Concerns raised as Buncrana businesses facing closure

Businesses in Buncrana are under severe pressure due to escalating energy costs with several facing closure.

Continuous rising costs through 2022 have left several business owners in the town considering their future.

Some businesses have seen their energy costs more than treble over the last 12 months.

The Government introduced the Temporary Business Energy Support Scheme (TBESS) last year as part of the budget for 2023 and the first payments to more than 1,800 businesses registered with the scheme were made last month. The Temporary Business Energy Payment is equal to 40% of a business’ eligible costs, and is subject to a monthly cap.

But local councillor Jack Murray said the scheme does not go far enough and has called for emergency intervention from the Government. He said he is aware of several business owners in the town who are actively considering closure due to rising overheads.

“Serious concerns have been brought to me by small businesses in Buncrana - they are very concerned about their futures due to increased energy prices and this is of great concern because of the employment that small businesses generate.

“If a number of small businesses were to close in a town like Buncrana, it would have a huge negative impact on the community.”

The Sinn Féin councillor said there is a need for emergency intervention to get through “this current crisis”.

“There is a clear need for support and an emergency injection of funds to help keep these businesses alive and keep employment in our local community.”

Local businessman Paul Brogan, the owner of Food For Thought health food shop in the town and a founding member of Buncrana Chamber of Commerce, said businesses in the town need to come together to discuss the issues they are facing.

“They need to discuss the issues that are affecting individual businesses because every business is different.

“Some of them have big rates, some of them have big electricity prices, some may have too many staff and it is hard to let go of people who have been there a long time.”

Mr Brogan, who has run his Main Street business for 25 years, said business people need to get together, whether that is under the chamber or a new grouping, and “do something positive”.

“Something needs to be done or we are going to be a ghost town in years to come as retail is going to be hit.”