Michael Collins (Cork South West, Independent) | Oireachtas source

I congratulate the Minister of State, Deputy Chambers, on his appointment and I wish him the best. The Rural Independent Group will not be opposing this Bill tonight.

There are many issues in respect of SMEs at present. I have spent a lot of time talking to people whose businesses are in serious financial difficulty. The Government is talking about giving low interest rates but providing low interest rates is kicking the can down the road for many of these businesses. I appeal to the Government to reconsider and think along the lines of some kind of grant aid to support these businesses because no matter how low interest rates are, they have to be paid back. Businesses are unable to contemplate that at this time. Cafes, restaurants and hairdressers need some kind of package. A stimulus package is to be announced next week. That will hopefully give them some kind of a way forward. A lot of these businesses feel they are running in some ways at a loss at the present time with more staff and fewer customers.

We spoke earlier today about the pub industry. A lot of these businesses are in dire straits. The VAT rate on drinks is at 23%. I sincerely hope that the Minister of State is considering a measure to bring that down to a percentage that might allow the publicans to survive. There are 50,000 jobs on the line. Many pubs had the intention of opening on Monday. They had to buy stock yesterday if they were to open on Monday. They were given the indication that they would be able to do so. They are now hanging on an announcement tomorrow morning and they cannot afford to take other losses. I appeal with the Minister to give some clarity tonight to that sector, which has been suffering and has been shown little or no roadmap towards its survival. In talking to many of those involved, even some who do not have mortgages and rents, they are worried about how they are going to keep the door open.

One can also look at the hotel sector and how they are able to keep the doors when they are open paying high rents or mortgages. A temporary wage subsidy scheme has to be looked for the hotel sector. A meeting including all the hotels in west Cork was held in recent weeks and that was one of the things on which they sought my support. I ask the Minister of State to give serious consideration to changing and rejigging the temporary wage subsidy scheme. While we are talking about that scheme, I have understanding, respect and sympathy - although sympathy sometimes does not pay the bills - for those who had mortgage approval and banks will not now accept their mortgages because they are on the temporary wage subsidy scheme. I ask the Minister to intercede with the banks on this issue. It is difficult enough for people trying to start out and make a living but as this is a measure the Government put in place due to the crisis, for the banks to use it as a way out is immoral and wrong. It needs to be put right.

Regarding the moratorium on mortgages, a lot of banks are considering adding to the mortgage as soon as people start the repayments. People are struggling at present and cannot afford that punishment. It is a tough word but that is what the banks are considering doing to their customers. It is wrong and it needs to be looked at. It is one thing to add it at the end of the mortgage but going back in a month's time and paying perhaps a quarter more than what they were paying initially is something that many people will not be able to sustain.

An announcement has been made in the UK on bringing the VAT rate in the tourism sector down to 5%. The increase in the rate from 9% to 13.5% was detrimental enough prior to Covid but it is now imperative that the Government move quickly. There is no point in giving the VAT decrease when the tourism season is over. That decrease should have been announced a number of weeks ago when businesses were trying to get up and running again.

Another issue that has caused concern for small businesses is rates. There is a freeze in that regard at the moment. Is there serious consideration to that freeze continuing at least some way into next year to give people a chance? I have been talking to taxi and bus operators. I spoke to a businessman in west Cork who has invested thousand and thousands of euro to open up a bus service to Cork and back. It is an incredible service and pre-Covid was going to be a massive, growing service. He has to take on Bus Éireann, which has the State behind it. Now he is at a massive financial loss and it is difficult for him to find a way forward. He is trying to continue the service but they are the people who need very serious grant aid in these times. This cannot be allowed to drag on with them not knowing the way forward.

We have had a lot of positive things in relation to health in this country but there are questions too. Money was spent on Covid-19 tests, which were sent to Germany. The then Taoiseach, Deputy Varadkar, said in answer to a question from me here that it cost around €200 a test. We knew in west Cork that they could do the test for €49. There was the purchase of a PC-12 aeroplane by the State at a massive cost. We do not hear on the floor of the Dáil who is paying, what it cost and why that money was spent. Why was the money not invested in local laboratories and spent in Ireland?

We have not even touched on the agricultural sector. Through this crisis, they have had little or no funding. There was a €15 million package. A very genuine farmer in west Cork and many others said to me they looked at the Irish Farmers' Journaland they threw it on the ground in anger because they could not get their hands on that type of funding. There is no point announcing a stimulus package next week if hurdles and fences are put in front of people.

A lot of people are not paying rates in business that also are struggling and they need to be looked at too. The fishing industry is furious with what has been given to them to date. I hope next week will address a lot of the issues for that industry.

See this speech in context