Seanad debates

Thursday, 8 October 2020

Nithe i dtosach suíonna - Commencement Matters

Covid-19 Pandemic

10:30 am

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank the Leas-Chathaoirleach and I thank both Senators Casey and Crowe for this Commencement debate.

I know that both Senators have considerable experience in the hospitality sector. I can leave them in no doubt that I am very acutely aware of the pressures that are faced by the hospitality sector. In my town of Mullingar, I have seen what staff and businesses have endured over the past six months due to the very uncertain path of this virus. It is very sad to see businesses which have made such an effort to make their premises safe for the public, and what they have had to go through as a result of a very quick decision which has impacted greatly upon them.

On 5 October, the Government decided that from midnight on Tuesday, 6 October, all counties would be placed on level 3 under the plan for living with Covid-19. The Government is acutely aware of the impact that the move to level 3 has for society generally and, in particular, for the tourism and hospitality businesses around the country. The current restrictions effectively require many tourism and hospitality businesses to close their doors for a second time this year. The nationwide move to level 3 is based on a review of the current public health advice and is in response to the deteriorating situation with the virus across the country.All counties will be at level 3 for a period of three weeks until midnight on 27 October, at which point the situation will be reviewed by the Government based on the status of the virus and the public health advice. In recognition of the impact of the level 3 restrictions, a 30% top-up to the restart plus grant will be provided to help support those affected through the three-week period. The restart plus grant is a contribution towards the cost of reopening or keeping a business operational and reconnecting with employees and customers. The grant can be used to defray ongoing fixed costs during closure, for example, utilities, insurance and refurbishment, or for measures to ensure employee and customer safety. In addition, in recognising that level 3 is being extended in Dublin and Donegal beyond their initial three-week period, businesses in these counties will be eligible for a further 20% and 10% top-up, respectively.

Prior to these most recent developments, the Government took a number of steps to help the tourism and hospitality sector. The July stimulus package introduced significant measures to help support businesses to recover following the devastating impacts of the Covid-19 crisis. Some of the key measures for tourism and hospitality include the stay and spend initiative, the €26 million adaptation grant, the €10 million grant for coach tourism and the revised restart grant, which now includes bed and breakfast accommodation. Tourism enterprises also benefit from wider horizontal supports, such as the employment wage support scheme, liquidity and enterprise investment measures, warehousing of tax liabilities and the extension for a further three months of the waiver of commercial rates. This is a key area for which the Department has responsibility and we sanctioned €600 million up to September. The case is being reviewed in the context of budgetary negotiations.

As part of its response to Covid-19, and to drive bookings for short breaks and holidays in Ireland in 2020, Fáilte Ireland has invested in a number of domestic holiday campaigns since June. The Minister, Deputy Catherine Martin, has seen first hand that these campaigns have been successful in getting Irish people to holiday at home.

All of these measures have helped the sector. The Minister appreciates, however, that severe challenges remain and we must continue to examine ways to ensure that businesses survive and recover. Earlier this week, she welcomed the publication of the tourism recovery plan by the tourism recovery task force. The task force makes a number of recommendations to help ensure the survival of tourism businesses and jobs and to help the sector to stabilise and recover in the years to come. Within this, it has identified a number of priority recommendations aimed at ensuring the survival of tourism businesses and jobs. The recovery plan will be hugely beneficial to the Minister and her colleagues in Government as we work towards the budget and the national economic plan.

I thank the Senators for their contributions. The Minister and I are under no illusions about the scale of the challenge and the many competing priorities facing the Government. However, she will be pushing hard for further support for the sector following on from the measures introduced as part of the July stimulus.

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