Written Answers Nos. 435-461
435. Deputy Ged Nash asked the Minister for Business, Enterprise and Innovation the status of her plans to develop guidance on remote working particularly relating to the health and safety obligations of employers; and if she will make a statement on the matter. [11239/20]
View answerAs Minister for Business, Enterprise and Innovation, I understand both the importance of safe working conditions as well as the opportunities presented by flexible working solutions. Last year my Department published the Remote Work in Ireland report. This research paper was dedicated to understanding the prevalence and types of remote working arrangements within the Irish workforce, the attitudes towards such arrangements, and the influencing factors for both employers and employees partaking in remote working.
A key outcome identified in the Remote Work in Ireland report was the need for official guidance for employers and employees on a variety of different topics, such as equality, health and safety, employment conditions and the right to disconnect, data protection and training.
To build on this work, I committed to the establishment of an Interdepartmental Group comprising of all relevant Departments and Agencies to align approaches and develop clear guidance on remote work for employers and employees. This Group has been formed and is currently steering the development of guidance on this topic. The Health and Safety Authority (HSA) is one of a number of organisations on this Group that are helping to inform the shape of this guidance. We will also be engaging with various stakeholder groups on this as it progresses. It is expected that the guidance will be completed by the end of 2020.
It is also important to note that, in response to the shift towards homeworking as result of COVID-19 pandemic, the HSA has created a page on its website outlining the safety, health and welfare at work requirements when temporarily working from home. This page is useful to employers in terms of outlining the specific duties they have when their employees are working from home. Equally it is useful for employees in outlining their responsibilities when working from home.
436. Deputy Éamon Ó Cuív asked the Minister for Business, Enterprise and Innovation the reason State guaranteed loans for working capital during the Covid-19 pandemic are being charged at over 4% interest when funding can be borrowed by the banks and the State at nominal interest rates; if consideration has been given to reducing these rates in the interest of stimulating and assisting business through this difficult time; the reason for the high rates of interest; and if she will make a statement on the matter. [11245/20]
View answerThe SBCI Covid-19 Working Capital Scheme [Covid-19 WCS] is offered by my Department in cooperation with the Department of Agriculture, Food and the Marine, and is supported by a counter-guarantee from the European Investment Fund [EIF] through its InnovFin SME Guarantee facility. This counter guarantee has enabled €15 million in Exchequer funding to be leveraged to provide €200 million in lending through this Scheme. This is reflective of an effort to achieve the widest reach with Exchequer funding to support businesses as they seek to respond the impacts of Covid-19 and why loan guarantee structures are a key response to the liquidity crisis.
The scheme is available 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.
The scheme is operated by the SBCI and is offered through participating finance providers. This allows the Government to leverage existing lending infrastructure, providing an efficient mechanism for making competitive lending products available to Covid-19-impacted businesses, and there are significant advantages to loan schemes run through the participating finance providers.
The interest rate of 4% under the Covid-19 WCS 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 these schemes are more accessible to businesses.
However, the operation of loan schemes of this type through these financial providers also means that there is less scope to bring the interest rates down further, as some interest must be charged by the lenders to cover overheads and capital costs if they are to continue to work with Government.
The level of capital held by Irish banks against SME loans relates to the high level of non-performing loans (NPLs) in the Irish Banking System during the financial crisis. Notwithstanding improvements in the period since then, there is still a continuing high stock of NPLs in the Irish Banking System. The resulting high levels of required capital means that banks in Ireland charge a higher interest rates than is found on average in the EU so as to be able to generate an appropriate return on equity.
Further to this, the Covid-19 WCS operates under the de minimis state aid regulations. This limits the overall volume of state funding available to individual businesses in any given three-year period. Any adjustment to the interest rate under the scheme would affect the consideration of the level of aid being provided to applicant businesses. This would impact the overall volume of funding available to applicant businesses and could impact their eligibility for other schemes.
Uptake of the scheme to date has been strong and work is under way on a significant expansion to make additional lending available under the scheme.
437. Deputy Ged Nash asked the Minister for Business, Enterprise and Innovation her plans to follow other EU member states that are refusing to grant public aid to businesses registered in tax havens and are making use of aid conditionality as an incentive for the enforcement of their fiscal rules; if her attention has been drawn to companies or their subsidiaries currently receiving State aid that are registered in tax havens; and if she will make a statement on the matter. [11256/20]
View answerIDA Ireland is authorised by my Department to provide a range of financial supports in the form of employment, capital, research and development, environmental and training grants. These grants are an important means of encouraging companies to invest in Ireland, particularly in regional locations.
Multinational firms must meet certain criteria in order to be eligible for IDA Ireland grants. In all instances where financial assistance is approved by the IDA for a client company, the Agency and the client enter into a grant agreement which is a legal and binding contract. While the content of the contract is confidential, the agreement includes conditions and milestones that the client is required to comply with before any financial assistance is provided.
Clients sign the grant agreement in full knowledge that the penalty for non-performance is a pro-rata repayment of grants. IDA Ireland revokes grants where clients have not achieved the agreed performance target or, if appropriate, in the event of a company closure.
