Written answers

Wednesday, 3 June 2020

Department of Finance

Small and Medium Enterprises

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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87. To ask the Minister for Finance if financial supports will be made available to SMEs in the range of financial supports provided to the banking sector during the financial crash of 2008; and if he will make a statement on the matter. [8981/20]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Covid-19 has brought unprecedented challenges for all of us in society. The Government recognises the importance of the SME sector that accounts for over 99 percent of businesses and nearly 70 per cent of employment in the Irish economy. That is why a key focus of Government has been to improve the supports provided for businesses since the start of this crisis.  These supports are kept under review and we will continue to offer support as SMEs work through the challenges facing them. 

The supports provided to businesses are reflected in our expectation that there will be a general government deficit this year in the range of €23 to €30 billion, as I informed the House on 20 May. Our level of public debt will increase significantly, temporarily reversing the downward trend in our debt-to-GDP ratio.

As I have said previously, this is entirely appropriate, and is in line with the experience of our European colleagues, but it is essential that Ireland’s budgetary position does not become an outlier in the future. Increasing borrowing is possible because of the careful management of the public finances in recent years, and the next Government must be mindful of the reality of the budgetary situation in future years.

These actions have enabled Government to introduce a series of measures and supports to help businesses including the Temporary Wage Subsidy Scheme (TWSS) and the proposed ‘warehousing’ of certain COVID-19 related tax debts which are two significant measures introduced to support businesses immediate cash flow challenges.

Furthermore, together with my colleagues the Minister for Business, Enterprise and Innovation, Ms Heather Humphreys and the Minister for Agriculture, Food and Marine, Mr Michael Creed, Government announced a package of measures aimed at supporting businesses and farmers of varying sizes and with varying needs including the provision of grants and loans, in relation to, working capital, longer-term finance and business advisory supports. A comprehensive list of these measures can be found at:

I can assure the Deputy that I continue to work with my colleagues across Government to examine further appropriate supports to assist businesses impacted by Covid-19.

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