Dáil debates

Wednesday, 6 May 2020

Covid-19 (Tourism): Statements

 

3:15 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail) | Oireachtas source

I know that talking about economic issues in the context of 1,339 people who have lost their lives can be cruel for people, particularly the families involved, but we also have to focus on getting people back to work. Tourism, as the Minister of State said, has taken the biggest hit. I have a couple of questions for him.

This is a general question to all Ministers. The Minister, Deputy Humphreys, suggested there will be flexibility for businesses to open more quickly. Who measures the flexibility? Will there be a central mechanism for organisations and industries - we have heard from the vintners and the hairdressers - that think they can come up with social distancing measures more quickly? To whom do they talk, and how will they be measured?

There is huge confusion about the schemes announced at the weekend. It is not a €10,000 grant; it is a cap of €10,000, and it is linked entirely to the rates paid in 2019. That differs fundamentally from other schemes such as that in the North, where for tourism and hospitality the figure is up to £25,000. That is more reflective of the amount of money that will be needed for hotels with big properties to try to get up and running, perhaps at much less capacity than normal and without bar income, based on current plans.

On working capital, as the Minister of State said, some businesses may not open until at least 2021 or possibly 2022. The current proposals look at six-month interest-free and payment-free issues. That will not work for tourism when income may not run until 2021 or 2022. What flexibility is there for tourism and hospitality specific products within the schemes announced at the weekend? The reduction of the VAT rate to zero has to happen, but unless we get working capital in, most businesses will not have the capacity to open. It is important, therefore, that we get clarification on that issue first.

Commercial rent still has not been adequately dealt with by the Government. Many landlords are still demanding rent. The Minister of State mentioned that insurance companies are not paying out on business interruption. This is an interruption beyond anyone's control, including that of the tourism industry. We need much more force from the Government in taking on the insurance companies, as well as in taking on the banks which are administering all the schemes that have been announced with a very heavy hand, not realising what they are doing to small businesses, particularly in tourism and hospitality, in order to get them back up and running.

What is the capacity for 2021? Many tourism interests made investment this year in coaches, for instance, or extensions. They need to be given a break to protect the industry for reopening on the international markets in 2020 or 2021. Our local tourism promotion co-operatives need support. They have done huge work. Their membership will not be in a position to support themselves. Our regional airports need support. They are essential to getting the tourism industry back up and running for incoming visitors. They need to be protected during 2020.

Finally, regarding the coláistí Gaeilge, the closure of coláistí samhraidh right across the country will have a massive impact on domestic tourism. What role does the Department have, with the Minister of State, Senator Kyne, and others, in addressing that?

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