Catherine Murphy (Kildare North, Social Democrats)
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173. To ask the Minister for Enterprise, Trade and Employment if he will provide ongoing fixed costs supports for SMEs after all levels of public health restrictions have ceased in order for businesses to scale up activities. [14992/21]

Leo 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 their exposure to impacts arising from COVID-19. Details of all schemes can be found on my Departments website: Government supports for COVID-19 impacted businesses - DETE (enterprise.gov.ie)

The financial support the Government is providing businesses and workers affected by the pandemic is unprecedented. Almost a million people of working age are now in receipt of weekly payments including the Pandemic Unemployment Payment (PUP), Employment Wage Subsidy (EWSS) and Jobseekers Benefit or Allowance. Support for business includes the weekly CRSS payment for businesses forced to close their doors to the public, the Small Business Assistance Scheme for COVID (SBASC), reduced VAT rates, a commercial rates holiday, the Sustaining Enterprise Fund, the Tourism Business Continuity Scheme as well as low-cost loans.

The Government has repeatedly stated that there will be no cliff-edge scenario for businesses regarding the supports in place.

My Department, its Agencies and the Local Enterprise Offices are actively listening to the needs of businesses and are working vigorously to ensure adequate and flexible measures are being put in place to help SMEs survive and re-open when it is safe to do so.

On 9th February last I announced a new €60m Scheme called the Small Business Assistance Scheme for COVID (SBASC) to provide grants to businesses ineligible for the Government’s other existing schemes such as the COVID Restrictions Support Scheme (CRSS), the Fáilte Ireland Business Continuity grant or other direct sectoral grant schemes. This scheme aims to help businesses with their fixed costs, for example, rent, utility bills, security.

Applications for Phase 1 of the SBASC are now open and should be made to the relevant Local Authority.  The closing date for receipt of applications is 21 April 2021.

The Local Enterprise Offices 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.

Located nationwide LEOs offer direct grant aid to microenterprises up to 10 employees in the manufacturing and internationally traded services sector. 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.

Scaling and growing the export and start-up base continues to be a priority of this Government.  Through Enterprise Ireland, my Department provides assistance to entrepreneurs and start-up companies to help with business planning, mentoring and development advice, feasibility funding and finance. Programmes and initiatives include:

- Enterprise Ireland’s New Frontiers Development Programme, the national entrepreneur development programme for early stage start-ups.

- A Competitive Start Fund to support start-up companies to reach key technical and commercial milestones.

- Support for High Potential Start-Ups (HPSUs) companies with the potential to develop an innovative product or service for sale in international markets.

While addressing the current needs of business, I am keenly aware that we as a Government need to look towards safeguarding the future of small businesses so that we can facilitate greater growth, productivity and sustainability within Irish SMEs.

That is why in the latter half of 2020, I established an SME Growth Taskforce of entrepreneurs, business leaders and other stakeholders to fulfil the commitment made in the recent “Programme for Government – Our Shared Future”, to draw up an ambitious long-term strategic blueprint for SMEs and entrepreneurs beyond COVID-19.

The resulting ‘Report of the SME Taskforce: SME and Entrepreneurship Growth Plan’, which was published last month by my Department, sets out a wide range of recommendations with long-term strategic relevance for SMEs and entrepreneurs.

Importantly, the recommendations in the Report include measures to help SMEs and entrepreneurs to start up, scale up and access foreign markets, as well as recommendations aimed at helping SMEs to become more productive and ready for the transition to a digital, green economy.

These proposals, while not yet Government policy, will be considered by a Ministerial-led SME & Entrepreneurship Implementation Group, in conjunction with appropriate Government Departments, Agencies and other stakeholders, during the course of 2021.

Finally, while it is too early to judge what financial remedies will be required or appropriate when all public health restrictions have been lifted, my Department will continue to monitor the effectiveness and appropriates of all financial remedies as the position regarding the level of restrictions develops.