Dáil debates

Thursday, 22 April 2021

Covid Restrictions Support Scheme Regulations and Employment Wage Subsidy Scheme Regulations: Motions

 

3:55 pm

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein) | Oireachtas source

I am thankful for the opportunity to speak to these important motions. There is no doubt that the extension of these schemes will give workers and businesses some certainty, although just for the coming weeks. I have spoken to people availing of these schemes, where they work, and they speak incredibly highly of them and are incredibly grateful for the assistance. We cannot lose sight of the fact that these are viable businesses that were closed for public health reasons. As soon as it is safe, they are anxious to get back to being the employers they were and making the contributions that they did. They want to be in a position to be able to bounce back.

The continuation of these schemes is essential and perhaps, as the Government speaks about easing the public health restrictions, greater clarity could be given to workers and businesses on how the schemes will operate as we move through the easing of public health restrictions and with increasing rates of vaccination. It would be remiss of me not to relay the problems that some businesses have raised for some time now.

The exclusion of many businesses from the CRSS is still significant. Since budget day, when the scheme was announced, many limitations within it have been highlighted and their effect has become more acute since businesses have tried to draw down funding. In the days following the 2021 budget, both I and my colleagues pointed out that the narrow nature of the scheme would mean suppliers, event management companies, taxi drivers, businesses without fixed premises and many others would simply fall through the cracks.

Before the finance committee, my colleague, Deputy Pearse Doherty, has highlighted problems with the schemes directly to the Minister. At a meeting of the Oireachtas Joint Committee on Enterprise, Trade and Employment last October, I called on the Tánaiste to expand the scheme to include businesses such as event management companies, the business event industry, artists, taxi drivers, suppliers and other businesses currently excluded. It took nearly six months for some of these difficulties to be addressed by the launch of the small business assistance scheme for Covid, SBASC, and I am thankful that scheme will offer some hope to businesses that they can continue to weather this storm. Unfortunately, that scheme, like the CRSS, does not address the exclusion of businesses without a fixed premises. As a result, a host of businesses will continue to go without supports. Sinn Féin still believes, in the interests of protecting as many businesses as possible, that the sensible action is to include all of those whose turnover fell by 75% or more.

The EWSS, along with the PUP, has helped workers significantly. A matter has arisen with workers in receipt of the EWSS, especially those in the aviation sector, who are due to lose their short-term work support payment because their entitlement is due to end under the current rules surrounding jobseeker's benefit. I ask the Minister to raise this with his colleague, the Minister for Social Protection, and seek that the rules surrounding jobseeker's benefit be extended beyond the current six and nine months, with the rules around requalification suspended so that workers can have access to this absolutely vital support. Such changes are badly needed by workers in the aviation sector, especially those in Aer Lingus, who are down 60%, 70% and, in some cases, 80% of their usual wages.

With regard to businesses and especially SMEs, I ask that the Minister and his Department look at the question of hidden debt to ensure it does not affect the ability of SMEs to bounce back to profitability. From speaking with owners of many SMEs and family businesses, I know there is a fear that hidden debt, such as warehoused tax debt and commercial rent arrears, will hinder the ability to bounce back to profitability when the current health crisis is over. Data provided by the Minister's office indicate that SMEs have warehoused more than €1 billion in tax liabilities under the debt warehousing scheme. This scheme is important for SMEs, microbusinesses and family businesses. It has improved the short-run cash flow for them but the Government must ensure there are some checks and balances in place so they are not hit with a tsunami of debt immediately after they try to reopen.

As we know, SMEs are the backbone of our economy, particularly with regard to employment. That they have warehoused more tax debt than any other sector should be of grave concern to the Minister. I encourage the Department, in conjunction with the Department of Enterprise, Trade and Employment, to examine this specific matter and assess the sort of structures that may need to be put in place so businesses can safely exit and bounce back. Many businesses have suggested solutions such as repayment of tax debt over an elongated period or reduced interest rates. I encourage both the Minister for Finance and the Tánaiste to begin these conversations immediately.

Commercial rent arrears are an extremely serious matter for businesses right across the State. The Government has published a code of conduct between landlords and tenants but some businesses have outlined that many commercial landlords are refusing to engage. There are sensitive constitutional questions to be gotten over, which we recognise, but I know that in some Nordic countries arbitration systems have been established to help address questions of commercial rents and rent debt. Looking at such systems may be a very good place to start as many of these firms are absolutely terrified of the debt that may await them. If we are to come out of this crisis and be resilient, we must ensure such hidden debt does not hinder SMEs.

Yesterday we saw yet another company announcing a closure, with 486 jobs gone in Carphone Warehouse. That is 486 people and their families getting some of the worst news at the worst possible time. Retail is facing an absolute crisis but we know the sector is the backbone of many of our towns, villages and cities. It is in crisis and the sector is crying out for some sort of certainty or help. The Mandate trade union has proposed a forum on the future of retail. I know that some people in the Government say, when asked, that retail and our habits are changing. That is true but our habits have changed out of necessity. With some encouragement, the Minister might be able to revitalise the retail sector and save hundreds of thousands of jobs. I urge him to consider seriously a forum on the future of retail to bring stakeholders together and really work hard to try to salvage jobs and the sector as a whole.

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