Dáil debates

Tuesday, 14 July 2020

Ceisteanna Eile - Other Questions

Small and Medium Enterprises

5:40 pm

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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24. To ask the Minister for Jobs, Enterprise and Innovation the further grant supports for small and medium enterprises being considered by his Department; and if he will make a statement on the matter. [15798/20]

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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In light of the passing last week of the Microenterprise Loan Fund (Amendment) Bill 2020, will the Tánaiste set out the Government's plan to provide further supports to small and medium enterprises countrywide to aid them in their recovery following the Covid-19 pandemic?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I thank the Deputy for his question and for his interest in advocating on behalf of small business in his constituency and elsewhere. To assist businesses to overcome the unique and unprecedented challenges posed by Covid-19, the Government has put in place a package for firms that includes the wage subsidy scheme, direct grants, low-cost loans, the write-off of commercial rates and deferred tax liabilities. These measures are designed to restore confidence and further assist businesses in terms of their management and business continuity, thus allowing them to begin planning for the weeks and months ahead.

My focus since I took up my role has been on the July stimulus package, which is aimed at protecting the viability of the business and enterprise sector and enabling people to get back to work as quickly as possible in all sectors. The stimulus will extend and enhance existing measures to address the impact of Covid-19 on businesses. I am engaging with my ministerial colleagues on a range of proposals. Helping SMEs is central to our efforts, given their pivotal role in the economy and employment. The July stimulus package to be announced next week will be of scale and speed.

In considering the analysis, I see five areas on which we should focus. These are income supports for workers, by way of extending the wage subsidy scheme; better direct grants for business; cheaper finance for business; new opportunities for future jobs; and targeted supports for the hardest-hit sectors. While I have emphasised the importance of preserving existing firms and jobs, the July package should also have an eye to exploiting emerging opportunities and attracting high-value projects with significant economic benefits. Importantly, the July stimulus must position our economy and firms to meet future challenges. In the near term, this includes helping companies further in meeting the challenges of Brexit, but we also need to include actions that will build enterprise resilience and help businesses to transition to the low-carbon and digital future. I look forward to announcing the details with the Taoiseach shortly.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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I thank the Tánaiste for his reply. There is a significant focus at the moment on the July stimulus package and a lot of SME owners are waiting very anxiously for it. Some sectors have been hit harder than others by the Covid-19 pandemic and they are particularly anxious to see what will be announced next week. Private bus operators, small retail outlets, boutique owners and many others have suffered greatly during this period. We are hugely dependent in this country on the SME sector and the July stimulus will be critical in rebooting our economy following the Covid-19 pandemic. Some 65% of workers in the State are employed in SMEs, which means that getting the vast majority of those businesses back on an even keel is absolutely essential. They are anxiously awaiting next week's announcement.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I very much agree with the Deputy about the importance of the SME sector. In all parts of Ireland, large numbers of people are employed in small firms. When we talk about SMEs, people might not appreciate that we are talking about firms with up to 500 employees. A company with that number of employees is quite a large firm but it is technically an SME. We know that the public sector has been largely protected through the pandemic. Very few people in the public service have lost their job, which is a good thing. Employees of large multinational companies have also largely been protected. The people who have borne the brunt of the pandemic are those working in small firms in the private sector. That is why we need to focus our efforts on them.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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The urban-rural divide in the sector is quite significant. Rural-based SMEs, although likely to employ fewer numbers than SMEs in urban areas, are nevertheless significant employers. We need to look to the future when considering the issues they face. Access to broadband, transport infrastructure, education facilities and further tax-based incentives will be essential in ensuring the future viability of the sector and enabling the future growth that will enable us to recover from this unique pandemic. As the Government prepares the July stimulus, there is very significant weight on the Tánaiste's shoulders in seeking to address the issues facing SMEs and enabling them to recover. Doing so is an essential part of rebooting our economy. I hope the stimulus package will answer the vast majority of our concerns.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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As I said, the July stimulus will be a package of scale. I expect it to include actions we can implement within weeks or months, not actions that cannot be done until next year or the year after, and to amount to several billions of euro in funding. It is important to say, however, that we are not going to fire all our bullets next week. We will do more in October as part of the budget and as part of the national economic plan. The proposals we publish next week will provide a multibillion euro package of measures that can be implemented quickly. It will include measures to help businesses that are closed to reopen and help those that have reopened but are struggling to stay open. Most important, it will maintain the connection between employers and employees so that we see more and more people going back to work over the next couple of weeks.