Dáil debates
Wednesday, 8 July 2020
Microenterprise Loan Fund (Amendment) Bill 2020: Second Stage (Resumed)
11:10 am
Chris Andrews (Dublin Bay South, Sinn Fein) | Oireachtas source
I congratulate the Minister and wish him well in his new role. It is a great honour and responsibility. Trying to get the balance right between saving lives and opening up the economy is going to be difficult and challenging, and we have to strike that balance.
Microenterprises and SMEs have experienced shocks that are putting their very existence in doubt. I heard John Moran on "Morning Ireland" last week or the week before say that €6.5 billion of funding for SMEs was announced, but only €100 million was drawn down. As my colleague, Deputy O'Reilly, said yesterday, many of these supports are inaccessible. Businesses have contacted me about the restart grant, which has been mentioned a number of times this morning and was mentioned in yesterday's debate. In many cases, they were approved for these grants weeks ago but have still not heard anything. This will soon become known as the Government of announcements because it makes announcement after announcement with very little delivery on these announcements. This will undermine the July stimulus plan and the announcement made on that.
I will give an example of an announcement on which there has been no delivery. In early May, the then Minister announced a rates waiver for certain businesses, which would allow them to claim back the rates they had claimed over the same period last year. Unfortunately, SMEs have heard nothing more to date. I have been contacted by a number of small business owners who are all in the same boat. They all have a serious shortage of cash flow and anyone who has been involved in business will know that cash is crucial to any small business.
They need this rates waiver. They need the breathing space. However, the council has not processed the waiver. It does not know the criteria and is waiting on the Department to provide instruction. The problem for small businesses is that they are still waiting. For two months, SMEs have been waiting. For two months, the council has been waiting to hear from the Government. Without this support and other supports, the businesses in question may have to close. The margin is that fine. They are balancing on a knife edge and they need everything that they can get.
Last week, I asked the Tánaiste the following questions:
Can he say why, two months on, the Government has not informed Dublin City Council of the three-month rates waiver for SMEs? Why has the largest council [Dublin City Council] ... not been updated on a scheme announced two months ago? Will he confirm that there will be no rowing back on the waiver scheme and that SMEs will receive it?
Last week, in response to those questions, the Tánaiste stated:
We informed the world that rates were being waived for companies that had to close for that three-month period. We ... have to consider extending that waiver. I do not know why Dublin City Council has not been formally informed but I will check that out.
They are still waiting. They still have not heard anything. The SMEs have not heard anything. The local authorities have not heard anything. That was a week ago. I have been in touch with the chief executive of Dublin City Council and he has informed me that the introduction of the rates waiver is awaiting decision by the Department on the details of the scheme. Despite intensive pressure from the local authority sector, no circular has been issued with details of that scheme. It seems that those in this Government and that which preceded it have been making announcements and then sitting on their hands. What is happening in the Department that the Tánaiste does not know that the rates waiver has not been delivered two months after it was announced?
As already stated, the Tánaiste indicated last week that he announced to the world the rates waiver scheme. However, the Department has done nothing to make sure that it is delivered. This delay in deciding on the scheme is unhelpful to both SMEs and local authorities. The local authorities need to know the criteria for the waiver. They need to know who is eligible and who is not. They need to know because they themselves need to budget. I ask that the Tánaiste and the Minister of State ensure that the local authorities are notified of the criteria for the rates waiver scheme and that it is issued as a matter of urgency. Otherwise, the Government will become known as the Government for announcements.
No comments