Dáil debates

Thursday, 22 April 2021

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

 

3:55 pm

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I have written to the Aire a number of times on an anomaly in the CRSS and I have raised it in this Chamber. What I will say today is not something new but something of which he will be very much aware. My colleague, Deputy O'Reilly, mentioned it as well. Under the current scheme businesses without a fixed premises are not able to qualify. The Minister indicates the scheme is targeted rather than prescriptive but only those businesses with fixed premises that can show reduced footfall as a result of the restrictions will qualify. We know there are a great many businesses that cannot qualify for the CRSS as a result.

When it was introduced, we saw these anomalies and my colleague, Deputy Pearse Doherty, even tabled an amendment in January that would have changed the qualifying criteria for the scheme. Unfortunately, the Government rejected it. It seems, nevertheless, that some of the criticism has been taken on board with the launch of the new Covid-19 business aid scheme, which allows the likes of wholesalers, suppliers and caterers to be included. That should be welcomed, although unfortunately the new scheme does not address the exclusion of businesses without a fixed premises. It is an anomaly that needs to be rectified.

In the interests of protecting as many businesses as possible, it would be sensible to include all businesses that have seen turnover fall by 75% or more in this scheme. It would have been a simpler and more inclusive scheme that would acknowledge the businesses out there that are continuing to struggle with non-payroll expenses and fixed costs. Their future viability is in doubt. We saw in the recent stability programme update that the Government would have no role in supporting businesses that are no longer viable. The problem is there are large numbers of businesses that have been excluded from these schemes that are viable. I raised with the Minister before some of the businesses in my county of Galway, including Killary Fjord Boat Tours and a bus tour company on the islands. They have historically been successful.

When matters return to normal they will probably rediscover that success, but they are under great pressure at present due to the lack of support because they do not have a fixed premises. Their businesses are threatened as a result. It should be remembered that these businesses are embedded in the community. They are very important for these rural areas and form part of the commercial ecosystem.

It might be easy to take the view that the exclusion of these businesses is only a minor matter, but it can have significant unintended consequences. Consider the example of the boat tours. As the economy begins to reopen and the tourism industry begins to see increased activity, these must be viable in order to attract people to the area so they will go to the shops and restaurants. While the Minister has saved money in the short term by excluding these businesses, it will more than likely end up costing him far more in the long term because of potential tax and business activity forgone. The CRSS has cost less than was projected so I urge the Minister to reconsider this, to allow these businesses to be eligible for it and to help them. It will help not only the businesses but also the communities.

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