Written answers

Tuesday, 6 October 2020

Department of Trade, Enterprise and Employment

Small and Medium Enterprises

Photo of Francis Noel DuffyFrancis Noel Duffy (Dublin South West, Green Party)
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164. To ask the Minister for Trade, Enterprise and Employment the measures being considered to support SMEs facing difficulties with commercial rents and arrears due to significantly reduced turnovers; and if he will make a statement on the matter. [28725/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Government introduced the July Stimulus €7bn 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. Full details on all COVID-19 supports for business are available at:

The July Stimulus Package is a substantial financial package to stimulate our economy worth more than €5 billion, with an additional €2 billion in loan guarantees which is bigger in scale than most budgets and is being deployed at speed. The July Stimulus package was designed to help businesses to open, to help those already open to stay open, to get staff back to work and for those who cannot go back to their old jobs, there are new opportunities.

The range of measures in place to assist businesses include direct grants to support viable businesses and jobs, including new hire. We have extended the wage subsidy scheme, which will run until the end of March 2021 and will be open to firms that do not currently participate and open to workers like seasonal workers who were not previously included, and we are giving companies extra assistance through an enhanced Restart Plus grant of up to €25,000. From 1 September, the six-month reduction in the VAT came into effect, going down from 23% to 21%.

We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the new €2bn Credit Guarantee Scheme. I announced the reopening of MFI lending on 3August and I launched the €2bn Credit Guarantee Scheme on 7 September.

SMEs may also be eligible for the Government's new Restart Grant Plus Scheme where they operate from a rateable premises. Grants of between €4,000 up to a maximum of €25,000 are available. Those businesses that accessed funding through the previous round of the scheme are eligible to apply for a second top-up payment to a total combined value of the revised maximum grant level.

On 1st October I published a new voluntary Code of Conduct that has been agreed between landlords and business representatives for commercial renters.

The Code, which is a commitment in the Programme for Government, has been developed in consultation with all relevant stakeholders, including IBEC, Retail Excellence Ireland, Chambers Ireland and Irish Institutional Property (IIP), who manage approximately €14bn of Irish property. It is based on an approach taken in other jurisdictions, including Australia, France and the UK.

The Code, which will apply until 31 July 2021, sets out a structured approach for engagement between both commercial landlords and tenants, based on their mutual interest in continuing to work together.

The Code sets out a number of principles that both parties should commit to abide by, including transparency and collaboration. The Code asks commercial landlords to provide concessions where they can and where this is not possible, asks them to set out clearly the reasons for this. It lists some of the issues to consider when determining the impact of COVID-19 and the public health restrictions on a business and the need for concession. Where a concession is being considered, the Code provides some suggested options for new arrangements. The Code also suggests that commercial tenants seeking new arrangements should be clear as to why assistance is needed when seeking concessions from their landlord.

I am working with my colleagues across Government to assist businesses impacted by COVID-19 and I will continue to keep the supports provided for enterprise under review with the goal of setting our country towards economic recovery.

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