Matt Shanahan (Waterford, Independent) | Oireachtas source

I will be sharing my time with Deputy Verona Murphy. In the past ten days, three economic reports were released by the Department of Finance, the Economic and Social Research Institute, ESRI, and the employers' group IBEC. They examined the financial resilience of Irish small and medium-sized enterprises, SMEs, the revenue lost since the onset of Covid-19 and the future revenue trajectory into 2021, depending on the broader economic environment.

The findings were stark. Almost half of firms made lockdown losses. Some two fifths of micro-firms and half of medium-sized firms face revenue shortfalls. Only 58% of hotels and restaurants were reported to be in profit. The total shortfall for the SME sector during the pandemic is estimated at between €6 billion and €10 billion. Firms with cash have largely used those reserves to bridge the funding gap.

The report highlighted several key concerns. Modified national demand, a measure which strips out the multinational sector, fell by 16% in the second quarter of this year. This reflects a two-speed economy as the multinational sector is performing well, with overall GDP falling by just 6%. Household savings are growing, standing at between €5 billion and €6 billion. On the other hand, numbers on the live register, the Covid-19 pandemic unemployment payment and the temporary Covid-19 wage subsidy scheme remain high. Some 800,000 people were receiving support as of last week. The state of public finances, a rising national debt, concerns about the corporation tax take, higher debt refinancing costs and Brexit all add to our woes. The unemployed are disproportionately younger workers from the hardest-hit sectors, that is, retail, hospitality, tourism and the arts.

This evening I downloaded the Department of Business, Enterprise and Innovation's tracker to see what money has been disbursed. The restart grant accounts for €298 million; the Covid-19 working capital scheme accounts for €106 million; microfinance loans come to a total of €18.8 million; local enterprise offices account for €43 million; Enterprise Ireland and IDA Ireland account for €34.5 million; and InterTradeIreland accounts for €1.3 million. This comes to a grand total of €501 million over the Covid-19 period, which has been disbursed to mitigate losses of been €6 billion and €10 billion in the SME sector.

We need corrections to give confidence to those working in the private sector. The employment wage subsidy scheme may have to be reintroduced and extended. The present scheme is not working for businesses that are cash-poor or have low turnover.

Insurance reform has been mentioned. It is amazing that we are here yet again. A book of quantum was produced by the Irish SME Association, ISME, over a weekend but we cannot seem to put one together in two years.

We need something to be done in respect of rent supports and pressure to be brought to bear on landlords and banks to share the burden. Upward-only rents are still a major problem, while banks are not sharing the burden borne by indebted businesses.

Promises were made to bring in an examinership-lite process. It is badly needed, given where businesses are at. When will it be delivered?

A tax strategy for the regions is needed in order to encourage decanting from major towns to more affordable living, a more balanced way of life and a more balanced economy. I have a sense of déjà vu. I spoke to the Minister in advance of the July stimulus and raised most of these issues, but they are still on the list and not much is being done about them. There is a need for more creative tax incentives and supports for business to remodel and reimagine their business models in light of Covid and Brexit.

Another matter I asked be addressed is the issue of bringing about formal interaction between the Government and the SME community on pay bargaining. A seat should be made available on the Labour Employer Economic Forum. Surely it is now time for the SME sector to properly recognised with regard to pay bargaining. The Irish people and the SME sector are resourceful but we need listening and proactive Departments of Finance and Business, Enterprise and Innovation.

As other Members have stated, many industries are badly suffering, including the tourism, leisure, transport, motor and aviation sectors, the gig economy, wet pubs and hotels. They are looking for something but they have not seen it in the measures announced to date. I hope the October budget will have something for them. The SME sector, which employs more than 800,000 workers, needs additional help. The questions those businesses are asking of the Government are "If not us, who?" and "If not now, when?".

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