Matt Shanahan (Waterford, Independent) | Oireachtas source

I thank our witnesses. It is a bit like Groundhog Day, other than that, unfortunately, the business environment will probably get a lot more challenging for some sectors, especially smaller SMEs. Like Deputy Bruton and others, I welcome SCARP. Mr. McDonnell has outlined it very well. Many businesses will be carrying debt, particularly those that have availed of warehousing. It is interesting that local authorities were very fast off the mark in issuing rates bills to many companies that reopened in the past month. They had been opened only two weeks when the rates bills came flooding back in the door. There is a significant problem of indebtedness in the SME sector. I speak to many businesses that are finding their cost base has increased, including for energy, and their service charges have increased. Their turnover has dropped. They may be charging a bit more than they were, and people are seeing this with regard to walking in the door and the cost being paid over the counter, but unfortunately there is no profit in the business.

At present, many businesses are very dependent on the Government supports that are there. We will see a lot of real difficulty as they are unwound. Mr. Hughes outlined quite a lot of the supports that have been given. They have all been very welcome. A couple of things have been mentioned. With regard to the hospitality sector, is there any opportunity to make changes? There is no discrimination between somebody employed for a couple of months and somebody employed for three or four years with regard to access to the PUP. For staff retained by an employer for a number of years, the PUP is declining. They will probably look for other jobs. Those businesses will have no chance to retain them. Is there any hope we might be able to give some kind of the tail end on the PUP for longer-term employees who are furloughed at present? It is the same with the EWSS and those seeking supports.

With regard to the Government's planned capital spending, we have been speaking about retrofitting, solar and wind energy. We are doing almost nothing in the economy that I can see to try to create training or work placement for people. We are missing out quite a bit. I ask Mr. McDonnell to comment on what he thinks are the two or three key challenges for the SME sector. Foreign direct investment is doing well, as are manufacturing and construction. For everybody else in the SME sector, especially services, what does Mr. McDonnell believe are the key challenges, particularly with a reduced Christmas in light of potential reductions or imminent lockdowns?