Written answers

Thursday, 28 January 2021

Department of Enterprise, Trade and Employment

Covid-19 Pandemic Supports

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
Link to this: Individually | In context | Oireachtas source

7. To ask the Minister for Enterprise, Trade and Employment his plans to roll out a scheme similar to the restart and restart plus grant for rate-paying businesses following the current lockdown to ensure their survival; and if he will make a statement on the matter. [4673/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

We know the serious effects on business of the current Level 5 restrictions. 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. 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 COVID-19 Restrictions Scheme was introduced to provide targeted compensation to those businesses directly impacted by the imposition of public health restrictions. It has advantages over the Restart and Restart Plus Grants as the amounts payable under the scheme can be varied depending on the length of time that restrictions are in place. The level of payment also reflects the turnover of the affected businesses under normal trading conditions.

In the recent Budget, the Government allocated significant additional resources to Departments to provide help to different 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 additional monies will go towards supporting businesses, including those not in receipt of the COVID-19 Restrictions Scheme, such as through the €30m for private bus operators, €55m for a focused business scheme for strategic tourism businesses along with a €50m scheme for the live entertainment sector.

These are in addition to financial assistance and other schemes provided to businesses via Enterprise Ireland, InterTrade Ireland and Local Enterprise Offices.

I recognise that some businesses are falling between the stools and may not be eligible for CRSS. I have asked my officials to work with other relevant Departments to identify the type and number of businesses that fall outside the scope of the CRSS, and to report back to me with proposals on how we could devise an amended or new scheme.

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
Link to this: Individually | In context | Oireachtas source

8. To ask the Minister for Enterprise, Trade and Employment his plans to ensure business support grants will cover non-rate paying business and the self-employed given that the enterprise support grant was not an adequate or impactful grant for the loss of revenue as a result of previous lockdowns in 2020; and if he will make a statement on the matter. [4674/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Enterprise Support Grant, introduced by my colleague the Minister for Social Protection was a one-off grant introduced to reimburse certain non-rate paying businesses who had closed due to the COVID-19 pandemic, for re-opening costs up to a maximum of €1,000. My understanding is that the grant was not intended to replace lost revenues for such businesses, but instead to help those business meet certain costs such as the provision of PPE or similar costs which arose as a result of the pandemic.

At an early stage of this crisis, it became apparent that the impacts on economic activity were going to remain with us for much longer than originally anticipated. It also became clear that many businesses were incurring costs such as rent, rates, insurances, maintenance, security and other utilities, on an ongoing basis without the ability to generate the revenues required to meet these costs.

Most of these costs are associated with the running costs of a premises, while for businesses without a fixed premises, fixed costs will likely be lower as a proportion of their total expenses. That being the case, and in line with the practice in other jurisdictions, Government has designed supports aimed at meeting these fixed costs such as the Restart Grants and the COVID-19 Restrictions Support Scheme, which require that the business operates from a commercial premises.

I acknowledge that many businesses who do not trade from a commercial premises have been severely impacted, and for those individuals and businesses, Government has already moved to provide income supports in the form of the PUP, TWSS and EWSS which are payable regardless of sector and are available to employees, sole traders and proprietary directors. Where gaps have been identified, Government has moved quickly to fill those gaps and to ensure that nobody is left behind. Indeed, amendments now allow self-employed individuals to earn up to €960 over an 8 week period and still remain eligible for the PUP.

The Deputy should also note that in the 2021 Budget, the Government allocated significant additional resources to Departments to provide help to different 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 additional monies will go towards helping businesses, including self employed and those that are not rate paying businesses, such as through the €30m for private bus operators, €55m for a focused business scheme for strategic tourism businesses along with a €50m scheme for the live entertainment sector.

These are in addition to financial assistance and other schemes provided to businesses via Enterprise Ireland, InterTrade Ireland and Local Enterprise Offices.

Comments

No comments

Log in or join to post a public comment.