Written answers

Tuesday, 24 November 2020

Department of Trade, Enterprise and Employment

Covid-19 Pandemic Supports

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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164. To ask the Minister for Trade, Enterprise and Employment if supports will be made available to landlords who have premises rented to businesses that are now closed due to Covid-19 restrictions and are no longer receiving rents from tenants; and if he will make a statement on the matter. [38254/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I understand this is a difficult time for many businesses, including commercial landlords, and that many companies have had to close their businesses or curtail their activities due to COVID-19 restrictions. I am aware that these closures can have secondary effects impacting landlords and I recognise that many landlords have debt repayment obligations as well as other ongoing costs.

The issue of commercial rents is primarily a contractual matter for the parties involved. However, the Government has urged landlords and tenants to talk to one another and come to some arrangement, as it is in everybody’s interest that terms are amicably agreed. Landlords should be willing to do what they can to help their tenants to continue to operate rather than facing the risk of a vacant premises and inability to obtain new tenants. Equally, tenants should pay what they can and speak with their landlord when difficulties arise.

On 1st October, I published the Code of Conduct between landlords and tenants for commercial rents, which was developed in consultation with relevant stakeholders based on examples from other jurisdictions. The aim of the voluntary Code is to facilitate discussions between landlords and tenants impacted by COVID-19.

However, this Code should not be seen in isolation. To date, over €24 billion had been made available in support measures for businesses, including a package of over €7 billion worth of measures as part of the July Jobs Stimulus, and a total budgetary package of over €17 billion announced in Budget 2021 to help those impacted by COVID-19 and related public health restrictions. This further demonstrates the Government’s commitment to supporting the country through this crisis.

The Covid Restrictions Support Scheme (CRSS) announced as part of Budget 2021 will allow the Government to provide targeted support for those sectors and businesses that have been significantly impacted by the public health restrictions. It will help businesses to meet ongoing costs such as commercial rents, utilities or insurance. It offers financial assistance to businesses that have either been forced to temporarily close their premises or only been able to trade at significantly reduced levels as a result of restrictions introduced in response to COVID-19.

The relief will operate as a cash payment equal to 10% of the average weekly value of the 2019 business’s turnover up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000, for the same number of weeks as the restricted period. The intention of the scheme is to recognise the challenges experienced in particular by sectors that have been most affected by restrictions since the onset of the pandemic in March.

The full list of supports to help businesses impacted by the COVID-19 crisis is available on my Department’s website.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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165. To ask the Minister for Trade, Enterprise and Employment the assistance he can provide to a group (details supplied); and if he will make a statement on the matter. [38431/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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My Department and its agencies have been focused on coming up with solutions to help businesses overcome the difficulties caused by COVID-19.

In the wider context, the operation and reopening of Ireland's economy and society will be guided by the need to manage risk and repair the damage that COVID-19 has inflicted on society.

The Plan for Living with COVID-19 specifically recognises the impact of restrictions on weddings as a category of organised events. I am pleased that Fáilte Ireland has developed guidelines that can be used for the organisation of wedding functions. These are available on Fáilte Ireland’s COVID-19 Business Support Hub at: www.failteireland.ie.

Budget 2021 provides a significant package of tax and expenditure measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors. The measures in the Budget include the Employment Wage Subsidy Scheme, cash for businesses, low cost loans, commercial rates waivers and deferred tax liabilities.

We have also announced a six-month reduction in the VAT, going down from 23% to 21%, a reduction in the 13.5% VAT rate to 9% which will benefit the hospitality sector.

The New Covid Restrictions Support Scheme, operated by Revenue, offers a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels due to COVID. We are making changes to the Pandemic Unemployment Payment and the EWSS increasing the top rate to €350 for those who were earning in excess of €400 per week.

As announced in the July Stimulus, the Enterprise Support Grant was extended to assist eligible self-employed, including sole traders, who exit the PUP or jobseekers schemes to re-start their business. A self-employed person who closes their PUP should send their grant application to their local Intreo Centre to be processed. Further information is available at www.gov.ie.

Any person who is experiencing financial hardship may be eligible for other financial supports from the Department of Social Protection. Information on the supports available are at www.gov.ie.

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 31st August and I launched the €2bn Credit Guarantee Scheme on 7th September.

These measures are supplementary to the wide range of existing loan and voucher schemes available to assist businesses affected by COVID-19 provided through the July Jobs Stimulus and other Government initiatives. My colleague, Minister Catherine Martin T.D., Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht, may be able to provide more specific details on a roadmap to recovery for the events and hospitality industry, for which she has lead responsibility.

I am aware that there are certain businesses which might not be eligible for the CRSS or other measures announced in the budget, such as the €50 million fund for live entertainment. I have asked my officials to conduct work along with officials from the Department of Finance and the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, regarding how many businesses might be in this position and to report back to me with proposals.

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