Oireachtas Joint and Select Committees

Tuesday, 30 June 2020

Special Committee on Covid-19 Response

Impact of Covid-19: SME Recovery

Ms Jean McCabe:

Across my industry, retailers have been very compliant in putting measures in place to ensure that customers and employees feel safe. It is important to hear that about that business. Without the wage subsidy scheme, all of that cleaning and all the protocol around ensuring we are giving a safe environment for people to shop would not be possible. Businesses are currently trading between 30% and 50% down. They are not making money or making anything while their doors are open right now. While we are delighted to get our doors open, without the support and the wage subsidy scheme, those businesses would not be open at the moment. Once the doors are back open, that is when the landlord comes knocking for the rent and suppliers start looking to get paid. Mr. Moran mentioned confidence. We deal with suppliers all over the world and at the moment we are in negotiations. We are paying all our suppliers, which we are lucky enough to be in a position to do. Some are providing discounts. The only country that has been consistently strong in not providing any discount, because they are exceptionally confident in what is happening in their own country, is Denmark. Out of all our suppliers, they will not budge while every other supplier is offering between 10% and 40% off invoices because they need the cash fast and are starting to panic in their own business. In Denmark they are holding strong and will not discount anything. If anything is to be said about what confidence means and how it can help us recover quicker, whatever measures come out in the July stimulus have to be robust and they have to look after the SME sector.