Dáil debates

Thursday, 11 June 2020

Covid-19 (Taoiseach): Statements

 

1:40 pm

Photo of Noel GrealishNoel Grealish (Galway West, Independent) | Oireachtas source

The tremendous sacrifice of the people in recent months has meant that we as a nation have made great progress in flattening the curve.

I pay tribute to the front-line staff who have done Trojan work over the past few months in dealing with the Covid-19 pandemic. They have put their lives at risk to care for the sick and get us where we are today. Unfortunately, some of them lost their lives and I offer my condolences to their families and the families of all those who have lost a loved one due to the coronavirus. I congratulate the Taoiseach, the Government and all who have played a part in flattening the curve in recent months.

Parents of children with severe or profound disabilities still have no certainty regarding a return to education for their children. These children, who thrive and progress in the school environment, have now been at home for 13 weeks. Distance learning is not an option and, unfortunately, many of them have regressed in terms of their education and behaviour since the lockdown began. Life has been extremely difficult for their parents during this time and they have advocated for the July provision to take place in a school-based setting. I am aware that the July education programme was debated with the Minister for Education and Skills, Deputy McHugh, in the Chamber yesterday. He stated that the issue would be discussed at the Cabinet meeting on Friday, following which he would give an update.

I am aware of schools in Galway that are ready to open for the scheme but have not received any communication from the Department of Education and Skills. Special needs schools are very different from mainstream schools. They operate with small numbers and staff with responsibility for the care and hygiene of the children already practise infection control protocols. In many ways, they are among the schools best placed and ready to reopen. Parents of these children need a firm commitment on a date on which schools will reopen. I ask that such a commitment be given after Friday's Cabinet meeting.

Businesses have just started to reopen and will need support for the weeks and months ahead. They need short-term and direct financial support, as well as long-term access to low-cost capital. When businesses closed their doors many of them, especially those in the tourism and hospitality sectors, lost their cash flow immediately. They were viable businesses that were trading successfully and it is critical that we get them up and running again. The small and medium enterprise sector employs almost 1 million people. The hospitality sector employs more than 260,000 people, including 27,000 in Galway alone. Tourism will be the last industry to recover, which puts thousands of jobs at risk. The Irish Independentreported today that foreign visitors to Ireland will fall by 10 million this year. If we assume that each of these tourists would have spent an average of €1,000, the loss to the economy, particularly the hospitality sector, amounts to €1 billion. Galway alone is down €200 million in lost revenue as a result of the cancellation of the Galway races, the Galway Arts Festival and all events associated with the European Capital of Culture 2020. I compliment the chief executive of Galway 2020 European Capital of Culture, Ms Patricia Philbin, and all her staff on the excellent work they have done in preparing for Galway 2020. It is unfortunate the event had to be cancelled.

The following measures should be considered to kick-start the SME and hospitality sectors. I ask for the suspension, as opposed to deferral, of all rates for a 12-month period, a zero VAT rate to overcome challenges in the short-term and help businesses get up and running more quickly, and a return to the 9% VAT rate for the hospitality sector up to the end of the 2022 season.

The National Asset Management Agency, NAMA, was established in 2009 to bail out the banks and ultimately save the Irish economy. Something similar needs to be done to keep businesses viable until a vaccine becomes widely available, businesses can operate at normal capacity and tourists can travel freely. Irish businesses and taxpayers bailed out the banks at a cost of more than €100 billion. It is now time for the SME and hospitality sectors to be supported to get our economy back on track. If these businesses cannot reopen due to cash flow problems, many thousands of people will be out of work in the long term. The timing of the lockdown in the middle of March coincided with the start of the tourism season for the hotel and tourism industry. As such, many of the regular summer staff were not on the payroll on 29 February and could not avail of the wage subsidy scheme. I ask that this matter be examined to see what support or grant scheme can be put in place to help seasonal businesses to rehire their staff.

Another major issue for the hospitality sector, one which was raised earlier, is the 2 m social distancing rule.

According to media reports, if this rule is left in place, 84,000 fewer jobs will be filled in the hospitality sector. It will have a devastating impact on many businesses which will be unable to open.

Earlier this week, I met with a number of local hoteliers from across Galway city and county who employ thousands of people. The 2 m social distancing rule was one of the biggest issues of concern. These businesses are now actively preparing for reopening and if the 2 m rule is going to change, a decision needs to be made quickly before money is spent renovating and preparing for 2 m social distancing. These businesses do not have the cash flow to change their premises around again if social distancing is reduced from 2 m to 1 m in a couple of weeks' time. I note that the Taoiseach takes advice from medical experts but I ask that he would consider reducing the social distancing rule from 2 m to 1 m, which is in line with the World Health Organization guidelines and is similar to what is being implemented in other European countries.

In summary, my questions to the Taoiseach are as follows. After Friday's Cabinet meeting, will a firm commitment be given on a reopening date for special schools so that they can operate the July provision programme in a school-based setting for children with severe and profound disabilities? Will commercial and VAT rates be suspended with a view to kick-starting our economy and getting businesses up and running again? Can a scheme similar to the wage subsidy scheme be introduced for seasonal workers in the hospitality sector to help retain their employment? Can the 2 m social distancing rule be reduced to 1 m, in line with the World Health Organization guidelines?

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