Written answers

Tuesday, 3 November 2020

Department of Finance

Covid-19 Pandemic Supports

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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379. To ask the Minister for Finance if the six-month moratorium on business loans which has now expired will be extended in view of the stricter Covid-19 restrictions. [32299/20]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The payment breaks coordinated by the Banking and Payments Federation of Ireland (BPFI) and introduced by its Members last March was a welcome initiative that allowed important and necessary cash flow relief to be quickly and efficiently provided to borrowers affected by Covid-19, including SMEs. As the Deputy is aware, the original 3 month payment break was extended by another 3 months for borrowers that requested it.

As these expire, many borrowers are returning to repayment but many other borrowers continue to be impacted by the economic consequences of Covid-19, and they may not be in a position to resume their loan repayment commitments when their payment break ends. I am fully aware of the stress and uncertainty that these borrowers are still facing, and they will continue to need assistance and support from their lenders. This point was made very clear to the CEOs of the country’s retail banks, and to the BPFI, by the Tánaiste, the Minister for Public Expenditure and Reform and myself when we met them at the end of September. It was also indicated that it is particularly vital that lenders work with their customers to ensure that suitable arrangements are put in place to assist their customers who are still experiencing difficulty. These arrangement could include additional flexibility, and this could be short term such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements. Each individual’s position is different and that’s why a case-by-case approach is now the best approach as some sectors of the economy are more impacted than others.

The Central Bank expects all lenders to develop strategies and operational capability to continue to support borrowers who cannot return to full capital and interest repayments after the end of the payment break. This will include offering forbearance as required and restructuring of loans in the event of long-term affordability issues.

With regard to loans to SMEs, regulated financial service providers are required to comply with the Central Bank (Supervision and Enforcement Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015, which are generally referred to as the SME Regulations. These set out the required treatment of SMEs by regulated entities in relation to various aspects of business lending. This includes detailed provisions around the credit application process, requirements regarding security or collateral, credit refusals and withdrawals, handling complaints, managing arrears and having in place policies for engaging with SMEs in financial difficulty.

The SME Regulations also specify that borrowers must be informed about a regulated entity’s internal appeal process in respect of a decision on whether to grant an alternative arrangement. The SME Regulations also state that borrowers with participating lenders should be informed of the Credit Review Office where the participating lender’s decision in relation to alternative arrangements are subject to review by the Credit Review Office. The Credit Review Office () was established to assist those SMEs and farm borrowers that have had credit applications of up to €3 million refused or have an existing credit facility withdrawn or amended by the participating bank or in relation to alternative arrangements for borrowers in difficulty. SMEs can apply to Credit Review after exhausting the internal appeals process in the relevant participating institution, which are currently AIB, BOI, Ulster Bank and Permanent TSB.

I would urge borrowers facing difficulties due to COVID-19 to contact their lenders as soon as possible to make alternative arrangements that will assist them to come through this difficult period.

Photo of Duncan SmithDuncan Smith (Dublin Fingal, Labour)
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380. To ask the Minister for Finance the reason Irish travel agents licensed by the Commission for Aviation Regulation are excluded from qualifying for the CRSS in view of the fact they have been trading in excess of 80% down since March 2020 and are likely to be a minimum 80% down until travel restarts; and if he will make a statement on the matter. [32318/20]

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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390. To ask the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [33489/20]

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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391. To ask the Minister for Finance his views on a matter (details supplied) regarding CRSS and coach tourism and private bus operators; and if he will make a statement on the matter. [33491/20]

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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392. To ask the Minister for Finance if he will include private coach tourism operators in the Covid-19 restrictions support scheme in view of the fact that their businesses are currently closed due to Covid-19 restrictions; and if he will make a statement on the matter. [33730/20]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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394. To ask the Minister for Finance if he will make the CRSS scheme available to private bus operators; if he has had discussions with the Department of Enterprise, Trade and Employment in relation to same; and if he will make a statement on the matter. [33768/20]

Photo of Steven MatthewsSteven Matthews (Wicklow, Green Party)
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395. To ask the Minister for Finance if consideration has been given with regard to including the coach tourism and private bus sector in the CRSS scheme to reflect their inability to operate in level 5 restrictions. [33882/20]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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406. To ask the Minister for Finance the way in which specialists SMEs in the live entertainment and events sector, including audio and lighting suppliers, staging companies, specialist event health and safety consultants, specialist security companies, fencing, sanitation, site services, power suppliers, marketing companies and other critical suppliers gain access to critical supports from his Department, that is, the CRSS, if they do not have public-facing companies; and if he will make a statement on the matter. [32542/20]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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408. To ask the Minister for Finance if a person (details supplied) qualified for assistance under the CRSS scheme; and if he will make a statement on the matter. [32558/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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428. To ask the Minister for Finance if viable coach and tourism businesses can access the CRSS scheme to keep workers employed and bring them back to work when the Covid-19 restrictions are lifted; and if he will make a statement on the matter. [33143/20]

