Norma Foley
Question:471. Deputy Norma Foley asked the Minister for Business, Enterprise and Innovation when casual traders can return to work. [8100/20]
View answerCovid-19 Pandemic
Questions (471)
Written answers
The Government’s Roadmap for Reopening Society and Business sets out five stages for unlocking the restrictions put in place to contain the Coronavirus, at three week intervals. The Roadmap sets out how we can keep the level of transmission of COVID-19 as low as possible while balancing continuing restrictions in proportion with the positive social and economic benefits which will be brought about by businesses reopening. It is important to note that all decisions taken by Government on the timing of any lifting of restrictions as envisaged in Phases 2 to 5 of the Roadmap will be guided by the public health advice at the time.
On 15th May the Government announced that we would move to Phase 1 of the Roadmap from Monday May 18th. This is in line with advice received from the National Public Health Emergency Team (NPHET). The categories of workers, list of retailers and other facilities that can reopen under Phase 1 are available on the Government’s website gov.ie.
Businesses should review the Roadmap carefully and carry out a detailed assessment of their activities with regard to the continuing public health measures. Businesses should, based on their assessment, identify which category in which phase of reopening they will be in a position to reopen safely and in line with the continued public health measures. It is not necessary for businesses to seek official authorisation to reopen.
The National Return to Work Safely Protocol is a useful guide for businesses in making their assessments and adapting their workplace procedures and practices to comply fully with the COVID-19 related public health protection measures. It sets out in very clear terms for employers and workers the steps that they must take firstly before a workplace reopens, and then while it continues to operate.
The Protocol is available at https://dbei.gov.ie/en/Publications/Return-to-Work-Safely-Protocol.html.
The Health and Safety Authority, which is an agency of my Department, is the lead agency in overseeing compliance with the Protocol in the workplace. If employers or employees need further guidance on the Protocol, the HSA Helpline can be contacted at 1890 289 389 or wcu@hsa.ie.
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, which includes the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities. 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 for weeks and months ahead. For a full list of supports for business please see https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
On 8th May the Government agreed details of a further support which will give direct grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures. The Restart Grant is available to businesses with a turnover of less than €5m and employing 50 people or less, which were closed or impacted by at least a 25% reduction in turnover out to 30th June 2020. It is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers. The grant is equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.
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. My Department contributed to the considerations around the phased re-opening of sectors and I will work within Government to secure further details and clarity for businesses as we progress through the phases outlined in the Roadmap.
A wide range of stakeholders including employers, unions and representative groups were consulted and their advice formed part of the considerations when drawing up the Roadmap. It is a living document and Government has the ability to amends its plans depending on the circumstances existing as we progress through each phase. It will be subject to regular review in the context of the progression or suppression of the disease in Ireland or new guidance or research that emerges from other sources.
Covid-19 Pandemic Supports
Questions (472)
Norma Foley
Question:472. Deputy Norma Foley asked the Minister for Business, Enterprise and Innovation the supports in place to benefit bus and coach operators that are parked up as a result of the Covid-19 pandemic. [8101/20]
View answerWritten answers
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, which includes the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities.
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 for weeks and months ahead. For a full list of supports for business please see https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
The full range of Enterprise Ireland, Local Enterprise Office (LEO) and Údarás na Gaeltachta grant and advisory supports continue to be available to eligible firms to help with strategies to access finance, commence or ramp-up online trading activity, reconfigure business models, cut costs, innovate, diversify markets and supply chains and to improve competitiveness.
In that regard, Government will continue to explore funding potential for all enterprises including micro-enterprises as they work through the challenges facing them, including through any mechanisms allowable through the EU’s state aid framework.
