Written answers

Tuesday, 16 June 2020

Department of Jobs, Enterprise and Innovation

Covid-19 Pandemic Supports

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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447. To ask the Minister for Jobs, Enterprise and Innovation the number of businesses that have drawn down funds under schemes (details supplied); the steps she has taken to ensure companies here are aware of other schemes available from the EU; and if she will make a statement on the matter. [11345/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Deputy will be aware that the EU Commission has developed a Temporary Framework for State aid measures to allow member states certain flexibilities to put in place short term, targeted responses to the impact of COVID-19 on their economies. Ireland’s Sustaining Enterprise Fund Scheme is available until the end of the year which is a timeframe set within the EU Commission’s Temporary Framework. The nature of the business supports under this framework is a matter for individual member states and is dependent upon the different size of economies and targeted sectors of the economies.

There is a limited amount of resources available and a broad range of businesses with different needs for support. I am looking to achieve the widest reach within the available Exchequer funding as urgently and as quickly as possible. The loan guarantee scheme structures, for example, are a key response to the liquidity crisis, as they allow Ireland to leverage Exchequer monies to provide much larger funds to businesses, in particular where it is feasible to access counter guarantees through the European Investment Bank. Supports to businesses, including grants, provided through the Exchequer funding should support viable business across all sectors and across the variety of needs.

The Sustaining Enterprise Fund is just one part of the wider €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

The €250m Restart Grant gives direct grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures. The grants are equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.

Full details on all of the COVID-19 supports for business, that are administered by the enterprise agencies and other bodies on behalf of my Department, are available at: .

Details of the uptake of these supports are updated every week on my Department’s website at  .

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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448. To ask the Minister for Jobs, Enterprise and Innovation the reason Ireland has had business schemes approved that take the form of repayable advances and has not sought grant aided schemes to date from the EU in view of the fact businesses are struggling. [11346/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Deputy will be aware that the EU's temporary state aid framework allows EU member states to put in place short term, targeted responses to the impact of COVID-19 on their economies. The nature of the business supports under this framework is a matter for individual member states and is dependent upon the different size of economies and targeted sectors of the economies.

The €180 million Sustaining Enterprise Fund which Ireland successfully negotiated with the EU Commission under the temporary framework, is just one part of the wider €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, restart grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

The nature of the business supports under the temporary framework is a matter for individual member states and is dependent upon the different size of economies and targeted sectors of the economies.

There is a limited amount of resources available and a broad range of businesses with different needs for support. I am looking to achieve the widest reach within the available Exchequer funding as urgently and as quickly as possible. The loan guarantee scheme structures, for example, are a key response to the liquidity crisis, as they allow Ireland to leverage Exchequer monies to provide much larger funds to businesses, in particular where it is feasible to access counter guarantees through the European Investment Bank. Supports to businesses, including grants, provided through the Exchequer funding should support viable business across all sectors and across the variety of needs.

My Department, working with its agencies, are continually reviewing the situation and I am informed that Enterprise Ireland is working with SMEs client companies to support the stabilisation of their business so that they can undertake a developmental programme focused on recovery and growth. To support companies the agency has:

- Developed and launched a suite of new funding supports utilising the additional flexibility permitted under the Sustaining Enterprise Fund.

- Set up a Business Response Hub to provide information to companies on what supports are available to assist with their specific needs. To date the agency has supported many companies through the Hub.

As a first step, SMEs need to stabilise their business with key elements including business planning and accessing liquidity. Once a company has a financial and business continuity plan, Enterprise Ireland can provide funding for companies who have been impacted by COVID- 19, either through a reduction in turnover/profit or a significant increase in costs. The purpose of this funding is to enable the company to stabilise and implement a business sustainment plan, leading to a return to viability and contributing to the recovery of the Irish economy. New supports introduced to support this include:

Planning Supports

- Lean Business Continuity Support: This €2.5k grant supports companies to access training or advisory services related to crisis management, sustaining operations, moving to e-business/online and planning for resilience post crisis. Reflecting the practical and immediate nature of this support, company interest and demand has been strong.

