Pa Daly (Kerry, Sinn Fein) | Oireachtas source

I would like to express my gratitude to Deputies Pearse Doherty and O'Reilly for their speeches and for their work on these issues. I support the amendment proposed by Deputy O'Reilly. Although the Bill is somewhat welcome for the expansion it will bring in the credit available to small enterprises, it remains only a smaller part of the wider picture for businesses in these difficult times. It has limitations for a number of reasons which have been raised with me by constituents in Kerry over recent weeks and months. I have heard from people in bed and breakfast establishments, family-run restaurants, hotels, and tourism-related transportation businesses across the county who are desperate for assistance to reopen their businesses. The concerns centre on three main areas. First is the fact that what is being offered is in fact a loan that must at some point be paid back. The Bill may be intended to offer an outlet for those businesses that cannot pass some of the credit risk checks of traditional lenders, but we must acknowledge that businesses are leveraging all available sources of credit and cash. A loan under the terms of this Act is unlikely to be their first source of debt as a result of the crisis. In many cases owing to the size of these businesses and the fact that many will be small traders, these are likely to be debts personally guaranteed by the business owners and operators. Many business owners in Kerry in particular have expressed anxiety and hesitancy about applying for the credit available as a result.

Second, the requirements to access Covid business supports in many cases have had the effect of excluding the seasonal businesses. Established areas particularly in south and west Kerry which rely on tourism such as Annascaul, Dingle, Waterville and Killarney are feeling the brunt of the pandemic, with some being forced to remain closed for 2020 because they cannot afford to open. Others are effectively excluded from the wage subsidy scheme owing to the seasonal nature of their businesses, where workers were to commence work at the exact time or shortly after the restrictions began. More effective and flexible conditions for these businesses in terms of other supports may help them to avoid having to turn to loans such as the one the Bill provides.

Third is the uncertainty surrounding the present crisis and its duration. This year, 2020, is less than half a season for many tourism operators. Revenue will be down by up to 80% for many I have spoken to, and the outlook, unfortunately, for 2021 is increasingly uncertain. Although we have seen welcome calls for Irish people to holiday at home this year, Sinn Féin's proposal for a €200 voucher to be spent on hospitality would do much to assist those wishing so to do. There will continue to be losses for businesses on the island and particularly in Kerry, the county most negatively affected by the pandemic. As we know, the total tourism loss to the county will be up to €400 million. It affects thousands of jobs, particularly for seasonal workers. Applying for loans from Microfinance Ireland requires a projection of cash flow for the next 12 months, a daunting task for anyone at the present time and doubly so for those in the tourism and hospitality sector. Accordingly, we must consider the Bill within this context and not shy away from going as far as we can in supporting small businesses. Merely expanding the amount of credit available, as the existing Bill provides, does not go far enough. As a result, I will be supporting Deputy O'Reilly's amendment which should be supported by all Members of this House who wish to provide some form of relief to the sector.

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