There is grave concern at the heart of government that the ongoing energy crisis now poses a real threat to Ireland's record full employment figures.

The figure of two-and-a-half million people in work has played a key role in driving Ireland's current fiscal surplus. However, unease is growing that there could be "cross contamination" between the ongoing extreme power price increases and Ireland's employment figures.

One minister warned: 'It is now recognised that the government needs to respond in an overwhelmingly impactful way to this threat.

"Economically we are facing into a winter of fear and the challenges are huge. We need a Covid-style onslaught to tackle the crisis."

Tánaiste Leo Varadkar also warned an intervention similar to the major Covid employment support schemes may yet be required.

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He said on Sunday: "In the pandemic we did a lot, intervened on a large scale and we are going to need to intervene again. One option is a Ggvernment-backed low-cost loan, similar to what we had for Covid and Brexit. The second is a grant scheme and we have Commission approval for this.

"This would be a grant for businesses that are manufacturing or exporting and have seen a dip in their profits or turnover as a result of high energy bills."

Speaking on RTÉ's This Week, the enterprise minister said there is a broader measure that the government is working on to help businesses in sectors such as retail, leisure and hospitality, but the details are not yet "firmed up".

Privately within government, unease is accelerating over the potential impact on jobs across the board from the energy crisis.

One minister warned: "Small businesses across the country are on the edge. They are saying, 'Why save us from COVID and let us go under because of inflation?' The anxiety is palpable."

Separately Mr Varadkar's Minister of State at Enterprise Dara Calleary told RTE there will be "a far bigger response" from the government during this winter than previous years in light of the current crisis. "It is required for families, homes, businesses, particularly small businesses," he sated.

Publicans' concerns

Publicans claim that four in ten Irish adults plan fewer visits to pubs for the remainder of 2022, due to cost of living pressures.

Vintners’ Federation of Ireland CEO Paul Clancy pointed to the Curren Goodden Associates cost of living consumer pulse survey, carried out across Ireland and the UK last month.

“The survey findings paint a bleak future for the pubs of Ireland, their staff and the communities where they often provide a vital social hub,” said Clancy, whose organisation represents 4,000 publicans.

“It is vital that finance minister Paschal Donohoe provides urgent and substantive energy supports to the pub trade in Budget 2023," Clancy added.

“Pubs cannot pass on increases to customers already under financial strain and colossal energy costs are going to force pubs to close, or reduce their winter opening times.”

Photo: Taoiseach Micheál Martin (right) with Leo Varadkar (centre) and Eamon Ryan