Martin Browne (Tipperary, Sinn Fein)
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466. To ask the Minister for Finance the supports in place to reimburse businesses for stock they have had to dispose of as a result of stock going out of date or for other reasons that relate to the closure of their premises due to Covid-19 restrictions; and if he will make a statement on the matter. [14968/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I wish to advise the Deputy that I do not have responsibility for this matter. However, I can confirm that:  

- There has been over €630 million in lending approved to 5,260 businesses across State-backed loan guarantee schemes.

- Take-up of these schemes has varied. There has been high demand for the Future Growth Loan Scheme (FGLS) and working with the European Investment Fund, the Future Growth Loan Scheme was expanded in the 2020 July Jobs Stimulus and makes up to €800m in lending available to eligible businesses to support long-term, strategic investment, including in response to COVID-19. I understand that a number of the participating banks (AIB, Bank of Ireland and Ulster Bank) have currently suspended new loan applications under the FGLS while they process a significant pipeline of existing applications.

- The SBCI COVID-19 Working Capital Scheme makes available working capital loans to help businesses to innovate, change or adapt in response to the pandemic. These innovations may include adjustments to ensure that a business can continue to operate safely.

- The COVID-19 Credit Guarantee Scheme (CGS) was launched by Government on the 7th September 2020 and is the biggest ever state-backed loan guarantee in Ireland. Its focus is to provide additional liquidity to businesses in a wide range of sectors. This has resulted in an increased diversification in loan products available to Irish businesses and greater geographical reach for the COVID-19 CGS.

- While take up of the COVID-19 CGS is less than was foreseen, this is due to the significant supports that Government has ensured are available for businesses during COVID-19 restrictions, including the EWSS, CRSS, tax warehousing and the commercial rates waiver.

- Low demand for credit is a consistent feature of the Irish SME environment. These Government supports, together with general forbearance from the financial system, including payment breaks, have meant that Irish businesses have not looked to access credit during COVID-19 restrictions, including through Government backed loans schemes, at greater levels then the pre-COVID period.

- It is envisaged that SME demand for credit and the use of state backed loans will increase as COVID-19 restrictions are lifted and the economy and businesses are able to reopen.

It should be noted that whether a business can make a successful insurance claim in relation to (the cost of) stock disposed of or wasted because of closure due to COVID-19 will depend on the specifics of their individual policy. While business interruption is generally a feature of standard business insurance policies, the terms and conditions for the policies written by insurance companies will vary and also depend on how insurers price the risk underlying those policies. As the Deputy will be aware, I cannot direct or require that insurers cover claims resulting from infectious diseases such as COVID-19.

Loan, grants and schemes for Business

COVID Supports Data Dashboard – Week ending 12 March 2021

Pandemic Unemployment Payment (PUP)

Employment Wage Subsidy Scheme (EWSS)

EWSS Claims

Covid Restriction Support Scheme (CRSS)

Total payment processed to date: €370.5m

Stay and Spend Incentive (SASI)

Including 1,600 re-registrations and excluding 2,900 employers who registered then subsequently cancelled their registrations.

Compared with 11 February EWSS statistics

Compared with January 2021

The Covid Restrictions Support Scheme (CRSS) was announced in the Budget on 13 October 2020. The details are set out in the Finance Act 2020 and guidelines on the operation of the scheme, including the eligibility criteria, are available on the Revenue website.

The support is available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.

The CRSS applies to businesses carrying on trading activities from a business premises located in a region subject to restrictions, which requires the business to prohibit or considerably restrict customers from accessing their business premises and as a result, is operating at less than 25% of turnover in 2019.

The CRSS is an additional measure for businesses in a region subject to significant Covid-19 restrictions. Businesses who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.

The purpose of the CRSS is to provide additional support to the businesses who have had to close temporarily or significantly restrict access to their premises as a direct result of public health Regulations. 

In addition, you may be aware of the Tourism Business Continuity scheme, a €55m strategic funding scheme announced as part of Budget 2021 to support tourism businesses which was launched recently. Further details of the scheme are available on the Fáilte Ireland website at 

The first phase of the Tourism Business Continuity Scheme is now open for applications from businesses in the following categories who meet the eligibility criteria:

- Outdoor activity providers

- Tourism golf courses

- Hop-on Hop-off bus tours

- Cruise hire companies

- Boat tours operators

- Visitor attractions not eligible for CRSS

- Caravan and camping / outdoor accommodation

In this regard, it may be noted that the Tánaiste and Minister for Enterprise, Trade and Employment recently announced that the Small Business Assistance Scheme for Covid (SBAC) is open for applications through Local Authorities. It is available to companies, self-employed, sole traders or partnerships with a minimum turnover of €50,000 and not eligible for the CRSS, Fáilte Ireland Business Continuity Scheme or the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media’s Live Performance Support. Further details are available at