With respect to taxation issues, I understand the Deputy is referring to an approach taken by a number of European Union (EU) Member States to link the availability of some COVID-19 supports to either the EU list of non-cooperative tax jurisdictions or their own national equivalent lists. The EU list, the rationale of which Ireland strongly supports, has already proven to be a useful tool in encouraging countries around the world to implement globally agreed tax reform measures. As regards IDA grant assistance, I have not been made aware of any companies in Ireland, which are in receipt of financial support from the Agency, that are registered in jurisdictions which are included in the EU list.
438. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation her plans to reinstate the continuity vouchers scheme; and if she will make a statement on the matter. [11279/20]
View answerThe Business Continuity Voucher scheme was launched on 26th March. The purpose of the scheme was to provide expert guidance and advice to SMEs employing up 50 people and enable business owners make informed decisions about what immediate measures and remedial actions could be taken at the outset of this crisis, to protect staff and sales and eventually help the business recover.
The scheme was a resounding success in terms of uptake due to it being an appropriate response and support to recognised business needs for that point in time. The Business Continuity Voucher provided up to €2,500 in consultancy costs, to develop short and long-term strategies to respond to the initial pandemic and to plan for the eventual recovery and reopening of the economy.
As the reopening of the economy proceeds, more and more businesses are transitioning from the planning to the implementation phase as we progress through the remaining stages of the Government Roadmap. It is in this context that the Business Continuity Voucher was phased out and is now closed to new applicants. In recognition of this new stage, the new €250m Restart Grant was introduced to assist micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures.
The LEOs will continue to work with existing applicants and recipients of Business Continuity Voucher vouchers and their subsequent business continuity plans. The awarding of vouchers under the Business Continuity Voucher scheme will naturally taper off in the coming weeks as the Local Enterprise Offices process the outstanding applications.
The Restart Grant is available to businesses with a turnover of less than €5m employing up to 50 people, which were closed or impacted by at least a 25% projected reduction in turnover to the end of June 2020. The grants will be equivalent to the rates bill of the business in 2019, or a minimum grant of €2,000, with a maximum grant of €10,000. The Online application forms can be accessed at the following website: https://dbei.gov.ie/en/Publications/Take-up-of-DBEI-COVID-19-Business-Supports.html.
439. Deputy Imelda Munster asked the Minister for Business, Enterprise and Innovation when funding will be made available to local authorities to issue restart grants; and if she will make a statement on the matter. [11280/20]
View answerOn Friday, 15 May 2020, the Government decided to establish a 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.
The funds for the Restart Grant were transferred by Enterprise Ireland to all local authorities on Wednesday 10 June and the payments are now being dispersed to applicants. As of Friday 12th June 2020, funding of €17.12m had issued to businesses under the scheme.
Applications for the Restart Grant can be made online directly to local authorities.
Further information on how to apply is available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/COVID-19-Restart-Grant-Local-Authority-Websites.html.
440. Deputy Matt Carthy asked the Minister for Business, Enterprise and Innovation the reason for the exclusion of commercially rated businesses within community and sports centres from the business restart grant scheme; her plans to provide supports to assist these businesses to reopen; and if she will make a statement on the matter. [11320/20]
View answerOn Friday, 15 May 2020 the Government announced details of the new €250m Restart Grant providing direct grant aid to micro and small businesses. The grant is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers.
To avail of the Restart Grant, applicants must be a commercial business and be in the Local Authorities’ Commercial Rates Payment System, and:
- have a turnover of less than €5m and have 50 or less employees.
- have suffered a projected 25%+ loss in revenue from 1 April 2020 to 30th June 2020.
- commit to remain open or to reopen if it was closed.
- declare the intention to retain employees that are benefitting from the Temporary Wage Subsidy Scheme (TWSS).
The primary objective, therefore, is to get funding into small businesses that:
- Are reliant solely on local trading income;
- Are financially independent from any group structure;
- Have suffered significant financial losses;
- Have had to bear ongoing fixed costs or faced costs associated with re-opening the business;
- Provide local paid employment.
In that context, sporting and community organisations are not eligible because they are not primarily commercial organisations and have sources of income other than commercial sales for example, membership fees.
The Restart Grant support is just one part of the wider €12bn package of supports for commercial firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help those businesses to continue trading and to maintain employment.
For a full list of supports for business please see https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
In relation to support for community centres, my colleagues Michael Ring TD, Minister for Rural and Community Development and Seán Canney TD, Minister of State with responsibility for Community Development, on Friday, 8th May announced the launch of a €40 million package of supports for Community and Voluntary Organisations, Charities and Social Enterprises. The package consists of a €35 million ‘COVID-19 Stability Fund’ which will provide a level of support to qualifying organisations who are most in need and have seen their trading and/or fund-raising income drop significantly during the crisis.
441. Deputy Matt Carthy asked the Minister for Business, Enterprise and Innovation if she will provide details of the total number of applications received to date in the Covid-19 business loan scheme administered by Microfinance Ireland; the number of applications which have been made by businesses in the agrifood sector; the number of same that have been approved and refused, respectively; and if she will make a statement on the matter. [11321/20]
View answerThe Covid-19 Loan, available from Microfinance Ireland (MFI), was introduced as a support to microenterprises to help them access funding arising from the Covid-19 crisis.
