Dáil debates

Wednesday, 27 January 2021

Taxes Consolidation Act 1997 (Covid Restrictions Support Scheme) (Percentage Adjustment) Order 2021: Motion

 

3:10 pm

Photo of Noel GrealishNoel Grealish (Galway West, Independent) | Oireachtas source

The CRSS, which was announced by the Government in November, is designed as a targeted support for businesses that lost most of their trade as a result of the level 5 restrictions in order to ensure that they could remain viable and ready to reopen their doors when the restrictions are lifted. At the time, the Government estimated that the scheme would cost in the region of €18 million per week. Records that have been released show the scheme is costing considerably less than originally envisaged. One of the main reasons for this is the overly-restrictive conditions relating to qualification.

I ask that the scheme be reviewed with a view to supporting a much broader range of businesses that are directly affected by the level 5 restrictions and that have had their turnover collapse in the past year. Since last March, I have highlighted the decimation of the tourism and hospitality sectors. We also need to look, however, at those businesses supporting this sector, particularly the suppliers that were directly affected by the prolonged closures of their largest, and in some cases only, customers.

Since the scheme was announced, I have been contacted by many different types of businesses that are excluded from it. Mr. Gary Craven, for instance, is an independent trader based in Galway who has been supplying fish to hotels and restaurants exclusively for the past 30 years. His business has completely collapsed since last March. He does not qualify for CRSS simply because he delivers to his customers. He is still in the fixed business class this scheme was intended to cover but unlike the customers he supplies, he receives no Government support.

A large number of licensed trade distributors are based throughout the country. Their main trade is pubs, restaurants and hotels - the so-called on-trade business. These companies cannot compete in the off-licence trade due to the role of multiples and the delay in implementing the minimum unit pricing of alcohol element of the Public Health (Alcohol) Act 2018. Up to 90% of the customers of licensed trade distributors are not trading at the moment, which means they have lost to 80% or 90% of their turnover. Their licence does not allow them to sell to the public so despite not being told close their business, they are struggling to survive and their future is uncertain. In addition to not qualifying for the CRSS they do not qualify for any restart grants.

The condition under the scheme whereby restrictions must prohibit or reduce access by customers to a business premises is overly restrictive. It precludes a significant proportion of businesses that are suffering a massive loss of income and are now struggling to survive. At the time the CRSS was announced, the Minister said that specific sectoral schemes were to be rolled out to support many businesses that might not qualify for it. Unfortunately, many sectors are still not in receipt of any essential supports. We cannot support some sectors and leave others struggling to survive and facing closure.

In light of the lower than expected take-up of the CRSS and the difficulties being faced by many companies as a result of the level 5 restrictions, I recently sent the Minister a letter from J & C Kenny distributors, which was signed by Mr. Jackie Kenny and 15 other distributors from across the country who are affected by being excluded from the scheme. I ask that the terms of the scheme be expanded to include businesses such as J & C Kenny and the other distributors which signed the letter to which I refer and also Gary Craven and the many other small business owners who have been affected.

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