Written answers

Wednesday, 13 January 2021

Department of Enterprise, Trade and Employment

Covid-19 Pandemic Supports

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
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29. To ask the Minister for Enterprise, Trade and Employment if he will provide support for the owners of a business (details supplied). [44938/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I am keenly aware that businesses are continuing to make massive sacrifices to protect their communities and I am committed to ensuring that the Government will offer as much assistance and support as possible. My Department has worked to ensure that appropriate supports are in place for businesses that require finance as they develop their response to impacts arising from COVID-19. The uptake of these supports has been strong and indicates that businesses are taking action in response to this period of disruption.

Budget 2021 provided 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 are in addition to those announced in the July Stimulus, including the Employment Wage Subsidy Scheme, cash for businesses, low cost loans, commercial rates waivers and deferred tax liabilities. Details of the wide range of COVID-19 schemes are available on my Department’s website at .

As part of Budget 2021, the COVID Restrictions Support Scheme, operational through Revenue, 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.

Because businesses have to close, we have made changes to the Pandemic Unemployment Payment and the EWSS. Both changes increase in the top rate to €350 for those who were earning in excess of €400 per week. This change to payment rates will apply in respect of all existing and new applicants.

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.

We have also announced a six-month reduction in the VAT, going down 21%, and 9% respectively which will benefit the hospitality sector, together with a range of additional public capital investment measures to support the domestic economy.

These supports 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.

I'm aware that some businesses are not able to access CRSS and might be falling between the stools. I have asked my officials to work with the Department of Finance to identify the type and number of businesses that fall outside the scope of CRSS and are not covered by other sectorial schemes, and to report back to me with proposals on how we could amend CRSS or develop a new scheme for those companies.

My colleague, Minister Darragh O’Brien T.D., Minister for Housing, Local Government and Heritage, may be able to provide further assistance in relation to the issue of harbour rates which is a matter for each local authority.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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30. To ask the Minister for Enterprise, Trade and Employment if he will meet with representatives of the car rental industry to hear and find solutions for Covid-19-related issues regarding the sector; and if he will make a statement on the matter. [45046/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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While sectorial development responsibility spans a range of Government Departments, as Tánaiste and Minister for Enterprise, Trade and Employment I am always interested in hearing industry insights into sectorial challenges to inform a strategic and coherent approach to economic development.  Officials in my Department have examined submissions from the car rental industry throughout the course of the pandemic.  I also note that a representative from the industry was invited to participate in the virtual stakeholder engagement event we held in October to inform the development of the National Economic Plan.

I recognise the severe impact the pandemic has had on international tourism and consequently, the car rental market, and that recovery is dependent on the opening up of international travel.  I am aware of the fundamental role that the car rental industry plays in supporting overseas tourism and providing the opportunity for tourists to visit all parts of the country, particularly the less accessible rural areas.  This is crucial to local economies and jobs. 

Measures introduced in the July Stimulus had a wide reach across the economy and respond to many of the needs outlined by the sector. Budget 2021 allocated significant additional resources to Departments to provide supports to sectors. I would highlight the €395m provided to the Department of Transport and the €222m allocated to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.

These monies are additional to the other schemes available from bodies under my own Department such as credit guarantee schemes and supports provided to business via EI, InterTrade Ireland and Local Enterprise Offices. The Revenue tax debt warehousing scheme and the COVID restrictions support scheme are also available to businesses to help them manage the impact of the pandemic.

Maintaining a competitive business environment will be a core focus of the forthcoming National Economic Plan.  Government is aware that insurance reform is a priority for the car rental sector and there is a shared determination across Government to reduce insurance costs and improve availability of cover. The Government will drive the implementation of the recently published Action Plan for Insurance Reform which will see insurance reform in three broad areas over the next 18 months: tackling cost concerns and increasing transparency; legal reforms; and PIAB reform and increasing competition.

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