These loans are available for eligible microenterprises responding to Covid-19-related difficulties, the negative impact of which must be a minimum of 15% of actual or projected income or profit. Loans up to €50,000 are available with terms that 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.
MFI provides vital support to microenterprises by filling the lending gap in the market by lending to business that cannot obtain loans from other commercial lenders. It lends to business that do not meet the conventional risk criteria applied by commercial lenders and applies interest rate charges for its lending which are not reflective of its credit risk.
Standard loans from Microfinance Ireland have interest rates of between 6.8% and 7.8%. Given the cost burden to businesses even with these subsidised rates of interest I decided to apply a substantial reduction in the interest rate to 4.5% on the Covid-19 loans provided by MFI. This reduced rate is available to all micro-enterprises where the application is made through the Local Enterprise Network or referred by a bank or Local Development Committees. The new rate for direct applications to MFI is reduced to 5.5%.
A table of the supports that are available to assist businesses address the challenges posed by the COVID -19 crisis, together with details of uptake of such supports, is available on the Department's website, https://dbei.gov.ie/en/Publications/Take-up-of-DBEI-COVID-19-Business-Supports.html. This list is updated every week in consultation with Business Units with the updated table published on the Department's website by lunchtime on Mondays.
There were 103 applications received from the agrifood sector, of which 19 were refused and 84 were approved for a value of €2,224,833.
I can assure the Deputy that I continue to work with my colleagues across Government to examine further supports to assist businesses impacted by Covid-19.
442. Deputy Matt Carthy asked the Minister for Business, Enterprise and Innovation the number of Health and Safety Authority inspections that have been carried out at meat processing plants in each month of 2020, in tabular form; and if she will make a statement on the matter. [11322/20]
View answer443. Deputy Matt Carthy asked the Minister for Business, Enterprise and Innovation the number of complaints received by the Health and Safety Authority regarding meat processing plants and the issue of compliance with Covid-19 safety measures in the workplace; the number of inspections which have been carried out following these complaints; and if she will make a statement on the matter. [11323/20]
View answerI propose to take Questions Nos. 442 and 443 together.
The national Return to Work Safely Protocol can be used by all workplaces to adapt their workplace procedures and practices to comply fully with the COVID-19 related public health protection measures identified as necessary by the HSE and the Department of Health. It is operating in parallel with existing workplace health and safety statutory requirements. The Protocol sets out in very clear terms for employers and workers in all business sectors the steps that they must take both before a workplace reopens and on an ongoing basis.
The Health and Safety Authority is the lead agency in monitoring adherence to the national Return to Work Safely Protocol.
In addition, the Health and Safety Authority is a member of the National Outbreak Control Team (NOTC). The NOCT is led by the HSE and includes membership from professionals in public health, environmental health, animal health as well as the Health and Safety Authority, in relation to occupational health and safety. The NOCT, along with local Outbreak Control Teams, is in place to address outbreaks of COVID-19 and to recommend steps and measures to ensure that outbreaks can be managed and brought under control as quickly as possible. COVID-19 is first and foremost a public health issue so the first step must always be ensuring that measures are in place to manage and prevent outbreaks not just for the workers involved but also for the wider community where such workers live.
The total number of Health and Safety Authority inspections that have been carried out at meat processing plants in 2020 is 30 and this covers both meat processing and poultry processing plants. The monthly breakdown is as follows:
|
Month |
Total. No. of meat plants inspected |
|
January 2020 |
0 |
|
February 2020 |
1 |
|
March 2020 |
1 |
|
April 2020 |
0 |
|
May 2020 |
11 |
|
June (to 12 June 2020) |
17 |
I have been informed by the Health and Safety Authority that their Workplace Contact Unit was contacted on 22 occasions in relation to COVID-19 concerns in connection with 12 meat-processing facilities. All 12 of the meat plants have been inspected by close of business on 12 June last.
It is worth noting that the Department of Agriculture, Food and the Marine, who have an ongoing role in meat processing plants, is also a member of the National Outbreak Control Team and they too are checking compliance with the Return to Work Safely Protocol in such plants.
445. Deputy Matt Carthy asked the Minister for Business, Enterprise and Innovation further to her contribution in Dáil Éireann on 21 May 2020 regarding the number of HSA inspections that had taken place at meat plants, the reason this information was subsequently released to the media when it was considered confidential; if she considers this to be a breach of confidentiality; the actions that she plans to take in this regard; and if she will make a statement on the matter. [11325/20]
View answerIn my contribution to the Dáil on 21 May last I pointed out that, at that stage, the Health and Safety Authority had carried out over 240 on-site compliance inspections. I also said that while the Health and Safety Authority does not give details of individual inspections, or details of individual employers, as such information is deemed confidential, I was able to confirm that meat processing plants were included in these numbers.
As the Health and Safety Authority has continued its programme of inspections to check adherence to the Return to Work Safely Protocol across all sectors of the economy, general, high-level information on the number of inspections has been made available to the Dáil. The Health and Safety Authority has itself made such information available in response to media queries. However, details of individual businesses inspected, or due to be inspected, remain confidential to the Authority.