For bus and coach operators, the SBCI Covid-19 Working Capital Scheme was announced on 11 March and opened for eligibility applications on 23 March. The Covid-19 Working Capital Scheme is offered by my Department in cooperation with the Department of Agriculture, Food and the Marine, and is supported by the InnovFin SME Guarantee facility. The scheme is operated by the SBCI. It currently makes available a fund of up to €200 m to eligible businesses that have been negatively affected by impacts arising from the outbreak of Covid-19 to enable those businesses to innovate, change or adapt in response to the current business environment. Following my further announcement on April 8 this Scheme is now being expanded to make available an additional €250 million in lending, which will bring the total amount of lending available under this scheme to €450 million.
The Future Growth Loan Scheme makes up to €300 million of loans available with a term of 8-10 years and is operated by the Strategic Banking Corporation of Ireland (SBCI) though participating lenders. We have seen strong demand for the scheme since its launch in April 2019 across all sectors and regions including in exporting businesses and family businesses.
These measures are in addition to the €150m of funding capacity in the Government’s Credit Guarantee Scheme, which is available to bus and coach operators.
For microenterprises (under 10 employees), Microfinance Ireland (MFI) are administering special COVID-19 Loans, with an additional €13m in capital support bringing its total lending capacity up to €20m for the coming period. There is also a substantial reduction in interest rates on these loans from 7.8% to 4.5%. Loans can be made up to €50,000 with no repayments required and no interest charged in the first six months.
I can assure the Deputy that I continue to work with my colleagues across Government to examine further appropriate supports to assist businesses impacted by Covid-19.
My colleague, Minister Shane Ross T.D., Minister for Transport, Tourism and Sport may be able to provide more specific guidelines or supports designed to suit your particular business.
Covid-19 Pandemic
Questions (473)
Norma Foley
Question:473. Deputy Norma Foley asked the Minister for Business, Enterprise and Innovation the position regarding plans to allow persons over 70 years of age who are deemed medically fit for work to be allowed to return to work; and if she will make a statement on the matter. [8104/20]
View answerWritten answers
Government policy is to protect those over 70 years and those extremely medically vulnerable by minimising interaction between them and others. This means that those who are over 70 years of age and those extremely medically vulnerable have been advised to stay at home and within their homes and to minimise all non-essential contact with other members of their household who are not cocooning themselves. This policy is being implemented to protect those who are at very high risk of severe illness from COVID-19 from coming into contact with the virus.
The Government’s Roadmap for Reopening Society and Business sets out five stages for unlocking the restrictions put in place to contain the Coronavirus, at three week intervals. The Roadmap sets out how we can keep the level of transmission of COVID-19 as low as possible while balancing continuing restrictions in proportion with the positive social and economic benefits which will be brought about by businesses reopening.
On 15th May the Government announced that we would move to Phase 1 of the Roadmap from Monday May 18th. This is in line with advice received from the National Public Health Emergency Team (NPHET). The community health measures that have been relaxed together with the categories of workers, list of retailers and other facilities that can reopen under Phase 1 are available on the Government’s website gov.ie.
It is important to note that all decisions taken by Government on the timing of any lifting of restrictions as envisaged in Phases 2 to 5 of the Roadmap will be guided by the public health advice at the time.
Question No. 474 answered with Question No. 446.
Job Losses
Questions (475)
Imelda Munster
Question:475. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation the steps she has taken, including meetings or correspondence with management and staff at a company (details supplied) and the IDA or other relevant parties, to save the jobs at risk; and if she will make a statement on the matter. [8139/20]
View answerWritten answers
The announcement by National Pen that it is to seek redundancies at its Dundalk facility is deeply disappointing. My immediate concern is for the workers and families who have been impacted by this announcement. Many of these workers have been with the company for many years, which makes this news all the more difficult.
The IDA have been in contact with senior management at National Pen and will continue to work closely with the company to support and maintain the Dundalk operation. The company has stated that it has experienced a significant decline in demand for its products. It has advised the IDA that the steps being taken now are necessary to secure the long-term future of the business and preserve the positions of the majority of the workers at the Dundalk operation.
