Dáil debates

Wednesday, 24 June 2020

Post-European Council Meetings: Statements

 

1:45 pm

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

I have been listening to the debate. I had hoped the Taoiseach would be here. The last time I addressed him in the Chamber, I spoke of grant aid which the German Government is providing for small businesses. I mentioned a figure of €50 billion. He told me he had not heard that and asked that I send him the information and I have done so. I will quote the German finance minister when he announced this measure. He stated:

I want to make a crucial point: We are providing grants, not loans. Nothing has to be paid back [to us]. In this way, we’re taking action to reach the people who urgently need our support right now.

I had asked the Taoiseach whether the Government would look again at grant aid for small businesses, many of which are now in the process of making decisions on whether to reopen, as well as those that face a mounting wall of debt from utility bills, insurance and so on over the past few months. People are mow making decisions as to whether they will reopen. While some grant aid is available to businesses based on rates paid, for those who do not pay rates for many very legitimate reasons, there is no assistance.

That is very small fund compared, for example, with what some of our European counterparts are paying. This was my question for the Taoiseach. I hope he can respond in writing.

I have two further questions for the Minister of State. The European Council, after its meeting, referred to maximum flexibility in the application of the budget and state aid rules. What flexibility has the Government shown on state aid rules as far as some other companies are concerned? I asked the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Coveney, whether an analysis had been done on the flexibility we have shown on state aid, how that compares with other EU countries and whether any companies or businesses here are suffering as a result. Some of my colleagues spoke about IAG, Aer Lingus, etc. While I know there are issues in this regard, is there any possibility that the Government would consider providing state aid to Aer Lingus, similar to that which the German Government has provided to Lufthansa?

The proposed new recovery instrument, Next Generation EU, is worth €750 billion. When added to the multi-annual financial framework, we are looking at approximately €1.85 trillion. It is very clear, as the Commission has noted, that this will require increased own resources. What is the view of the Government on the issue of increasing own resources? The European Parliament has called for this for some years but there were always blockages within the European Council. I know this is an emergency but can I have a general indication as to what our Government’s view is on this issue?

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