446. Deputy Matt Carthy asked the Minister for Business, Enterprise and Innovation if she has examined reasons for the proposed closure of a business (details supplied) in County Monaghan; if her Department can assist in addressing the causes for closure in order to protect the jobs there; and if she will make a statement on the matter. [11326/20]
View answerThe announcement that there will be job losses at BD Foods is extremely disappointing for the hard-working employees of the company. Without a doubt, it is a blow for the local area.
I have spoken with the Managing Director of Henderson Foodservice, the parent company of BD Foods. He confirmed that The Henderson Group is proposing a consolidation of a number of its businesses, including BD Foods in Glaslough and the Foodco distribution depots in Ashbourne, Co Meath and Lisburn, Co. Antrim. The businesses will now become part of the Henderson Foodservice business in Mallusk, which will unfortunately result in job losses.
The Managing Director made it clear that this was an extremely difficult decision for the owners to make and that it is no reflection on the staff. However, COVID-19 is having a severe impact on the business and they felt that they were left with no other option. He confirmed that of the 48 jobs based in Glaslough, 36 are at risk. The remaining 12 jobs make up the bulk of the Group’s sales team. These jobs will be retained and the staff will continue in their roles whilst remaining resident in County Monaghan. Of the 36 jobs that are at risk, as many as possible will be redeployed to the logistics end of the business. The company is currently looking at alternative logistics supply arrangements to facilitate this transition. In terms of the jobs that will ultimately be lost, the company has committed to working closely with the State services to help those affected to find alternative employment.
Of course, my immediate concern is for the workers and families directly impacted by this announcement. It is especially difficult that this happened during the COVID-19 pandemic.
The Government will make every State support available to these employees. The Minister for Employment Affairs and Social Protection is aware of the situation and we will be collectively, across Government, doing our utmost to help these workers transition and find new employment opportunities in the coming period. The local Intreo service hosted a support webinar for employees of BD Foods on 10 June 2020. All of the relevant stakeholders attended including representatives of the Money Advice and Budgeting Service, Cavan and Monaghan Education and Training Board, Local Enterprise Office and Cross Border EURES. They are offering comprehensive advice and support to those affected, and are available to answer any questions workers may have. I will continue to monitor the situation closely and keep the management and workforce updated on developments.
I understand that DEASP contacted the company again on 17 June 2020, to enquire as to whether management and staff had viewed the webinar and to re-iterate that the Department and other State agencies are here to support the company and the workforce in every way possible at this difficult time. The Department sent on copies of the presentations and informed them that they could provide a link to the recorded Webinar to share with staff.
If the company is not in a position to facilitate onsite viewing of the Information Webinar, DEASP will swiftly make alternative arrangements to ensure that all of the people affected are afforded the opportunity to view it outside of normal working hours.
Finally, I remain in close contact with Government colleagues on the issue, and we are working with all relevant State agencies to minimise the impact. The first priority is to ensure that the affected employees quickly receive access to all income supports that may be available to them. In parallel, they will be given every support to help them access new job opportunities, or where required, to access education and training and development options.
447. Deputy John Lahart asked the Minister for Business, Enterprise and Innovation the number of businesses that have drawn down funds under schemes (details supplied); the steps she has taken to ensure companies here are aware of other schemes available from the EU; and if she will make a statement on the matter. [11345/20]
View answerThe Deputy will be aware that the EU Commission has developed a Temporary Framework for State aid measures to allow member states certain flexibilities to put in place short term, targeted responses to the impact of COVID-19 on their economies. Ireland’s Sustaining Enterprise Fund Scheme is available until the end of the year which is a timeframe set within the EU Commission’s Temporary Framework. The nature of the business supports under this framework is a matter for individual member states and is dependent upon the different size of economies and targeted sectors of the economies.
There is a limited amount of resources available and a broad range of businesses with different needs for support. I am looking to achieve the widest reach within the available Exchequer funding as urgently and as quickly as possible. The loan guarantee scheme structures, for example, are a key response to the liquidity crisis, as they allow Ireland to leverage Exchequer monies to provide much larger funds to businesses, in particular where it is feasible to access counter guarantees through the European Investment Bank. Supports to businesses, including grants, provided through the Exchequer funding should support viable business across all sectors and across the variety of needs.
The Sustaining Enterprise Fund is just one part of the wider €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
The €250m Restart Grant gives 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 grants are equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.
Full details on all of the COVID-19 supports for business, that are administered by the enterprise agencies and other bodies on behalf of my Department, are available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
Details of the uptake of these supports are updated every week on my Department’s website at https://dbei.gov.ie/en/Publications/Publication-files/Take-up-of-DBEI-COVID-19-Business-Supports.pdf.
448. Deputy John Lahart asked the Minister for Business, Enterprise and Innovation the reason Ireland has had business schemes approved that take the form of repayable advances and has not sought grant aided schemes to date from the EU in view of the fact businesses are struggling. [11346/20]
View answerThe Deputy will be aware that the EU's temporary state aid framework allows EU member states to put in place short term, targeted responses to the impact of COVID-19 on their economies. The nature of the business supports under this framework is a matter for individual member states and is dependent upon the different size of economies and targeted sectors of the economies.
The €180 million Sustaining Enterprise Fund which Ireland successfully negotiated with the EU Commission under the temporary framework, is just one part of the wider €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, restart grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
The nature of the business supports under the temporary framework is a matter for individual member states and is dependent upon the different size of economies and targeted sectors of the economies.