IDA Ireland has already made the company aware of the Government supports that are available. I understand that the IDA will also be working with National Pen’s HR team to connect staff with other clients in the IDA portfolio in due course.
The Government will make every State support available to employees impacted by this announcement. My Department, the Department of Social Protection, as well as our State Agencies, will all be doing their utmost to help workers transition and find new employment opportunities.
It is important to remember that, despite the loss of these roles, National Pen will continue to be a significant employer in the region. The company has confirmed that it remains committed to operating in Ireland and will retain 380 staff in Dundalk.
Ireland’s economy, as we all know, is outward-facing, export-orientated and reliant to a large degree on global FDI. This means that when a multinational company makes decisions, either as result of Covid-19 or for other business reasons, we unfortunately can feel the impact here.
However, the employment situation in Louth has been positive in recent years with over 4,400 staff employed in IDA firms in Louth, a more than threefold increase on 2010. The pipeline of new jobs has included significant investments from Wuxi Biologic, Panasonic, Wuxi Vaccines and PCI Pharma.
Covid-19 Pandemic Supports
Questions (476, 477, 478)
Imelda Munster
Question:476. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation her plans to increase the funding available under the restart grant for small businesses in view of the scale of the financial difficulties facing SMEs; and if she will make a statement on the matter. [8140/20]
View answerImelda Munster
Question:477. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation if alternative methods of calculating the restart grant funding needs of businesses will be considered; her views on whether refunding 2019 rates bills does not reflect the restart funding needs of a given business; and if she will make a statement on the matter. [8141/20]
View answerImelda Munster
Question:478. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation the way in which microbusinesses that do not pay rates can access restart grant funding. [8142/20]
View answerWritten answers
I propose to take Questions Nos. 476 to 478, inclusive, together.
On Friday May 15th, 2020 the Government announced details of the new €250m Restart Grant providing direct grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures; with the grant being administered by local authorities from Friday, May 22nd, 2020.
Eligible businesses who have stayed open throughout the crisis, as well as those who are reopening under Phase 1 (from 18th May) and Phase 2 (8th June) of the Government’s Roadmap for Reopening Society and Business, are encouraged to apply first for the Restart Grant. These applications will be prioritised for payment by the local authorities.
To avail of the Restart Grant, applicants must be a commercial business and be in the Local Authorities Commercial Rates Payment System and:
1. have an annual turnover of less than €5m and employ between 1 to 50 people;
2. have suffered a projected 25%+ loss in turnover to end June 2020;
3. commit to remain open or to reopen if it was closed;
4. declare the intention to retain employees that are on The Temporary Wage Subsidy Scheme.
Subject to the qualifying criteria outlined above, any business that has a commercially rateable premises including those businesses with outstanding rates bills are eligible to make an application if they meet the criteria. The grant will be the amount of the rates demand in respect of calendar year 2019 only, subject to a minimum of €2,000 and a maximum of €10,000.
If a company is currently in a rateable premise but was not rate-assessed in 2019 it is still eligible to apply. The local authority can pay the grant based on an estimate of what the rates demand for 2019 would have been.
The grant will be the amount of rates demand in respect of calendar year 2019 only, subject to a minimum of €2,000 and a maximum of €10,000.
Within the funding available, the priority has been to support those who have suffered most, including closure of the business, but who will still have incurred ongoing costs.
The grant can be used to defray ongoing fixed costs, for replenishing stock and for measures needed to ensure employee and customer safety.
Businesses who are not in a rateable premises are not eligible.
Non-commercial organisations such as community and sporting premises are not eligible. Businesses that do not operate from rateable premises (tradesmen, service providers, etc) are not eligible.
I understand the concerns relating to business that do not operate from commercial premises.
However, tradespersons and service providers that operate on a mobile basis or that could continue to work remotely have been better placed to continue to trade and many don’t have the same levels of losses, of ongoing overheads or reopening costs that a fixed premises business will have. Within the funding available, the priority has been to support those who have suffered most, including closure of the business, but who will still have incurred ongoing costs.
