The Managing Director of Supermac’s, Pat McDonagh, has predicted that ten per cent of small businesses will be closed by the end of the year if the energy crisis is not dealt with by the Government in the upcoming budget.
“The energy crisis is a national emergency for business and will worsen as we go into the winter,” he said this week.
“This is going to impact everyone, not alone the business world but also in the domestic market. Energy is going to be one of our biggest challenges over the next 12 months,” he said. “We are in a crisis situation and in a crisis situation, decisions need to be made in the best interests of the country,” Mr McDonagh said.
He called for the windfarm in Derrybrien, Co. Galway, to be reopened immediately to address the energy challenge this winter. He said that there are enough windmills for to provide energy for 40,000 houses lying idle.
They are to be dismantled following more than two decades of controversy over the planning process for the site on the Slieve Aughty mountains.
“I think it is as a directive from the European Union, but we are in a crisis situation, and in a crisis situation sometimes decisions have to be made. It is green energy, there is nothing wrong with it, it can be turned on in the morning, and why not do that,” he urged.
Mr McDonagh, who is also the owner of six hotels under the Só Hotels umbrella, as well as seven motorway Plazas, said the business had experienced a 150% increase in energy costs this year .
He also predicted the increase would rise to 200% by Christmas.
“So where we were paying 14.9 cent a unit last December, that went in January to 38 cent per unit, then we went back to 26 cent per unit and now it has gone up to 38 cents again with the expectation level that it is going to go to close to 50 cents before Christmas,” he said.
“What I would be afraid of is anyone that is using a lot of electricity in their business, whether it is in the catering business or manufacturing, it is going to have a major impact,” he added.
Mr McDonagh also called for improvements to the planning process to speed up the rollout of solar energy projects.
“Improve the planning process so you can get planning through as a matter of urgency. Farmers have plenty of hay sheds and slatted sheds all over the country that can be used for solar power,” he suggested.
“Let’s get moving on it, let’s get grants available. This will pay back, more so now than ever, because of the price it is going to.”