There is a limited amount of resources available and a broad range of businesses with different needs for support. I am looking to achieve the widest reach within the available Exchequer funding as urgently and as quickly as possible. The loan guarantee scheme structures, for example, are a key response to the liquidity crisis, as they allow Ireland to leverage Exchequer monies to provide much larger funds to businesses, in particular where it is feasible to access counter guarantees through the European Investment Bank. Supports to businesses, including grants, provided through the Exchequer funding should support viable business across all sectors and across the variety of needs.
My Department, working with its agencies, are continually reviewing the situation and I am informed that Enterprise Ireland is working with SMEs client companies to support the stabilisation of their business so that they can undertake a developmental programme focused on recovery and growth. To support companies the agency has:
- Developed and launched a suite of new funding supports utilising the additional flexibility permitted under the Sustaining Enterprise Fund.
- Set up a Business Response Hub to provide information to companies on what supports are available to assist with their specific needs. To date the agency has supported many companies through the Hub.
As a first step, SMEs need to stabilise their business with key elements including business planning and accessing liquidity. Once a company has a financial and business continuity plan, Enterprise Ireland can provide funding for companies who have been impacted by COVID- 19, either through a reduction in turnover/profit or a significant increase in costs. The purpose of this funding is to enable the company to stabilise and implement a business sustainment plan, leading to a return to viability and contributing to the recovery of the Irish economy. New supports introduced to support this include:
Planning Supports
- Lean Business Continuity Support: This €2.5k grant supports companies to access training or advisory services related to crisis management, sustaining operations, moving to e-business/online and planning for resilience post crisis. Reflecting the practical and immediate nature of this support, company interest and demand has been strong.
- COVID-19 Business Financial Planning Grant: This grant of up to €5k provides 100 per cent funding for companies to access a financial consultant to prepare a financial plan to assist companies:
- understand their immediate financial position, secure the finance required to survive and provide a framework to sustain the business; and
- ensure they have a framework to identify and manage costs and gaps in funding.
- This is a critical support for a company to strengthen their position to identify funding needs and access required funding to implement their business plan.
- Liquidity Support
- The agency’s liquidity and medium-term financial supports are being delivered under the Sustaining Enterprise Fund. Support of up to €800,000 can be provided to companies, with different levels of support and funding instruments available, which are targeted at companies at different stages of development and growth (e.g. established companies, start-ups and small enterprises).
- The agency is actively working with companies to prepare applications for funding under the Sustaining Enterprise Fund.
The €250m Restart Grant which is also an approved Scheme under the EU’s Temporary Framework for State aid, in fact gives direct non-repayable 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 grants are equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.
Indigenous Irish companies are the backbone of the economy and I can assure the Deputy that the officials in my Department are working with all our agencies to monitor the needs of sectors and companies and provide new supports to meet changing company needs, as required.
For further information and regular updates as they develop are available on the Department’s website at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
449. Deputy John Lahart asked the Minister for Business, Enterprise and Innovation the steps she has taken to ensure businesses can access the proposed European Recovery and Resilience Facility which offers opportunities to Ireland with supports available of over €300 billion in grants and up to €250 billion in loans; and the preparations she has made to ensure that businesses can access funds and loans. [11347/20]
View answerI can confirm to the Deputy that I, my Department and the wider Government will be diligently working with the European Commission to ensure Irish businesses will have access to the new Recovery and Resilience Facility. It will provide large-scale financial support to reforms and investments undertaken in every Member State including Ireland, with the aims of mitigating the economic and social impact of the coronavirus pandemic. The Facility also has the aim of making the EU economies more sustainable, resilient and better prepared for the challenges posed by the green and digital transitions. I will be working to ensure Ireland is at the forefront of these changes to the business environment.
The fund will assist Ireland in addressing the challenges identified in the European Semester, in areas such as competitiveness, productivity, environmental sustainability, education and skills, health, employment, and economic, social and territorial cohesion. It is important to note the focus on the green and digital transition agendas which will require considerable focus by the Government to assist Irish businesses, particularly SMEs. The Facility is focused on longer term reforms and will help Irish businesses to create and sustain their firms and their employees. It will be a mechanism for the businesses of the Member States of the European Union to strengthen their position in the global market.
The Facility will work in tandem with the range of Commission measures already developed in response to the current coronavirus pandemic such as amendment to the cohesion policy regulation, the Coronavirus Response Investment Initiatives and SURE. I will be working with my Government colleagues to make sure Ireland is best placed to take advantage of these considerable funds and Irish businesses will reap the reward of this engagement.
450. Deputy John Lahart asked the Minister for Business, Enterprise and Innovation the efforts that have been made to draw down and enable businesses to access the Next Generation EU fund of €750 billion; and if she will make a statement on the matter. [11348/20]
View answerThe Next Generation EU fund is a new €750 billion recovery instrument that will be made available to member states in the form of loans and grants. This recovery instrument will be embedded into a longer-term EU budget. It is expected to take the rest of 2020 to put the recovery and resilience facility in place, as it will have to be agreed in the European Council, the revised Multiannual Financial Framework then adopted by the European Parliament and finally the whole package ratified by the national parliaments in line with their constitutional requirements.