We are also focussed on businesses that have continued to employ people, with the aid of the Temporary Wage Support Scheme, so that those jobs will be retained as soon as the business re-opens.
This direct grant support is part of the wider €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
Applications for the Restart Grant can be made online directly to local authorities since Friday May 22nd, 2020 and further information can be obtained by contacting the Business Support Unit of the relevant local authority.
We will monitor the Restart Grant as it is rolled out and continue to take on board issues as they arise.
Covid-19 Pandemic Supports
Questions (479)
Imelda Munster
Question:479. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation if the credit guarantee scheme will be amended to ensure that loans are available to SMEs to address Covid-19-related financial difficulties. [8143/20]
View answerWritten answers
Since the Covid-19 crisis began, Government has worked to put in place a suite of supports to ensure appropriate financing is available to businesses that have been impacted by the outbreak or by the restrictions that have been put in place to mitigate the spread of the disease.
As announced on Saturday May 2nd, Government has agreed a new €2 billion Covid-19 Credit Guarantee Scheme as a further development of the existing Credit Guarantee Scheme already available from AIB, BOI and Ulster Bank. This Scheme forms a major component of the Government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment. It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years. The guarantee will be able to be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less.
The Scheme will be available to all SME sectors, including primary producers in agriculture, horticulture and fisheries. These sectors are excluded from the current Credit Guarantee Scheme under State aid rules. They will be included under the Covid-19 Credit Guarantee Scheme arising from the amended State Aid rules under the European Commission’s State Aid Temporary Framework. The Scheme will also be available to small Mid-Caps (up to 499 employees) which are also excluded from the current Scheme.
My officials are currently engaged with the European Commission in seeking approval for the Covid-19 Credit Guarantee Scheme and ensuring the Scheme's adherence to the rules set out in their Temporary Framework.
The implementation of this Scheme will require primary legislation, the drafting of which has been approved by Government, and my officials are already working with the Office of the Parliamentary Counsel on this drafting work.
Enterprise Support Services
Questions (480)
Imelda Munster
Question:480. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation the loan schemes available to SMEs that allow them to borrow at 0% interest rates; and if she will make a statement on the matter. [8144/20]
View answerWritten answers
The loan schemes that have been put in place by my Department have been designed to achieve the widest reach with Exchequer funding in as fast a time as possible as one part of a suite of support measures for businesses impacted by COVID 19. Loan guarantee structures are a very effective response to the liquidity crisis, in particular where it is feasible to access counter-guarantees through the European Investment Bank [EIB].
There are significant advantages to operating loan guarantee schemes through participating financial providers. This allows the Government to leverage existing commercial lending infrastructure to provide an efficient mechanism for making competitive lending products available to Covid-19-impacted businesses. The guarantee structure ensures that eligible applicants to the schemes represents a reduced risk to the participating lender, which in turn ensures access to appropriate financing for more businesses.
However, the operation of these loan schemes through the financial providers also means that interest is a feature of the loans, as some interest must be charged by the lenders to cover overheads and capital costs if they are to continue to work with Government.
That said, the interest rates on the MFI Covid-19 loan scheme have been reduced from the interest rates of 6.8-7.8% typically offered by the MFI to a lower rate of 4.5-5.5%. The interest rate of 4% under the Covid-19 Working Capital Scheme represents a savings when compared with other similar lending available in the market, while the availability of loans of under €500,000 unsecured ensures that the scheme is more accessible to businesses.
Across the EU, different member states have prioritised different features of their respective liquidity supports to businesses, and so a direct comparison may not be appropriate. However, from the data available, Ireland’s loan guarantee schemes appear to be in line with many countries: they cover 80% of the loan value, at commercial or slightly lower rates.
