Written answers

Tuesday, 9 June 2020

Department of Transport, Tourism and Sport

Departmental Funding

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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535. To ask the Minister for Transport, Tourism and Sport if the introduction of a turnover-linked direct grant will be considered to assist with liquidity for the tourism and transport sector; and if he will make a statement on the matter. [9686/20]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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My Department has liaised with other Government departments and industry representative bodies, to align the economy wide COVID-19 supports and initiatives with transport, tourism and hospitality needs.

The measures put in place by the Government to support businesses initially focused on supporting those who have lost their jobs and in supporting businesses to remain viable during this difficult time with specifically targeted supports to assist companies to stay operational and retain their staff.

As a result, many transport and tourism businesses are now availing the various cross-sectoral economic supports that the Government has already put in place such as; the wage subsidy scheme, increased unemployment benefits, the state credit guarantee scheme, working capital loan schemes, enterprise support schemes and deferrals of tax liabilities, VAT, social contributions and local authority rates.

Government will continue to explore potential funding for all enterprises including transport and tourism businesses as they work through the challenges facing them, including through any mechanisms allowable through the EU’s state aid framework.

Minister Griffin and I have appointed a Tourism Recovery Taskforce to prepare a Tourism Recovery Plan which will include a set of recommendations on how best the Irish tourism sector can adapt and recover in the changed tourism environment as a result of the Covid-19 crisis. The plan will identify priority aims, key enablers and market opportunities for the sector for the period 2020-2023.

It is envisaged that the Taskforce will establish working groups to carry out specific tasks and that the Taskforce will undertake a widespread stakeholder consultation process whereby all sectors and interested parties will have an opportunity to provide constructive inputs and innovative ideas on how this vital sector to our economy can adapt and recover in a meaningful and sustainable way. The Taskforce will report back later this year.

As regards public transport, the Government has been clear that continued operation of the public transport sector is important and designated public transport as an “essential service” during the Covid-19 emergency, recognising the importance of keeping the system running especially for carrying essential workers and other passengers making necessary journeys throughout the crisis period.

Public transport has served, and will continue to serve, a vital role in transporting essential workers and in supporting the Government’s Roadmap in the weeks and months ahead.

While the majority of public transport in Ireland is provided by the publicly-subvented bus and rail services funded through National Transport Authority's (NTA) public service obligation (PSO) programme, the public transport system also includes non-subvented bus services provided on a commercial basis by bus and coach businesses of varying size. I understand that about 90% of the commercial bus operators have suspended their services or are providing significantly reduced services at present.

I understand the very difficult business environment that the commercial bus operators are now dealing with. Indeed, across Government we are acutely aware that the Covid-19 situation presents huge challenges for many business sectors. That is why the Government worked to introduce supports for impacted businesses.

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