Ireland will benefit directly from the Next Generation EU instrument with grants worth almost €2 billion. €1.209 billion will come from the new Recovery and Resilience Facility, which will offer financial support for investments and reforms, including in relation to the green and digital transitions and the resilience of national economies, linking these to the EU priorities.
At present, Next Generation EU is a proposal. However, once it is agreed I will take all appropriate steps to enable businesses to access funding.
451. Deputy John Lahart asked the Minister for Business, Enterprise and Innovation her plans for cinema opening; and if she will make a statement on the matter. [11352/20]
View answerIn accordance with the Government’s Roadmap for Reopening Society and Business announced on the 5th June, there are now two remaining phases instead of three, with Phase 3 starting on the 29th of June, and Phase 4 on the 20th of July. Further work is being carried out in the coming days and weeks to determine which actions will take place in each phase. Updates to the roadmap can be found at www.gov.ie. Organisations should review the Roadmap and the updates carefully and carry out a detailed assessment of their activities with regard to the continuing public health measures. 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 organisations 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, employees and artists the steps that they must take firstly before a workplace reopens, and then while it continues to operate. Further guidance is available from the Health and Safety Authority which is the lead agency in overseeing compliance with the National Return to Work Safely Protocol in the workplace. The HSA Helpline can be contacted at 1890 289 389 or wcu@hsa.ie.
With regards to the reopening of theatres, the Theatre Forum has published guidelines for the reopening of arts centres and these have been welcomed by the Arts Council. These guidelines which can be accessed here www.theatreforum.ie/assets/uploads/Re-opening-Arts-Centres_Doc-v.1.1.pdf should assist arts centres and other cultural facilities throughout the country to consider how they might prepare to re-open under totally changed circumstances. The guidelines recognise arts centres as places of work for artists, and as places for audiences to participate and engage with the arts.
The Arts Council has established a short-term Advisory Group to identify ways to address impacts of the Covid-19 Crisis on the sector. This group brings together a number of leading voices from the arts and other sectors and will report to the Arts Council on measures to sustain the arts sector through the current challenging period including the challenges posed by reopening. I understand that the Group will complete their work shortly and I look forward to receiving their report.
Fáilte Ireland recently published guidelines for the tourism sector in line with the Government’s Roadmap and which were prepared in consultation with the tourism industry and relevant authorities. These guidelines are intended to assist tourism businesses including some theatres to meet requirements in line with the Return to Work Safely protocol and based on the latest health advice. The report can be accessed at this link. https://covid19.failteireland.ie/business-supports/business-reopening/activity-providers/guidelines-for-reopening/.
452. Deputy James Browne asked the Minister for Business, Enterprise and Innovation when funds will be released for successful restart grant applicants; and if she will make a statement on the matter. [11357/20]
View answerOn Friday, 15 May 2020, the Government decided to establish a new €250m Restart Grant providing direct grant aid to micro and small businesses to help them with the costs associated with reopening and reemploying workers following COVID-19 closures.
The funds for the Restart Grant were transferred by Enterprise Ireland to all local authorities on Wednesday 10 June and the payments are now being dispersed to applicants. As of Friday 12th June 2020, funding of €17.12m had issued to businesses under the scheme.
Applications for the Restart Grant can be made online directly to local authorities.
Further information on how to apply is available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/COVID-19-Restart-Grant-Local-Authority-Websites.html.
453. Deputy Steven Matthews asked the Minister for Business, Enterprise and Innovation if she will investigate a situation that has arisen with regard to microenterprises that are unable to access the restart grant in view of the fact they do not operate in a rateable premises; and if she is considering other liquidity grants for this type of business in order to assist them with reopening. [11437/20]
View answerThe Restart grant is designed to help small and micro commercial enterprises to re-launch their business and reconnect with their employees and customers. The grant is being paid using the Local Authorities Commercial Rates System as the most efficient means of delivery. The grant is the amount of the 2019 rates assessment subject to a minimum grant of €2,000 and a maximum of €10,000.
To qualify for a grant, an eligible business:
- Must have a turnover of less than €5m and have 50 or less employees.
- Must have suffered a projected 25%+ loss in revenue from 1 April 2020 to 30th June 2020.
- Must commit to remain open or to reopen if it was closed.
- Must also declare the intention to retain employees that are benefitting from the Temporary Wage Subsidy Scheme (TWSS).
The aim is to get these businesses up and running, trading as normally as possible so that they can retain employees who will no longer need a temporary wage subsidy or be able to take back workers who are on Pandemic Unemployment Payment.
The Restart Grant support is just one part of the wider €12bn package of supports for firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
This package is a significant step-up in the supports available for all businesses in all sectors at this very difficult time. The measures have been developed to meet the varying needs of Irish enterprise and they are very specifically targeted by size, sector and need and are targeted at vulnerable but viable companies.
The unprecedented circumstances of the COVID19 global pandemic has resulted in a swiftly evolving landscape for enterprises. The Government will continue to use all available tools at its disposal to support businesses and ensure their survival. In that context, I will keep the supports provided under review and continue to support enterprises as they work through the challenges facing them.