Covid-19 Pandemic Supports
Questions (481)
Bernard Durkan
Question:481. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation if grant funding will be made to cafés and restaurants wishing to operate takeaway services for signage, screens and other equipment to facilitate social distancing; and if she will make a statement on the matter. [8185/20]
View answerWritten answers
On Friday May 15th, 2020 the Government announced details of the new €250m Restart Grant providing direct grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures; with the grant being administered by local authorities from Friday May 22nd, 2020.
The scheme will provide funding to enable small and micro business reconnect with their employees and customer base by helping to defray ongoing fixed costs and the costs associated with re-launching the business.
Eligible businesses who have stayed open throughout the crisis, as well as those who are reopening under Phase 1 (from 18th May) and Phase 2 (8th June) of the Government’s Roadmap for Reopening Society and Business, are encouraged to apply first for the Restart Grant. These applications will be prioritised for payment by the local authorities.
To avail of the Restart Grant, applicants must be a commercial business and be in the Local Authorities Commercial Rates Payment System and:
1. have an annual turnover of less than €5m and employ between 1 to 50 people;
2. have suffered a projected 25%+ loss in turnover to end June 2020;
3. commit to remain open or to reopen if it was closed;
4. declare the intention to retain employees that are on The Temporary Wage Subsidy Scheme.
Subject to the qualifying criteria outlined above, any business that has a commercially rateable premises including those businesses with outstanding rates bills are eligible to make an application if they meet the criteria. The grant will be the amount of the rates demand in respect of calendar year 2019 only, subject to a minimum of €2,000 and a maximum of €10,000.
Applications for the Restart Grant can be made online directly to local authorities from Friday May 22nd, 2020 and further information can be obtained by contacting the Business Support Unit of the relevant local authority.
Covid-19 Pandemic Supports
Questions (482)
Holly Cairns
Question:482. Deputy Holly Cairns asked the Minister for Business, Enterprise and Innovation her views on establishing a rental support scheme for small and medium-sized enterprises adversely affected by the Covid-19 emergency similar to that provided to private home renters. [8200/20]
View answerWritten answers
The issues businesses are facing in respect of commercial rents has been raised with me through the Enterprise Forum and Retail Forum, both of which I chair, and other channels.
These are difficult times and many companies have had to temporarily close their businesses and / or premise(s), curtail their activities or make alternative work arrangements due to COVID-19 restrictions. I am keenly aware that some businesses are concerned that some landlords are continuing to insist on the payment of rents and leases as normal despite their premises being closed.
At the same time, we must remember that landlords have their own financial obligations, like debt repayments, insurance or security costs, that still need to be paid. Where a landlord has debt in place, their flexibility will likely be driven by what their bank / lender will accept. The Minister for Finance raised the broader issue of rents in meetings with the pillar banks. He referenced this in his announcement of 18th March concerning an arrangement with the banks to the effect that any landlord who has agreed a deal with the banks on foot of the arrangement will be expected to pass the benefit on to their tenants. I reiterated this in the Dáil on 30th April last.
While commercial leases are primarily a contractual matter for the tenant and the landlord, the Government has urged landlords to demonstrate forbearance in these extraordinary times and to play their part, as everyone must, in helping the country through this difficult period. I would encourage tenants and landlords to engage with each other on this matter and come to some arrangement as it is in everybody’s interest that terms are amicably agreed.
I have asked my officials to raise the matter of commercial rents and leases across a number of Government Departments. An initial inter-departmental discussion has already taken place and I understand further engagement is underway with a range of stakeholders, including groups representing businesses and landlords, to gain additional insights and gather intelligence to inform any further discussions. I have also asked my officials to look into the different responses from other countries and to identify possible options for supports.
While different options are being explored, I would point out that any support to business in respect of rents alone would ultimately end up as a support to the landlord. Not only would it be difficult to estimate the costs involved for such a scheme, but the offering of support, or even the perception that such supports will be forthcoming, may affect the market and lessen the impetus for landlords to renegotiate with tenants.