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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432. To ask the Minister for Finance his views on the CRSS for a company (details supplied) in County Kerry; and if he will make a statement on the matter. [33197/20]

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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433. To ask the Minister for Finance the reason for excluding private coach operators from the Covid restrictions support scheme; and if he will make a statement on the matter. [33214/20]

Photo of Martin BrowneMartin Browne (Tipperary, Sinn Fein)
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445. To ask the Minister for Finance if bus companies will be included in the Covid support scheme to ensure the viability of the sector. [33704/20]

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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447. To ask the Minister for Finance if he will address a matter (details supplied) regarding the CRSS scheme; and if he will make a statement on the matter. [33741/20]

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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449. To ask the Minister for Finance if he will address a matter in relation to the Covid restriction support scheme (details supplied); and if he will make a statement on the matter. [33776/20]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 380, 390 to 392, inclusive, 394, 395, 406, 408, 428, 432, 433, 445, 447 and 449 together.

The details of the Covid Restrictions Support Scheme (CRSS) are set out in the Finance Bill 2020 and guidelines on the operation of the scheme are available on the Revenue website

(). The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic.

The support will be available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.

Where, as a result of the restrictions, a company or a self-employed individual is either forced to temporarily close their business, or their business is required to operate at significantly reduced levels, they will qualify for support under the scheme. Certain other conditions will apply, including that the person has a tax clearance certificate.

Qualifying businesses will be able to make a claim to Revenue under the CRSS for a cash payment, which will be known as an “Advance Credit for Trading Expenses” (“ACTE”). The ACTE will provide an immediate cash support to businesses. The amount of the ACTE will be based on an amount equal to 10% of the average weekly turnover of the business in 2019 (or in the case of new businesses, the average weekly turnover in 2020) up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000. This valuable upfront cash payment will enable eligible businesses to meet costs associated with their business premises, such as rent, insurance and utilities, at a time when, because of the specific terms of the restrictions announced by the Government, they cannot, for a period of time, provide goods or services to their customers or can only do so to a limited extent.

All eligible businesses can claim the support irrespective of their turnover levels, but the amount of the ACTE cannot exceed the lower of the amount based on 10%/5% of the relevant weekly turnover or €5,000 per week.

Where businesses ordinarily operate from a business premises (generally a building) located in a region for which restrictions are in operation, they may qualify under the scheme provided they meet the eligibility criteria, including the requirement that customers are either prohibited, or significantly restricted, from accessing their business premises to purchase goods or services due to the specific terms of the Covid restrictions announced by Government.

Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as a musician who does not perform from a fixed business premises or a coach or bus operator whose business is ordinarily operated from mobile vehicles, that business will not meet the eligibility criteria. A business that does ordinarily operate from a music or entertainment venue (for example, a company that operates a theatre) or a business in the tourism sector carrying on a trade consisting of, for example, the operation of a gallery or other cultural attraction, located in a region subject to restrictions, and who meets the eligibility criteria, will however be able to claim support under CRSS.

The scheme will not apply to a business in the events industry or in other sectors, which does not ordinarily operate from a fixed business premises located in a region subject to the restrictions, but rather supplies goods or services to a business that does qualify for support under CRSS because, under the Covid restrictions, that other business is required to temporarily close or significantly reduce its activity. Each business must satisfy the eligibility criteria in their own right.

It is not sufficient that the trade of a business, such as a travel agency, has been impacted because of a reduction in customer demand as a consequence of Covid-19, or that the business supplies goods or services to another business that qualifies for the support because, under the Covid restrictions, that other business is required to temporarily close, or significantly reduce, its activity. However, where customers of such a business are prohibited or significantly restricted from accessing the business premises in which the business is ordinarily carried on, as may be the case with travel agents under level 5 of the Plan for Living with Covid-19, the business may qualify for the CRSS.

Companies and self-employed workers who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including the range of measures announced as part of Budget 2021 to support live entertainment in 2021, and existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.

Businesses may also be able to benefit from the Live Performance Support Scheme details of which are available at . Coach operators may also be able to benefit from the Coach Tourism Business Continuity Scheme.

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