For a full list of supports for business please see https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
454. Deputy Christopher O'Sullivan asked the Minister for Business, Enterprise and Innovation if she has considered a grant for hotels and accommodation providers to purchase PPE equipment to make their premises safer for customers during the reopening phase; and if she will make a statement on the matter. [11447/20]
View answerIn 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 Restart Grant provides direct grant aid to businesses employing up to 50 people, including in the hospitality sector, for the purposes of restarting and investing in necessary PPE and meeting other costs. The grant is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers. Funding in respect to the Restart Grant is provided by my Department and is administered by the 31 Local Authorities.
Any further targeted supports specifically aimed at the tourism sector will be initiated and led by my colleague the Minister for Transport, Tourism and Sport who has recently formed a special Tourism Recovery Taskforce dedicated to spearheading economic recovery for the tourism sector. For further information see https://www.gov.ie/en/press-release/0e6570-ministers-ross-and-griffin-launch-tourism-recovery-taskforce/.
The full range of Local Enterprise Office (LEO) and Údarás na Gaeltachta 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. My Department is encouraging any affected business to take advantage of the LEO COVID-19 supports. The situation is still developing from day to day and the Government continues to respond to these developments in an effort to protect and support Irish businesses. The LEOs will continue to work with existing applicants and recipients of Business Continuity Vouchers (BCV) and their subsequent business continuity plans. The awarding of vouchers under the BCV scheme will naturally taper off in the coming weeks as the Local Enterprise Offices process the outstanding applications.
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.
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 in the hospitality sector. It will also have interest rates below current market rates. The implementation of this Scheme will require primary legislation, the drafting of which has been approved by Government, and my officials are working with the Office of the Parliamentary counsel on this drafting work.
Work is also under way to extend existing schemes in place to support access to finance for businesses to ensure that they can continue to offer support to businesses as they look towards reopening. These include the Covid-19 Working Capital Scheme and the Future Growth Loan Scheme.
The Covid-19 Working Capital Scheme makes lending available to eligible businesses that have been negatively impacted by issues arising from the outbreak of Covid-19 in Ireland as they seek to innovate, change or adapt in response to this disruption. Loans under this scheme are for up to three years and range from €25,000 up to €1.5 million (first €500,000 unsecured) with a maximum interest rate of 4%.
The Future Growth Loan Scheme provides long term loans of 8-10 years to businesses at low interest rates. There has been significant demand for the scheme and the initial funding has been almost fully subscribed. This expansion will further support the needs of SMEs, including primary producers, impacted by COVID-19. This new funding will be released in tranches. The long-term nature of these loans is particularly important for businesses as they plan for recovery. Work is under way to deliver this funding as quickly as possible.
InterTradeIreland launched two new business supports, these are currently being targeted at companies who are already on one of their programs.
E-merge enables companies to engage consultancy support & advice (to the value of £2500/€2800) to help them develop online sales & ecommerce solutions.
Emergency Business Solutions: Fully funded consultancy support & advice (to the value of £2000/€2250) to address key business challenges in areas such as emergency cashflow, loan applications and HR/People.
The COVID-19 pandemic has fundamentally changed the Irish and global economy. COVID-19 has emerged as a sudden and profound disruptor. Both globally and nationally it is unclear how deep the impact will be or how long it will last. The COVID-19 pandemic is presenting significant challenges for SMEs, the impact of which varies by sector and region.
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 and will continue to keep the supports provided for enterprise under review.
455. Deputy Christopher O'Sullivan asked the Minister for Business, Enterprise and Innovation if she will provide supports for the hotel industry to pay towards the extra staffing costs required to maintain hygiene and social distancing standards during the reopening phase of the Covid-19 pandemic; and if she will make a statement on the matter. [11448/20]
View answerIn 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 Restart Grant provides direct grant aid to businesses employing up to 50 people, including in the hospitality sector, for the purposes of restarting and investing in necessary PPE and meeting other associated costs of reopening. The grant is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers. Funding in respect to the Restart Grant is provided by my Department and is administered by the 31 Local Authorities. The details of the online application form can be accessed by businesses in the hospitality sector at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/COVID-19-Restart-Grant-Local-Authority-Websites.html.
Any further targeted supports specifically aimed at the tourism sector will be initiated and led by my colleague the Minister for Transport, Tourism and Sport who has recently formed a special Tourism Recovery Taskforce dedicated to spearheading economic recovery for the tourism sector. For further information see https://www.gov.ie/en/press-release/0e6570-ministers-ross-and-griffin-launch-tourism-recovery-taskforce/.
The full range of Local Enterprise Office (LEO) and Údarás na Gaeltachta 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. My Department is encouraging any affected business to take advantage of the LEO COVID-19 supports. The situation is still developing from day to day and the Government continues to respond to these developments in an effort to protect and support Irish businesses. The LEOs will continue to work with existing applicants and recipients of Business Continuity Vouchers (BCV) and their subsequent business continuity plans. The awarding of vouchers under the BCV scheme will naturally taper off in the coming weeks as the Local Enterprise Offices process the outstanding applications.
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.
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 in the hospitality sector. It will also have interest rates below current market rates. The implementation of this Scheme will require primary legislation, the drafting of which has been approved by Government, and my officials are working with the Office of the Parliamentary counsel on this drafting work.