- COVID-19 Business Financial Planning Grant: This grant of up to €5k provides 100 per cent funding for companies to access a financial consultant to prepare a financial plan to assist companies:

- understand their immediate financial position, secure the finance required to survive and provide a framework to sustain the business; and

- ensure they have a framework to identify and manage costs and gaps in funding.

- This is a critical support for a company to strengthen their position to identify funding needs and access required funding to implement their business plan.

- Liquidity Support

- The agency’s liquidity and medium-term financial supports are being delivered under the Sustaining Enterprise Fund. Support of up to €800,000 can be provided to companies, with different levels of support and funding instruments available, which are targeted at companies at different stages of development and growth (e.g. established companies, start-ups and small enterprises).

- The agency is actively working with companies to prepare applications for funding under the Sustaining Enterprise Fund.

The €250m Restart Grant which is also an approved Scheme under the EU’s Temporary Framework for State aid, in fact gives direct non-repayable grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures. The grants are equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.

Indigenous Irish companies are the backbone of the economy and I can assure the Deputy that the officials in my Department are working with all our agencies to monitor the needs of sectors and companies and provide new supports to meet changing company needs, as required.

For further information and regular updates as they develop are available on the Department’s website at: .

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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449. To ask the Minister for Jobs, Enterprise and Innovation the steps she has taken to ensure businesses can access the proposed European Recovery and Resilience Facility which offers opportunities to Ireland with supports available of over €300 billion in grants and up to €250 billion in loans; and the preparations she has made to ensure that businesses can access funds and loans. [11347/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I can confirm to the Deputy that I, my Department and the wider Government will be diligently working with the European Commission to ensure Irish businesses will have access to the new Recovery and Resilience Facility. It will provide large-scale financial support to reforms and investments undertaken in every Member State including Ireland, with the aims of mitigating the economic and social impact of the coronavirus pandemic. The Facility also has the aim of making the EU economies more sustainable, resilient and better prepared for the challenges posed by the green and digital transitions. I will be working to ensure Ireland is at the forefront of these changes to the business environment.

The fund will assist Ireland in addressing the challenges identified in the European Semester, in areas such as competitiveness, productivity, environmental sustainability, education and skills, health, employment, and economic, social and territorial cohesion. It is important to note the focus on the green and digital transition agendas which will require considerable focus by the Government to assist Irish businesses, particularly SMEs. The Facility is focused on longer term reforms and will help Irish businesses to create and sustain their firms and their employees. It will be a mechanism for the businesses of the Member States of the European Union to strengthen their position in the global market.

The Facility will work in tandem with the range of Commission measures already developed in response to the current coronavirus pandemic such as amendment to the cohesion policy regulation, the Coronavirus Response Investment Initiatives and SURE. I will be working with my Government colleagues to make sure Ireland is best placed to take advantage of these considerable funds and Irish businesses will reap the reward of this engagement.

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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450. To ask the Minister for Jobs, Enterprise and Innovation the efforts that have been made to draw down and enable businesses to access the Next Generation EU fund of €750 billion; and if she will make a statement on the matter. [11348/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Next Generation EU fund is a new €750 billion recovery instrument that will be made available to member states in the form of loans and grants. This recovery instrument will be embedded into a longer-term EU budget. It is expected to take the rest of 2020 to put the recovery and resilience facility in place, as it will have to be agreed in the European Council, the revised Multiannual Financial Framework then adopted by the European Parliament and finally the whole package ratified by the national parliaments in line with their constitutional requirements.

Ireland will benefit directly from the Next Generation EU instrument with grants worth almost €2 billion. €1.209 billion will come from the new Recovery and Resilience Facility, which will offer financial support for investments and reforms, including in relation to the green and digital transitions and the resilience of national economies, linking these to the EU priorities.

At present, Next Generation EU is a proposal. However, once it is agreed I will take all appropriate steps to enable businesses to access funding.

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