Written answers

Wednesday, 3 February 2021

Department of Enterprise, Trade and Employment

Covid-19 Pandemic Supports

Photo of James BrowneJames Browne (Wexford, Fianna Fail)
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31. To ask the Minister for Enterprise, Trade and Employment the position regarding the provision of financial supports to drink wholesalers; and if he will make a statement on the matter. [5798/21]

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 am committed to ensuring that the Government will offer as much assistance and support as possible. My Department has worked to ensure that appropriate financial supports are in place for businesses that require finance as they develop their response to their exposure to impacts arising from COVID-19. The uptake of the schemes and grants available has been robust and indicates that businesses are taking action in response to this period of disruption.

Budget 2021 also 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, including second line supply businesses. We are providing for an extension of the tax warehousing scheme to include repayments of Temporary Wage Subsidy Scheme funds owed by employers and preliminary tax obligations for adversely affected businesses.

To ensure that all self-employed taxpayers can benefit from the losses provision introduced in the July Stimulus, we are also providing that debt warehousing provisions be extended to include the 2019 balance and 2020 preliminary tax to allow such taxpayers to defer payment for a period of a year with no interest applying.

The Minister for Finance is also delivering on the Programme for Government commitment to equalise the Earned Income Credit with the PAYE credit by raising it by €150 to €1,650.

These measures are in addition to the July Stimulus of enterprise measures, which includes 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.  COVID-19 Business Loans up to €25,000 are available through Microfinance Ireland. The loans can range from €5,000 to €25,000.

Bord Bia is providing a range of supports for impacted food business, including an information hub; training supports; and the introduction of the €1m COVID-19 Response Marketing Package for businesses to accelerate eCommerce and expand marketing activities in the context of rapidly changing trading conditions. Bord Bia continues to support quality assured Irish produce through promotion campaigns and is also supporting food companies to re-orient their produce to meet the needs of retail customers, and to explore any import substitution opportunities. My colleague, Charlie McConalogue, TD, Minister for Agriculture, Food and the Marine, may be able to provide more specific guidance on supports for the second line food supply businesses.

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 and other Departments to identify the type and number of businesses that fall outside the scope of CRSS and are not covered by other sectoral schemes, and to report back to me with proposals on how we could amend CRSS or develop a new scheme for those companies.

Photo of Martin BrowneMartin Browne (Tipperary, Sinn Fein)
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32. To ask the Minister for Enterprise, Trade and Employment the plans in place to enable businesses that have been closed for extended periods of time due to Covid-19 restrictions to reopen in a manner that takes into account their changed financial situations; his plans to assist these businesses to reopen in a manner that will meet the changed business landscape that will result from the impact of the virus; his plans to avoid a cliff-edge withdrawal of supports once it becomes appropriate for them to reopen; his further plans to provide them with advice and supports on changing their business model if needed; and if he will make a statement on the matter. [5816/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I recognise the impact that this pandemic is having on businesses right across the country. I know that employers and employees want to get back to work and I support them in that ambition, but it must be safe to do so.

In order to assist businesses to address the challenges posed by COVID-19, the Government has put in place a comprehensive suite of supports for firms of all sizes. These supports are designed to build confidence, to further assist businesses in terms of the management of their companies and to allow them to begin looking to the future and start charting a path forward  

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

COVID-19 has accelerated the transition to online retailing and seen retail come up with new and innovate ways to trade safely, to protect its employees and customers.  My Department introduced the COVID-19 Online Retail Scheme to support Irish-owned retail businesses to rapidly adapt and enhance their online business capability as they work within the COVID-19 public health measures. The Scheme will also help to position retail businesses for recovery in the future, once the public health emergency and related measures have passed.

The Local Enterprise Offices will continue to adapt their supports to deal with the changing external environment ensuring that they are robust in their offerings to business in tackling existing and emerging economic challenges for business.  The LEO network will continue to drive uptake of LEO offers and supports through the implementation of its ‘Making It Happen’ communications strategy at national level across the brand pillars; Pre-Start, Start & Grow.  A national brand campaign under the Resilience & Recovery theme is aimed at supporting those affected by Covid-19, Brexit and as a shield against further economic downturns.The campaign will generate awareness of the enterprise pathway with Enterprise Ireland and cross promotion of EI supports to LEOs & LEO clients (in accordance with the programme for Government).

The LEO’s have undertaken significant work in supporting business across a range of sectors develop contingency plans to diversify and pivot their business ensuring that they are resilient and can continue to trade. Resources will be utilised to increase one to one engagement with clients to identify innovation and technology challenges delivering appropriate solutions. A core focus of the LEO’s is supporting owner manager capability and development. Developing the confidence and driving the ambition of local firms to scale and compete will continue to be a priority in the coming years.

I am working with my colleagues across Government to assist businesses impacted by COVID-19 and I will continue to monitor the measures in place for businesses with the goal of setting our country towards economic recovery. The Government is determined to ensure there will be no cliff-edge scenario and businesses will continue to be supported as much as possible.

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