Written answers

Tuesday, 10 November 2020

Department of Trade, Enterprise and Employment

Covid-19 Pandemic Supports

Photo of Mick BarryMick Barry (Cork North Central, Solidarity)
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91. To ask the Minister for Trade, Enterprise and Employment the measures in place to ensure that companies availing of Covid-19 subsidies and schemes are using the funds to protect the income and rights of their employees; and if he will make a statement on the matter. [35071/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The level of support now being provided to businesses to remain viable and sustain employment across all sectors is unprecedented. I am satisfied that we have an appropriate mix of supports in place to support workers and businesses in moving to Level 5, in particular, so businesses can reopen and restore employment as we suppress the virus.

Under Enterprise Ireland's Sustaining Enterprise Fund, for example, all funding is subject to the submission of a sustaining enterprise plan including targets for sustaining and growing employment.

The Pandemic Unemployment Payment includes an increase in the top rate to €350 for those who were earning in excess of €400 per week. The Employment Wage Subsidy Scheme is also being aligned with this amendment, with the top payment increasing to €350 for those earning over €400.

The Covid Restrictions Support Scheme (CRSS), available through Revenue offers assistance to businesses forced to close or trade at significantly reduced levels due to COVID - 19 of up to €5,000 per week.

We are also providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the new €2bn Credit Guarantee Scheme.

There is a six-month reduction in VAT, down from 23% to 21%, and reduction in the 13.5% rate to 9%, together with a range of additional public capital investment measures to support the domestic economy.

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
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93. To ask the Minister for Trade, Enterprise and Employment the provisions which will be made available to ensure pubs, restaurants and nightclubs will be able to survive in the likely scenario that they will not be able to open over the Christmas period. [35130/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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We know the move to Level 5 has a significant impact on businesses, particularly in the hospitality sector. In order to reduce transmission of this disease quickly we have made this decision now so we can return to a lower level of the Living with Covid-19 framework.

As part of the Restart Grant and Restart Grant Plus schemes, several top-up payments were approved by Government to deal with additional financial pressures caused by necessary Covid-19 restrictions. These included a top-up for ‘wet’ pubs, top-ups for Level 3 restrictions and most recently a top-up of 30% for all eligible businesses nationally in recognition of Level 5. Businesses in the hospitality sector and other vulnerable sectors who previously benefited from the Restart Grant were eligible to re-apply for these top-ups.

The Restart Grant Plus Scheme closed to new application on 31st Oct and a new Covid Restrictions Support Scheme (CRSS), operated by the Revenue Commission, was introduced in Budget 2021 from 13th October. It offers a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels due to COVID of up to €5,000 per week.

Budget 2021 provides a significant package of tax and fiscal measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors.

As a result of the fact that businesses had to close, we have made changes to the PUP and the EWSS. The new payment structure for the PUP includes increase in the top rate to €350 for those who were earning in excess of €400 per week. The EWSS is also amended to align with the PUP amendment, with the top payment increasing to €350 for those earning over €400.

We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the new €2bn Credit Guarantee Scheme.

Amendments to Planning and Development Regulations temporarily allow restaurants to operate as takeaways - food may be ordered for collection or delivery for consumption off-premises - without being required to obtain change of use planning permission to operate as takeaways. Bord Bia's 'Navigating Change' COVID-19 Response programme also offers a suite of supports for food, drink and horticulture businesses affected by COVID-19.

In addition to extension of commercial waivers, we have introduced a six-month reduction in VAT, going down from 23% to 21%, and from 13.5% VAT rate to 9%, which will benefit the hospitality sector, together with a range of additional public capital investment measures to support the domestic economy.

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