Written answers

Thursday, 9 December 2021

Department of Enterprise, Trade and Employment

Covid-19 Pandemic Supports

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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148. To ask the Minister for Enterprise, Trade and Employment if there has been abuse of State Covid-19 supports by businesses. [60805/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Government has worked to support businesses through these challenging times with a wide range of measures for firms of all sizes, which includes the wage subsidy scheme, business continuity and trading online grants, Restart Grants, COVID-19 Working Capital Scheme, the COVID-19 Credit Guarantee Scheme, the Future Growth Loan Scheme, commercial rates waivers and warehousing of tax liabilities. Details of the supports can be found on my Department’s website: Government supports for COVID-19 impacted businesses - DETE (enterprise.gov.ie). I also publish a update table on the uptake of the range of advisory and finance schemes on my Department's website.

On 3rd December the Government agreed some additional public health measures to help to reduce the spread of COVID-19 including extra economic supports approved for sectors impacted by public health measures.

We recognise that these decisions, coming in addition to those of 16th November, will have a particular impact on sectors such as hospitality, the night time economy, and the arts and entertainment sectors.

In addition to existing economy-wide schemes, including the Employee Wage Subsidy Scheme (EWSS), which will remain in place at current rates of payment and qualification criteria, the Minister for Finance is introducing a new scheme for businesses in the hospitality sector that are subject to restrictions on operating.

This will adjust the COVID Restrictions Support Scheme (CRSS) to support businesses whose trade is significantly impacted and which are subject to regulatory restrictions on operating. This will involve a weekly payment of payment of 12% of turnover for qualifying businesses. Further details will be provided by the Department of Finance.

There will also be a further extension of the current targeted commercial rates waiver for the first quarter of 2022. This will be put in place at an additional cost of approximately €62.3 million.

The Government has also agreed to a limited reopening of the Pandemic Unemployment Payment for workers who are temporarily laid off due to the impact of these public health restrictions. There will be a number of refinements to the scheme design to target it more effectively. Further details will be made available by the Department of Social Protection.

While we are responding to a very dynamic situation to address the challenge of getting the right assistance to firms and workers at the right time, all schemes of my Department and agencies include appropriate governance and oversight in the administration of advisory and funding schemes. My officials are currently in the process of preparing audits of the Restart and SBASC schemes.

I would urge businesses to ensure that they are aware of what is available to them and apply for the appropriate schemes. It is important to note that all business supports are being kept under review to ensure that they are timely and target those that need them the most.

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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149. To ask the Minister for Enterprise, Trade and Employment the supports his Department is providing for the retail sector; and if he will make a statement on the matter. [60823/21]

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The retail sector is the largest private sector employer in the country, with over 280,000 workers employed across the country. The rapid digital transformation of consumer trends and shopping preferences combined with competition from sophisticated international business models in recent times presents both opportunities and threats to many businesses operating in the Irish retail sector.

The sector has also faced significant challenges due to the impact of COVID-19 and the resulting period of closure of non-essential retail, and the ongoing public health regulations during the pandemic. Despite this, retailers in Ireland continue to play a critical role in the national response to COVID-19.

To date a range of business supports have been developed for businesses, including retail. These include the Small Business Assistance Scheme (SBASC), The Covid 19 Restrictions Support Scheme (CRSS), wage subsidies, a commercial rates holiday, low-cost loans, a Vat Reduction and the publication of a Code of Conduct between landlords and tenants on commercial rents.

As the Deputy is aware, COVID-19 has accelerated the transition to online retailing and the retail sector has responded to the challenge by coming up with new and innovative ways to trade safely, to protect its employees and customers. Two schemes offered by my Department can assist retailers in their digital transformation journey.

The COVID-19 Online Retail Scheme (ORS) was specifically introduced 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. To date the COVID-19 ORS has provided funding of €18.2m to 503 retailers under three calls.

Prior to the COVID-19 competitive ORS, my Department initially launched a pilot ORS in 2018. The scheme was administered by Enterprise Ireland. The total approved under the combined Online Retail Schemes is over €19m.

The ORS scheme is complementary to the €2,500 Trading Online Voucher scheme, provided through the Local Enterprise Offices for companies with up to 10 employees. While this scheme is not solely for the retail sector it provides assistance to retailers to begin their online trading journey.

In 2020 the scheme attracted 17,315 applications and 12,984 approvals to a value of €30.6m. Between 1st January and 1st December 2021 there have been 4,306 approvals to a value of €9,323,886.

The full range of supports offered by my Department and across Government for businesses, including retailers, can be found on enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/

The Government will continue to address the needs of the sector and engage with retailers through the Retail Forum, which provides a platform for structured engagement between the retail sector, my Department and all relevant Departments and State Agencies.

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