Oireachtas Joint and Select Committees

Wednesday, 17 November 2021

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Impact of the Withdrawal of Covid-19 Measures on Business: Discussion

Mr. Declan Hughes:

I thank the Senator. Yesterday's announcement came very quickly on the back of advice and modelling from the National Public Health Emergency Team, NPHET, the previous day and discussions at Cabinet. One of the features of recent months has been that the hospitality sector has recovered to some extent and we have seen an increase in employment and consumer spending on overnight accommodation and in the hospitality sector. Credit is due to the sector for all the measures that were taken to implement Covid passes and check identification, etc. We have been very involved with the sector in that regard through the work of the Health and Safety Authority, HSA, and that work continues. However, I take the Senator's point about qualified staff. There have seen staff shortages. We are working with the sector through the work permit system, which is administered by the Department of Enterprise, Trade and Employment.

The supports and various measures which are available through the Department will continue. Once we get temporary framework clearance from the European Commission, it is our intention to extend those supports and make them available. There has been quite strong take-up from the accommodation and hospitality sectors. We know those supports are attractive to those sectors.

The most recent advice we have from Revenue is from 21 or 22 October. It has not yet updated its advice on the CRSS and we will wait and see what the outcome of that will be. It is clear that businesses must be considered significantly restricted from operating for the purposes of the CRSS from 22 October onwards. Yesterday's measures will have an impact on businesses and I am sure that is something Revenue will be considering.

While many businesses may have gained from the restart grant and come off the CRSS, others have yet to do that. They may want to engage directly with Revenue about their own particular circumstances. Revenue has supports available, including the EWSS, which is being extended to next year and will be available to businesses. Our colleagues in the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media are working directly with the representative bodies across the sector. Many of these venues provide outlets and employment opportunities, particularly for the live entertainment sector. The live entertainment sector and night-time economy may be particularly impacted by the new restrictions. The Minister, Deputy Catherine Martin, had €50 million for a range of schemes this year and will have an additional €25 million for next year. I understand that was announced in budget 2022. I am sure we will be working with our colleagues in that Department on the range of measures which might be needed or rolled out.

The key thing is to try to maintain the sector as open as possible through the coming weeks and months. That may require some flattening in terms of activity and capacity, etc. That is certainly some of the feedback we have been getting from operators in the business who have told us that bookings have reduced over the past week or two. Some of those have been deferred until January or February. What we faced earlier this year was a significant shock to the economy with 480,000 people availing of the PUP. That is not a situation to which we want to return. It is in all our interests to manage during the coming weeks by implementing the public health guidance, keeping businesses open in a safe way, and helping people to engage in the economy and to spend money. That will be our common purpose.

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