based upon the number of grants awarded and the total outlay of approved applications per scheme.
The Energy Efficiency Grant (EEG) was launched by the Local Enterprise Offices a year ago. I recently announced that the maximum amount available under the Grant was increasing from €5,000 to €10,000, and that the business contribution rate was reducing from 50% to 25%.
Prior to approval however, businesses are required to complete an energy audit (Green for Business, Greenstart or an SEAI energy audit). An increased number of businesses have now completed an audit, and the Grant is being actively promoted by the Local Enterprise Offices. My Department therefore expects to see an increase in demand for the Grant.
