Written answers

Wednesday, 15 July 2020

Department of Jobs, Enterprise and Innovation

Covid-19 Pandemic Supports

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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52. To ask the Minister for Jobs, Enterprise and Innovation the timeline for the appointment of the SME recovery task force; if relevant small and local business representative bodies will be consulted in the process; and if he will make a statement on the matter. [16216/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Programme for Government identifies a number of groups which will be led by Government in shaping the engagement of enterprise and SMEs in the formulation of the policy responses at the different stages of the recovery. These include an SME Growth Taskforce, a time limited body that will design a National SME Growth Plan mapping out an ambitious long-term strategic blueprint beyond COVID-19. This Plan will be brought to Government for approval as part of the National Economic Plan in October.

The work of the Taskforce will be informed by the comprehensive OECD Report on SME and Entrepreneurship Policy in Ireland which was finalised in October 2019. This provides a hugely informative, objective, and deeply-researched evidence base with which to guide the development of the SME Growth Plan.

I will announce the membership of the Taskforce in the coming weeks, which will contain representation from stakeholders with the capacity and expertise to progress work on thematic areas arising from the OECD’s recommendations and the challenges presented by the COVID-19 Pandemic. This will include participation from organisations representing small and local businesses.

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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53. To ask the Minister for Jobs, Enterprise and Innovation if the July stimulus package provides for the appointment of the SME task force; if the task force will include small and local business representatives; and if he will make a statement on the matter. [16217/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Programme for Government provides for measures to assist in the formulation of policy responses at different stages of the recovery. These include the formation of an SME Growth Taskforce, a time limited body that will design a National SME Growth Plan mapping out an ambitious long-term strategic blueprint beyond COVID-19. This Plan will be brought to Government for approval as part of the National Economic Plan in October.

The work of the Taskforce will be informed by the comprehensive OECD Report on SME and Entrepreneurship Policy in Ireland which was finalised in October 2019. This provides a hugely informative, objective, and deeply-researched evidence base with which to guide the development of the SME Growth Plan.

I will announce the membership of the Taskforce in the coming weeks, which will contain representation from stakeholders with the capacity and expertise to progress work on thematic areas arising from the OECD’s recommendations and the challenges presented by the COVID-19 Pandemic. This will include participation from organisations representing small and local businesses.

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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54. To ask the Minister for Jobs, Enterprise and Innovation the status of the July stimulus package; if relevant small and local business representative bodies will be consulted; and if he will make a statement on the matter. [16218/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Since I took up the role of Minister for Enterprise, Trade and Employment, my focus has been on preparing the July Stimulus Package which will be radical, of scale and far-reaching. Not only must we overcome the current challenges, but we must also look ahead and set our economy on the right course for the future.

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 shortly.

The July package will be followed in October by the National Economic Plan to be published on the same day as the Budget. The National Economic Plan will chart out our longer-term, jobs-led recovery.

I expect the Economic Plan will include a major reskilling programme, policies to promote balanced regional development and it will emphasise the importance of attracting and sustaining Foreign Direct Investment.

I understand the critical role SMEs must play in the national recovery and I welcome all suggestions and inputs such as from those bodies referred to by the Deputy. The Government listens carefully to all such suggestions and will consider them as we develop responses to the crisis and put our economy on the path to recovery. Indeed, I understand that my colleagues Minister English and Minister Troy have already engaged stakeholders in this regard and responses will influence the shape of the July Stimulus Package and the development of the National Economic Plan.

The new Government’s job over the coming weeks and months is to help businesses get back on track in every way we can. I have every confidence that a radical and far-reaching July Stimulus Package will help to set our businesses and our economy on the right course for the future.

On Friday last, I jointly chaired with Minister for Finance, Paschal Donohoe TD, the first meeting of the new SME and State Bodies Group focusing on the July Stimulus Package.

The SME and State Bodies Group, which was set up under a commitment in the Programme for Government, includes the main national business organisations representing SMEs and a wide range of State bodies that are responsible for designing and distributing business supports. The meeting was also attended by Minister of State Damien English TD and Minister of State Robert Troy TD.

The meeting provided a valuable opportunity to discuss the possible supports and interventions that Government can provide that could have a beneficial impact on small and medium businesses as our economy reopens.

Additionally, a new SME Growth Taskforce will be formed with representation from a wide range of business representative bodies and enterprise agencies. I will announce the membership of the SME Growth Taskforce in the coming weeks, and it will be a time limited body with its work concluding in advance of the National Economic Plan.

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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55. To ask the Minister for Jobs, Enterprise and Innovation the measures he plans to introduce as part of the July stimulus package; and if he will make a statement on the matter. [16219/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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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 shortly.

It would be inappropriate to set out now the details of the proposals but I can assure the Deputy that the Government will not be found wanting. Not only must we overcome the current challenges, but we must also look ahead.

Already there are some welcome signs of improvement in business activity and the economy. However, sectors that employ a lot of people, such as tourism and hospitality, arts and entertainment and other services that rely on social interaction, continue to be in serious difficulty and their recovery prospects are highly uncertain. While it may not be possible to keep every firm and job alive, I believe our emphasis should still be to protect jobs insofar as we can.

I see five areas which we should focus on in helping our enterprises in the future:

1. Continued support for employment through an extended wage subsidy scheme

2. Direct grants for businesses

3. Cheaper finance

4. New opportunities for future jobs

5. Support for the hardest hit sectors

The July Stimulus needs to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. Our current Restart Grant is a help but I recognise it has limitations which are preventing it from having a deeper and wider impact.

While I have emphasised the importance of preserving existing firms and jobs, the July package should also have an eye to exploiting emerging opportunities and attract high value projects with significant economic benefits. Importantly, the July Initiative must position our economy and firms to meet future challenges. In the near-term, this includes helping companies further in overcoming the challenges of Brexit but we also need to include measures that build enterprise resilience and help them transition to a low carbon future.

I look forward to the announcement of details shortly.

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