The matter of legal protections for businesses who are unable to pay their commercial rents has been raised with the Attorney General. Specifically, I asked about the potential for legislation to prevent the eviction of commercial tenants who have failed to pay rent as a result of the pandemic and the possibility of legislating to place a moratorium on businesses having to pay rent for premises they cannot used due to the restrictions imposed by Government. I received a response on 13th May in which the Attorney General advises that there are significant legal difficulties in respect to both of the questions posed. The difficulties stem from a variety of legal bases including statutory, constitutional, contract and common law. I have asked my officials to consider the advice.
The Government is committed to ensuring as many businesses as possible survive this challenging period, and it will continue to look at how we can support businesses that have been impacted by the COVID-19 crisis.
I would like to point out that, on 2nd May, the Government announced an additional suite of measures to further support small, medium and larger business that have been negatively impacted by Covid-19. These included:
- A €10,000 restart grant for micro and small businesses based on a rates waiver / rebate from 2019 (see further information below);
- A three-month commercial rates waiver for impacted businesses;
- A €2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from 3 months to 6 years, which will be below market interest rates;
- A €2 billion Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund (ISIF), which will make capital available to medium and large enterprises on commercial terms; and
- The ‘warehousing’ of tax liabilities for a period of twelve months after recommencement of trading during which time there will be no debt enforcement action taken by Revenue and no interest charge accruing in respect of the warehoused debt.
The issue of supporting fixed costs, including commercial rents, was very much to the fore of our minds when the Government recently introduced the Restart Grant which will give direct grant aid to micro and small businesses to help them with the costs associated with re-opening and re-employing workers following COVID-19 closures. This grant will provide funding to enable small and micro business reconnect with their employees and customer base by helping to defray ongoing fixed costs and the costs, such as PPE, associated with re-launching the business.
The Grant will be available to businesses with a turnover of less than €5m and employing 50 people or less, which were closed or impacted by at least a 25% reduction in turnover out to 30th June 2020. It is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers. The grants will be equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.
Further information on all of these and additional Government supports for COVID-19 impacted businesses can be found at www.gov.ie or on my Department’s website (https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/).
Covid-19 Pandemic
Questions (483)
Gary Gannon
Question:483. Deputy Gary Gannon asked the Minister for Business, Enterprise and Innovation if she has met an organisation (details supplied) to discuss the way in which its industry will safely reopen; and if not, her plans to do so in the near future. [8225/20]
View answerWritten answers
I met with the organisation concerned by way of Conference Call today, Wednesday 20 May.
Covid-19 Pandemic Supports
Questions (484)
Gary Gannon
Question:484. Deputy Gary Gannon asked the Minister for Business, Enterprise and Innovation her views on the reluctance of banks to loan to SMEs in order for them to commence the process of reopening their businesses in accordance with social distancing guidelines; and the grants that will be made available to the hospitality sector to ensure the industry can maintain itself as the Covid-19 crisis abates while the economic conditions remain precarious. [8226/20]
View answerWritten answers
The Government has worked to put in place a suite of supports to encourage lending through the banks to SMEs, the following supports are available to all eligible business, including the hospitality sector.
The Covid-19 Working Capital Scheme and the Future Growth Loan Scheme both leverage counter-guarantees through the European Investment Bank to provide a significant guarantee to banks on loans to eligible businesses, reducing the risk associated with such lending. On 8 April I announced significant expansions to both schemes.
On 2 May, I announced a new €2bn Covid-19 Credit Guarantee Scheme. This Scheme forms a major component of the government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment. It will provide an 80% guarantee on lending to SMEs until the end of this year. The guarantee can be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of six years. The guarantee structure will reduce the risk exposure to the bank and open up lending which banks may otherwise have considered to be too high a risk.
The Pillar Banks have assured me that they will support businesses through the Covid-19 Crisis, and I continue to meet with them regularly to make sure they are delivering as such. The banks have had to deal with an overwhelming increase in activity since the outbreak of the COVID-19 crisis and this may have caused some delays in dealing with new business loans leading to a perceived reluctance to lend. While the State supported loan guarantee schemes provide risk coverage to the banks, banks do have an obligation to undertake credit assessment of the loans applied for according to their own policy and procedures. In these uncertain times, this poses many complexities.
