Written answers

Wednesday, 15 July 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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48. To ask the Minister for Jobs, Enterprise and Innovation his plans to assist companies that have been closed for the past number of months by way of cash injection to meet their deferred debts and deferred payments; and if he will make a statement on the matter. [16146/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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As stated in the Programme for Government, we will bring forward a Jobs Stimulus this month to boost our economy and help restore employment. This July Stimulus will extend, enhance and add to the existing measures totalling €12 billion in supports for COVID-19 impacted businesses already announced.

The Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet. Grant payments available range from a minimum of €2,000 up to €10,000 available. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of COVID-19.

Using funding allocated by my Department to Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas. The Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme.

The Restart Grant is, however, just one part of a wider assistance package for business and 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.

Currently, any business (Sole Trader, Partnership or Limited Company) with less than 10 full time employees and annual turnover of up to €2m may apply to Microfinance Ireland for funding from €5,000 – €50,000 where the business is not in a position to avail of finance from Banks and other commercial lending providers. The loan incurs 0% interest for the first six months and Zero repayments. Thereafter a reduced interest rate of 4.5% APR applies to loans applied for through the Local Enterprise Office.

All COVID-19 Business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate, including adaptations to the phased opening of our economy.

In that regard, while the Restart Grant scheme has been broadly welcomed by business owners who benefited from it, I am aware of certain exclusions as the application and assessment processes have been rolled out.In line with an undertaking given in the Programme for Government, my Department is carrying out a general review of the Restart Grant. This will be completed shortly and form an important input to Government's considerations for the forthcoming July Stimulus package.

I can assure the Deputy that I will continue to work with my colleagues across Government and all stakeholders to examine how best to further assist businesses impacted by COVID-19.

Full details on all COVID-19 measures for business are available at: .

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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49. To ask the Minister for Jobs, Enterprise and Innovation if he will ensure there will be no delay in payments to SMEs such as the employee assistance scheme in order to ensure SMEs can continue to pay their staff on a regular basis; and if he will make a statement on the matter. [16147/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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On 5 June, the Temporary Wage Subsidy Scheme was extended by the then Minister for Finance and Public Expenditure and Reform to31 August 2020. Businesses re-opening, who were not previously registered for the scheme, can now apply to join the scheme, provided they meet the relevant eligibility criteria.

The Temporary Wage Subsidy Scheme will be available to employers who keep employees on the payroll throughout the COVID-19 pandemic, meaning employers can retain links with employees for when business picks up after the crisis. Additionally, the operation of the scheme will reduce the burden on the Department of Employment Affairs and Social Protection (DEASP) which is dealing with the other COVID-19 employee assistance related payments.

Detailed information in relation to operating the TWSS can be found on the Revenue website.

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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50. To ask the Minister for Jobs, Enterprise and Innovation his plans to continue the business continuity voucher, which has expired and was beneficial to SMEs; and if he will make a statement on the matter. [16148/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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In response to recognised business needs at that time, the Business Continuity Voucher (BCV) scheme was launched on 26th March last. The BCV Scheme provided up to €2,500 in consultancy costs, to develop short and long-term strategies to respond to the initial pandemic and to plan for the eventual recovery and reopening of the economy. The purpose of the scheme was to provide expert guidance and advice to SMEs employing up 50 people and enable business owners make informed decisions about what immediate measures and remedial actions could be taken at the outset of this crisis, to protect staff and sales and eventually help the business recover. The scheme was a resounding success in terms of uptake, the product of it being an appropriate support for that point in time.

As the reopening of the economy continues apace, more and more businesses are transitioning from the planning to the implementation phase. It is in this context that the BCV was phased out and superseded by the new €250m Restart Grant which was introduced to assist micro and small businesses with the costs associated with reopening and re-employing workers following COVID-19 closures.

The Restart Grant is available to businesses with a turnover of less than €5m employing up to 50 people, which were closed or impacted by at least a 25% projected reduction in turnover to the end of June 2020. The grants will be equivalent to the rates bill of the business in 2019, or a minimum grant of €2,000, with a maximum grant of €10,000.

In terms of business continuity planning, Enterprise Ireland's Lean Business Continuity Voucher is available to SMEs employing 10 or more in the manufacturing or internationally traded service sectors. This Voucher allows them to access up to €2,500 in training or advisory services support related to the continued operation of their businesses during the current pandemic.

The voucher allows companies to access external independent experts in areas such as:

- Business strategy, in light of the changing marketplace/supply chains and customer needs

- Physical changes to the layout of operations, where the need to maintain a safe distance can be challenging

- Process re-engineering, where health and safety requirements dictate changes to existing processes

My focus since I took up my new role has been on the July Stimulus Package which is aimed at supporting the viability of the business and enterprise sector and to get people back to work as quickly as possible in all sectors. The current supports are being reviewed as part of that.

In that regard, my Department has developed a range of proposals which I have brought to the Cabinet Committee on Economic Recovery and Investment for consideration. These proposals, along with others from Ministerial colleagues, will be developed and adjusted further for the Government’s consideration of an ambitious stimulus package which will be announced soon.

Importantly, the July stimulus we are developing will aim to assist business to reopen and to sustain employment and to strategically position our economy and firms to meet future challenges.

I look forward to announcing the details shortly.

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