Written answers

Wednesday, 2 December 2020

Department of Trade, Enterprise and Employment

Covid-19 Pandemic Supports

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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27. To ask the Minister for Trade, Enterprise and Employment the direct business financial aid available to companies involved directly and indirectly in tourism transport and whose businesses are closed due to international flight travel restrictions introduced to fight Covid-19. [40587/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I am keenly aware that businesses are making a massive sacrifice to protect their communities and I want the Government to offer as much assistance as possible. My Department and its agencies have been focused on coming up with solutions to help businesses overcome the difficulties caused by COVID-19. Details of the wide range of supports available are on my Department’s website at .

The Government’s July Stimulus included €7bn of enterprise measures, including the Wage Subsidy Scheme extended through 2021, the Pandemic Unemployment Payment, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst second line support businesses. In addition, a find of €10m was made available to assist the Coach Tourism sector. The Coach Tourism Business Continuity Scheme is administered by Fáilte Ireland and was open for applications up to 5th November 2020.

Budget 2021 provides a significant package of tax and expenditure measures to build the resilience of the economy and to help self-employed and 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.

Budget 2021 included a number of further substantial measures to support and strengthen the tourism sector, such as the provision of an additional €55m in Business Continuity funding to support strategic tourism businesses. This funding will be administered by Fáilte Ireland and focused on those strategic businesses. Fáilte Ireland are currently engaging with those tourism sectors in the design of funding schemes taking into account the effect of other horizontal funding measures.

I continue to work with my colleagues across Government to assist businesses impacted by COVID-19 and to address suitable enterprise measures in the context of the evolving COVID-19 and Brexit challenges to our economy and our people.

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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28. To ask the Minister for Trade, Enterprise and Employment the number of businesses that have had their restart grants plus recalled following the report from the Restart Grant Working Group (details supplied); the number of grants called by local authority; and the total value of the grants recalled by local authority. [40593/20]

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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29. To ask the Minister for Trade, Enterprise and Employment if he will respond to an organisation (details supplied) that have contacted his office regarding the recalling of the restart grants plus for its members; and his views on whether the recalling of the of this grant aid was unfair and if it constitutes a breach of rights based on legitimate expectation. [40594/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 28 and 29 together.

The Restart Grant Plus was introduced as part of the response to the effects on business of the COVID-19 pandemic restrictions. The Scheme has been operated by the 31 Local Authorities on behalf of my Department, and closed to new applications on 31 October 2020. It was effectively replaced as part of Budget 2021 with the Covid Restrictions Support Scheme (CRSS) operated by the Revenue Commissioners.

My Department does not have a role in individual applications and therefore, does not collate or hold information relating to individual cases. In response to the Deputy’s specific question, I can confirm that I received correspondence from the organisation in question and the matter is currently under consideration.

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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30. To ask the Minister for Trade, Enterprise and Employment the types of businesses that have been categorised as non-rateable due to their being located in shared spaces which are themselves subject to rates; and the total value of grants to be refunded due to this distinction. [40606/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Restart Grant Plus was introduced as part of the response to the effects on business of the COVID-19 pandemic restrictions. The Scheme has been operated by the 31 Local Authorities on behalf of my Department, and closed to new applications on 31 October 2020. It was effectively replaced as part of Budget 2021 with the Covid Restrictions Support Scheme (CRSS) operated by the Revenue Commissioners.

My Department does not have a role in individual applications and therefore, does not collate or hold information relating to individual cases. The Local Government Management Agency (LGMA) has advised that a number of Local Authorities have reported having sought/received return of grants. However, as appeals are ongoing by the local authority network and in some cases grants are being returned voluntarily by businesses, for example in the case where a business failed to reopen or moved to an alternative building, we do not as yet have final figures as to amounts returned.

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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31. To ask the Minister for Trade, Enterprise and Employment the details on the take up of the restart grant and restart grant plus; and if he will make a statement on the matter. [40663/20]

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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32. To ask the Minister for Trade, Enterprise and Employment the number of outstanding applications that remain for the now closed restart grant plus scheme; the way in which his Department will address these applications; and if he will make a statement on the matter. [40664/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 32 and 31 together.

The Restart Grant and Restart Grant Plus schemes were introduced as part of the response to the effects on businesses of the COVID-19 pandemic restrictions and is now closed to new applications from 31 October 2020. The Schemes are administered by the 31 Local Authorities in line with the eligibility criteria as agreed with my Department. However, my Department has no function in the processing of individual applications. The schemes have been superseded by Budgetary measures including the COVID Restrictions Support Scheme (CRSS) operated by the Revenue Commissioners.

As of week ending 27 November 2020, the Restart Grant Plus scheme has received 63,324 applications, of which 56,398 have to date been approved for grants, to a value of €414,394,078. Of those grants approved, 53,301 have been paid, while a further 3,097 are currently in progress.

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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33. To ask the Minister for Trade, Enterprise and Employment the details of the take-up of the credit guarantee scheme; his Department’s plans for this scheme in 2021; and if he will make a statement on the matter. [40665/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The COVID-19 Credit Guarantee Scheme was launched by Government in September to support those businesses that have been negatively impacted as a result of the outbreak of COVID-19. It is the biggest ever state-backed loan guarantee Scheme in Ireland.

The Scheme provides an 80% State guarantee on lending for terms between 3 months and five and a half years and offers a range of lending products between €10,000 and €1 million including working capital and term loan facilities. Loans up to €250,000 are unsecured. It is available to SMEs, small Mid-Caps and primary producers.

As a result of the high level of the State guarantee, loans are being provided at interest rates lower than the current market rate for similar loans. This low-cost funding along with other grants which are available provides ready access to funding for businesses during this unprecedented time.

As at 20 November, 2,301 applications were received for a value of €135m and 1,140 loans with a value of €54m were approved and drawn (1,382 loans with a value of €66m were approved and drawn up to 26 November).

The Scheme was developed in accordance with the European Commission’s Temporary Framework to take advantage of the relaxation of State Aid rules and required approval from the European Commission. The Scheme was originally scheduled to run until 31 December 2020 in line with the requirements of the Temporary Framework. Following the extension of the terms of the Temporary Framework, Government approved on 24 November, the extension of the COVID-19 Credit Guarantee Scheme to run until 30 June 2021. Thereby making lending facilities available until that date.

The COVID-19 Credit Guarantee Scheme is currently available through Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland. In recognition of the need to make this Scheme as widely available as possible an open-call for new on-lenders has been completed and proposals are being reviewed by the Strategic Banking Corporation of Ireland in respect of potential new lenders. I therefore expect to confirm a number of new lenders will be joining the Scheme in the coming weeks which will increase access to the Scheme. These new lenders will also provide an opportunity for SMEs to avail of a wider range of products in 2021.

I can assure the Deputy Government will continue to work with lenders to increase the visibility and accessibility of the Scheme and to ensure it continues to be promoted to a wide variety of audiences.

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