I must highlight also that for micro-enterprises that have not achieved lending through the banks, application for a loan through Micro Finance Ireland could be considered. Microenterprises can access COVID-19 Business Loans of up to €50,000 from Microfinance Ireland. The terms include a six months interest free and repayment free moratorium, with the loan to then be repaid over the remaining 30 months of the 36-month loan period.
In addition, the newly launched €250m Restart Grant allows for direct grant aid to micro and small businesses of between €2,000 and €10,000. Application forms now available online on all local authority websites. The grant is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers.
To qualify for the Restart Grant, a business must
- have a turnover of less than €5m and have 50 or less employees.
- have suffered a projected 25%+ loss in revenue from 1st April 2020 to 30th June 2020.
- commit to remain open or to reopen if it was closed. The business must also declare the intention to retain employees that are benefitting from the Temporary Wage Subsidy Scheme (TWSS).
The COVID-19 outbreak will result in a serious downturn in the Irish, EU and wider global economy. To assist companies to respond to these challenges, and in doing so stabilise and rebuild their business, Enterprise Ireland, on behalf of the Department of Business Enterprise and Innovation has launched a new suite of COVID-19 supports; these are:
Sustaining Enterprise Fund - This €180 million fund will provide support to eligible manufacturing and internationally traded services companies employing 10 or more employees who have been impacted by a 15 per cent or more reduction in actual or projected turnover or profit, and/or have a significant increase in costs as a result of the COVID-19 outbreak. The objectives of the scheme are to:
- Ensure eligible companies have access to the necessary liquidity; and
- Sustain business so that companies can return to viability and contribute to the recovery of the Irish economy.
The Fund will provide financial assistance in the form of repayable advances of up to a maximum of €800,000 per company.
Sustaining Enterprise Fund – Small Enterprise: This fund will provide a €25k to €50k short term working capital injection to eligible smaller companies to support business continuity and strengthen their ability to return to growth and be trading strongly in 3 years’ time.
A NEW HPSU fund to Sustain Enterprises: This fund is aimed at EI High Potential Start-Up companies who, due to the Covid-19 pandemic are facing delays to projected sales growth and whose fundraising plans are significantly impacted or stalled. Under this fund, HPSUs can apply for co-investment of €50,000 per undertaking in the form of equity or convertible debt instruments.
In addition to this fund Enterprise Ireland has launched the following supports:
- Covid-19 Business Financial Planning Grant: A €5k grant for eligible companies to work with third party consultants to prepare a detailed financial plan with forecasts and assumptions. 337 applications have been received for Covid-19 Business Financial Planning Grant.
- Lean Business Continuity Voucher: A €2.5k voucher for eligible companies to access training or advisory services support related to the continued operation of their business during the current pandemic. 156 applications have been received for the LEAN Business Continuity Voucher.
- Covid-19 Online Retail Scheme is a grant for retail companies with greater than 10 employees to develop a more competitive online offer. This competitive call has a budget of €2 million. Successful applicants will receive funding support of up to 80% of project costs, with a maximum grant of €40,000.
A wide range of financial supports and guidance has been made available by my Department and wider Government to help businesses impacted by the COVID-19 crisis. Full details of all supports and guidance is available at https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/
It is important to check https://www.gov.ie/en/campaigns/c36c85-covid-19-coronavirus/ for the latest information, public health advice and guidelines from Government in relation to Covid-19.
