Dáil Éireann Debate, Tuesday - 9 June 2020
292. Deputy Anne Rabbitte asked the Minister for Business, Enterprise and Innovation the reason applications made by companies (supplied supplied) for business continuity vouchers were rejected; if the applications can be reassessed; if there is scope for the preferred option of vouchers over mentoring; and if she will make a statement on the matter. [10099/20]
View answerThe primary aim of the Business Continuity Voucher scheme was to support companies to make informed decisions regarding the immediate measures needed to continue trading during the COVID lockdown phase while securing the safety of all employees and future business viability through identification of remedial actions. Examples of what it could be used to support include:
- Develop business continuity plan
- Assess current financial needs in the short term to medium term
- Reduce variable costs, overheads and expenses,
- Review and explore supply chain financing options
- Implement remote working processes or procedures
- Leverage HR expertise
- Leverage ICT expertise
- Prepare a business case for application to emergency financial interventions available through Banks, Strategic Banking Corporation of Ireland and Micro Finance Ireland.
In this instance relating to two specific companies in Galway, I understand from the Local Enterprise Office in Galway that they have reviewed this case on three separate occasions, 7th May, 12th May and most recently on receipt of this Parliamentary Question. On each occasion, LEO Galway has determined that the Business Continuity Voucher was unsuitable for the following reasons:
- Following communication with the applicant it was determined that the scale of the business or business model complexity in relation to the eligible uses of the Business Continuity Vouchers would not warrant the level of intervention proposed to be undertaken by the 3rd party accountant stated in the application as the preferred advisor whom had completed the application forms initially
- Subsequent discussion with the applicant in fact indicated concern mostly over post Covid operations in the absence of, at that time, published advice from HSA or publication of the Return to Work Safely Protocol
- The client was advised that the most suitable support would be to avail of LEO Galway mentoring for post Covid back to work practices for both business and to review financials at that time once clarity on the businesses' post Covid business model was achieved
In the circumstances, LEO Galway, in keeping with LEO policy of offering alternative supports where possible, has offered mentoring to the business owners and I would urge them to take up this offer with the Local Enterprise Office in Galway. I am aware that this is a very popular support at this time and many businesses have benefited from this type of intervention.
Furthermore, you will be aware that in response to the COVID-19 pandemic the Government has put in place a range of supports for businesses that have been negatively impacted by COVID-19 and continues to explore every available avenue for the delivery of further supports for business which were announced in May such as:
- A restart grant of up to €10,000 for micro and small businesses based on a rates/waiver rebate from 2019;
- A three month commercial rates waiver for impacted businesses; Commercial rates are being waived for a three month period beginning on 27 March 2020 for businesses that have been forced to close due to public health requirements.
Full details on all COVID19 supports are available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/
