Martin Browne (Tipperary, Sinn Fein) | Oireachtas source

The Bill falls short of what many businesses in Tipperary have told me they need. A key requirement for the businesses to which I have spoken is for a stimulus package that would not get them into further debt. Non-debt funding is also needed for the many leisure centres throughout the county, particularly in Thurles and Roscrea, which contribute to the community's physical and mental health and which face financial challenge because of the cost of having to close and the expected reduced footfall.

The Bill falls short of what is needed. We have done the sums and found the overall package equates to a ratio between debt and grants of 4:1. This ratio favours the financial institutions more than it does the businesses. The Government has given many businesses little choice but to continue to struggle along because they cannot afford to access finance that is only available through further debt. Sinn Féin told the Minister that grant assistance was a vital resource for many of the businesses but he chose not to heed our call. A grant package of €1.7 billion was what we called for, which would be in line with Germany and elsewhere, but the Government decided that businesses must get themselves more indebted. This will make some of them even more vulnerable to failure when faced with the challenges coming down the road.

A grant package was something the tourism industry in particular appealed for, given that many in the sector cannot avail of the restart grant. While it was extended to other sectors and the rates available were increased, it was not made available to those who could not qualify in the first round because of their turnover rates in the past. It is also likely the grant scheme will run out before many of the businesses that want to avail of it will be able to do so.

I also want to talk about debt warehousing. The Bill provides for the warehousing of PAYE and VAT debts for businesses severely impacted by Covid-19, which have experienced a significant drop in turnover and have been unable to pay their liabilities in part or in full. While there are businesses that will definitely make use of this, there is one particular provision that may prove counterproductive for some. It is the provision whereby no interest will be charged on the tax debts for the initial restricted trading period of 12 months. Thereafter, a 3% per annum interest rate will apply. This is likely to be problematic for businesses that may not have got back up on their feet at that stage but nonetheless will be faced with an increase in their repayments. Can this not be rethought, given that the impact on some businesses is more severe than on others? We must think of those who, because of the restrictions and guidelines, will be the last to open and may have incurred greater liabilities in that time.

Let us talk about the poor version of Sinn Féin's staycation voucher, the stay and spend initiative. We proposed a proper and more equitable voucher system but the Minister opted for the measure that excludes the least well-off, such as the unemployed, those without taxable employment and carers. Before the Minister seeks to refute this, he should allow me to quote from the briefing document, which states that to benefit from the scheme an individual will need to have an income tax or USC liability against which the tax credit can be set. This excludes many people, particularly those who have the least and are most in need of a break and who more than likely were particularly affected by the lockdown. It is also useless for many others.

While a reduction in VAT is a welcome initiative, what was needed by the domestic sector was a reduction from 13.5% to 9%. The Minister should not claim the stay and spend initiative will make up for this because it will not, given that it is time limited until the end of April next year. Surely a more prolonged period of support is needed for the hotel and hospitality sector. While the measures in the Bill constitute a litany of missed opportunities, the Minister did not miss the opportunity to start with those in need of State supports through the pandemic unemployment payment. People are already experiencing a cut in their payments and further cuts are on the way.

I raise the challenges confronting our musicians and those involved in the arts and entertainment industries. They have told me that what they need at this stage is a survival package and not the stimulus package. A survey by the Music and Entertainment Association of Ireland found that 31.6% of respondents had their pandemic unemployment payment reduced and are now struggling to get by. They need the payment to be restored in full. Many are behind in utility bills and in danger of losing their vans and cars and are experiencing considerable financial stress. Some are in danger of losing their home. What does the Bill do for them? What will the Minister do for them?

The Government needs a few words of advice. Instead of fleecing financial victims of the crisis at the airport while at the same time awarding Ministers handsomely, it should understand it is supposed to work for the people out there and act accordingly. It has missed yet another opportunity to make things better.

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