Covid-19 Pandemic
Questions (485)
Alan Kelly
Question:485. Deputy Alan Kelly asked the Minister for Health when a person who teaches music on a one-to-one basis can return to work (details supplied); and if he will make a statement on the matter. [7090/20]
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The Government’s Roadmap for Reopening Society & Business, published on 1 May 2020, sets out an indicative path to the easing of COVID 19 restrictions and other actions in order to facilitate the reopening Ireland’s society and economy in a phased manner. The Roadmap specifies that decisions in relation to which actions will be taken and which public health measures might be lifted will be made in accordance with the Framework for Future Decision-Making which is as follows:
1. Before each Government consideration of the easing of restrictions, the Department of Health will provide a report to the Government regarding the following on/off trigger criteria:
a. The latest data regarding the progression of the disease,
b. The capacity and resilience of the health service in terms of hospital and ICU occupancy,
c. The capacity of the programme of sampling, testing and contact tracing,
d. The ability to shield and care for at risk groups,
e. An assessment of the risk of secondary morbidity and mortality as a consequence of the restrictions.
2. It will also provide risk-based public health advice on what measures could be modified in the next period.
3. The Government would then consider what restrictions could be lifted, having regard to the advice of the Department of Health as well as other social and economic considerations, e.g. the potential for increased employment, relative benefits for citizens and businesses, improving national morale and wellbeing etc.
4. It is acknowledged that there is also an ongoing possibility that restrictions could be re-imposed and this process will be carried out on an ongoing basis once every 3 weeks.
As is clear from the framework, it is the Government rather than I or my Department that will decide on any modifications to the current public health measures in place and those decisions will be informed by the status of the on/off trigger criteria and the public health advice received at the time that a decision is being made.
National Maternity Hospital
Questions (486, 502, 519)
Catherine Murphy
Question:486. Deputy Catherine Murphy asked the Minister for Health if the land earmarked for the development of the new national maternity hospital will be owned by the State or by a charitable organisation and leased by the State (details supplied); if it is leased, the terms and duration of the lease; the implications of the potential expiry of such a lease in respect of value for money in capital expenditure and security of national infrastructure; and if he will make a statement on the matter. [7136/20]
View answerGary Gannon
Question:502. Deputy Gary Gannon asked the Minister for Health the procurement process for land earmarked for the new national maternity hospital; if an organisation (details supplied) has transferred the land to the State or to a charitable organisation; if the process will result in the State having full ownership of the land or leasehold; if it is leased, the terms and duration of such lease; and if he will make a statement on the matter. [8223/20]
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Bríd Smith
Question:519. Deputy Bríd Smith asked the Minister for Health his views on the recent transfer of land earmarked for the development of the new national maternity hospital by an organisation (details supplied); if the land will be owned by the State or owned by an organisation and leased by the State; if it is leased, the terms and duration of the lease; and if the organisation will have a mandate or influence in respect of the ethos of the hospital. [7140/20]
View answerWritten answers
I propose to take Questions Nos. 486, 502 and 519 together.
I welcome the announcement by the Religious Sisters of Charity that the Vatican has approved the transfer of the Sister's shareholding in St Vincent's Healthcare Group (SVHG) to a new company, St Vincent’s Holdings CLG. This development will remove any remaining concerns that religious influence might be brought to bear on the new National Maternity Hospital (NMH). It also paves the way for the finalisation of the legal framework which will protect the State’s investment in the new hospital and ensure that the new NMH will have clinical and operational, as well as financial and budgetary independence in the provision of maternity, gynaecology and neonatal services.
The governance arrangements for the new NMH will be based on the provisions of the Mulvey Agreement. The Mulvey Agreement was an agreement between the NMH and the SVHG which was finalised in November 2016, following extensive mediation discussions. This Agreement provides for the establishment of a new company - NMH at Elm Park DAC - and ensures that a full range of health services will be available at the new hospital without religious, ethnic or other distinction.
My Department continues to engage with the SVHG, the NMH, the HSE and the Chief State Solicitor's Office in relation to the legal framework. The new hospital, which will remain in State ownership, will be built on a site leased from the SVHG for a period of 99 years. The State will provide an Operating Licence to the NMH at Elm Park DAC and the SVHG to facilitate the provision of health services in the new building.