Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I thank the Deputy for the question and for his ongoing interest in issues affecting businesses and employees not just in Tipperary but across the country. Our strategy is threefold. First, it is to save as many businesses that are viable and as many jobs as we can during this period of pandemic and lockdown. There has already been €11 billion invested in the economy, propping up the economy through pandemic unemployment payments, the wage subsidy scheme, the commercial rates holiday and all the other financial supports for workers and businesses, which will remain in place until at least 30 June and will need to stay in place beyond 30 June, I think, for some businesses, particularly some of those the Deputy mentioned.

The second and most important part of the strategy, of course, is to beat the virus through testing, tracing, non-pharmaceutical interventions and vaccines to get the virus down to low levels, therefore allowing us to reopen the economy safely and in a sustainable way. Businesses that I talk to say to me that when they are told they can reopen next time, they want to know that it will be for good or at least for a prolonged period. That is why we want to get the numbers of sick people, the numbers of deaths and the numbers of cases down very low before we reopen again.

Third, once we do that - and that is the time to restimulate and reflate the economy, when the economy is reopening - one thing we will definitely have to do is to get people spending the savings that have built up. There is €12 billion, €13 billion or €14 billion in savings in the Irish banks at the moment that was not there a year ago, and we need to avoid the paradox of thrift and encourage people to spend and invest that money once they can. It is often the case that people are unable to spend at the moment because shops and businesses are closed. We need to make sure we encourage people to spend that money in our economy once it becomes possible for them to do so. Part of this is giving people the reassurance that while we will need to bring the deficit down, that will not involve cuts to pre-existing, pre-pandemic welfare payments or pensions, will not involve pay cuts, at least where we control pay levels, and will not involve increases in income tax. I think that will give people confidence to spend and invest when the economy is opened again.

There is also the national development plan, the €850 million from the EU, and the €1 billion from the Brexit adjustment reserve fund, all of which can be used to stimulate and reflate the economy, once it is able to reopen. That is the key to it, of course.

Finally, on aviation, €200 million has been already provided to the aviation sector under different headings, to airports and airlines. We are in further discussions with Aer Lingus regarding a package of financial support for that airline.

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