Cormac Devlin (Dún Laoghaire, Fianna Fail)
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76. To ask the Minister for Jobs, Enterprise and Innovation if the aviation and car rental sectors will be included in the Covid-19 industrial review; and if he will make a statement on the matter. [22163/20]

Leo Varadkar (Dublin West, Fine Gael)
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As the Deputy will know, the aviation and car rental sectors referred to in the question are under the remit of other Ministers. However, my Department maintains an overview of key sectors of the economy to understand sectorial challenges and to facilitate a cohesive strategic approach to economic development.

In this context, my Department has developed a series of sectorial reports, Irish Economic Sectorial Reports 2020, which I brought to Cabinet for information in early August. These reports provide an overview of 16 key sectors and identify initial impacts of the pandemic on sectors as well as ongoing challenges and, in some cases, opportunities facing sectors. Published versions of the 16 sectorial reports, Focus on Sectors 2020, were launched by my colleagues Minister Harris and Minister English on 22 August.

While many of the sectors covered in these reports fall within the remit of my Department and its agencies, broader sectorial development responsibility spans a range of other Government Departments and the sectorial reports are developed in conjunction with those Departments. They also reflect inputs from industry representative organisations.

Of the sectors covered in the reports, Aerospace & Aviation and Tourism & Hospitality are amongst the most heavily affected sectors, severely impacted by the almost complete shutdown of international air travel and the social distancing measures required to contain the virus. Recovery in these sectors is uncertain and dependent on the evolution of the virus and ongoing travel restrictions.

As an island economy built largely on international trade and foreign direct investment, the recovery of the aviation sector is crucial for wider economy recovery. The latest CSO figures from June 2020 show arrivals and departures decreased by 97. 8% and 97.3% respectively by comparison to June 2019. According to a recent forecast across the airline sector IATA do not anticipate global capacity returning to 2019 levels before the 2023/24-time frame. Enterprises across the aviation value chain, with the sole exception of dedicated cargo operators, have seen severe depletion of business and organisations are facing various degrees of financial challenge.

The Taskforce for Aviation Recovery, established on 10 June 2020 by the then Minister for Transport, Tourism and Sport has set out a series of recommendations on how to support Irish aviation, some of which have already been implemented in the recently announced July Stimulus.

I also understand the fundamental role that the car rental industry plays in supporting overseas tourism and providing the opportunity for high spending tourists to visit all parts of the country, particularly the less accessible rural areas. This accessibility is crucial to local economies and jobs. I recognise that the public health requirements have had a very severe impact on international tourism and consequently, the car rental market. Officials in my Department have examined recent submissions from the car rental sector. Supports announced in the July Stimulus will have a wide reach across the economy, and address many of the needs of the sector outlined in the correspondence.

Importantly, the stimulus package gives certainty and employment supports to business, including through the Employment Wage Subsidy Scheme which will run to April 2021; gives a clear timeline for the continuation of the Pandemic Unemployment Payment which will help to provide assurances to those who suffered job losses as a result of COVID-19; enhances the Restart Grant to assist even more businesses as they resume activity; and increases the attractiveness of liquidity supports such as the Credit Guarantee Scheme and Micro Finance Ireland Loans. The business supports introduced to date have been cognisant of the challenges and needs across sectors, as will be any additional and future actions.

The trajectory of COVID-19 remains unpredictable and the full extent of the impact of the pandemic on global and national economies continues to unfold. We will continue to support enterprises through the crisis and lay the groundwork for economic recovery as part of a whole of government effort which will require ongoing communication with enterprise.

The next steps in our recovery will be mapped out in the October Budget and the subsequent National Economic Plan. The National Economic Plan will endeavour to set out a vision for what our post-COVID economy will look like and the actions that Government can take to support enterprises through this transition.