Work is also under way to extend existing schemes in place to support access to finance for businesses to ensure that they can continue to offer support to businesses as they look towards reopening. These include the Covid-19 Working Capital Scheme and the Future Growth Loan Scheme.
The Covid-19 Working Capital Scheme makes lending available to eligible businesses that have been negatively impacted by issues arising from the outbreak of Covid-19 in Ireland as they seek to innovate, change or adapt in response to this disruption. Loans under this scheme are for up to three years and range from €25,000 up to €1.5 million (first €500,000 unsecured) with a maximum interest rate of 4%.
Future Growth Loan Scheme provides long term loans of 8-10 years to businesses at low interest rates. There has been significant demand for the scheme and the initial funding has been almost fully subscribed. This expansion will further support the needs of SMEs, including primary producers, impacted by COVID-19. This new funding will be released in tranches. The long-term nature of these loans is particularly important for businesses as they plan for recovery. Work is under way to deliver this funding as quickly as possible.
InterTradeIreland launched two new business supports, these are currently being targeted at companies who are already on one of their programs.
E-merge enables companies to engage consultancy support & advice (to the value of £2500/€2800) to help them develop online sales & ecommerce solutions.
Emergency Business Solutions: Fully funded consultancy support & advice (to the value of £2000/€2250) to address key business challenges in areas such as emergency cashflow, loan applications and HR/People.
The COVID-19 pandemic has fundamentally changed the Irish and global economy. COVID-19 has emerged as a sudden and profound disruptor. Both globally and nationally it is unclear how deep the impact will be or how long it will last. The COVID-19 pandemic is presenting significant challenges for SMEs, the impact of which varies by sector and region.
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 and will continue to keep the supports provided for enterprise under review.
456. Deputy Dessie Ellis asked the Minister for Business, Enterprise and Innovation her plans for reopening open air markets such as those held in Fairyhouse, Ratoath, County Dublin, and Liberty Market, Dublin 8; and if she will make a statement on the matter. [11459/20]
View answerUnder the reconfiguration of the Government’s Roadmap for Reopening Society and Business announced on the 5th June, there are now just two remaining phases instead of three, with Phase 3 starting on the 29th of June, and Phase 4 on the 20th of July. Further work will be carried out in the coming days and weeks to determine which actions will take place in each phase. Updates to the roadmap can be found at www.gov.ie.
The Roadmap is a living document and Government has demonstrated great flexibility in its decision to accelerate the phases as set out in the original Roadmap.
The input and advice of the National Public Health Emergency Team (NPHET) informed the Government’s decision to proceed with Phase 2 and to accelerate elements of the Roadmap. The Government also had regard to a paper which was developed by my Department in conjunction with the Department of Finance and the Department of Public Expenditure and Reform to provide an updated assessment of the economic impact of the COVID-19 pandemic and to identify, from an economic perspective, some priority issues for re-opening of economic activity under Phase 2. This paper, “Economic Considerations for Reinstating Economic Activity - Update for Phase 2”, is available on my Department’s website at https://dbei.gov.ie/en/Publications/Publication-files/Economic-Considerations-for-Reinstating-Economic-Activity-Update-for-Phase-2.pdf.
On 8 June the Minister for Health, Simon Harris T.D., signed SI No.206 of 2020, Health Act 1947 (Section 31A – Temporary Restrictions)(COVID-19)(No. 2) Regulations. These Regulations, which shall remain in operation until 29 June, provide for the unwinding of certain restrictions, including the reopening of retail outlets and extending the distance that may be travelled for specified purposes. The Regulations also provide for continued restrictions for some businesses or services and for offences, including in relation to events. Businesses should carefully review these Regulations.
Where a business is not specifically listed, businesses should review the Roadmap and the updates 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 employees 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 National Return to Work Safely 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/.
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 under Phases 1 and 2 and I will work within Government to secure further details and clarity for businesses as we progress through the remaining phases in the Roadmap.
It is important to note that all decisions taken by Government on the timing of any lifting of restrictions as envisaged in the next two phases of the Roadmap will be informed by the public health advice at the time.
457. Deputy Norma Foley asked the Minister for Business, Enterprise and Innovation if she will amend the restart grant to include a cohort of businesses and groups that are currently excluded, for example, bed and breakfasts, small bus operators and community centres; and if not, if she will consider introducing a new grant to meet the restart needs of those excluded. [11507/20]
View answerThe Restart Grant support is just one part of the wider €12bn package of supports for commercial 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 those businesses to continue trading and to maintain employment.
To avail of the Restart Grant, applicants must be a commercial business and be in the Local Authorities’ Commercial Rates Payment System, and:
- have a turnover of less than €5m and have 50 or less employees.
- have suffered a projected 25%+ loss in revenue from 1 April 2020 to 30th June 2020.
- commit to remain open or to reopen if it was closed.
- declare the intention to retain employees that are benefitting from the Temporary Wage Subsidy Scheme (TWSS).
The primary objective, therefore, is to get funding into small businesses that:
- Are reliant solely on local trading income;
- Are financially independent from any group structure;
- Have suffered significant financial losses;
- Have had to bear ongoing fixed costs or faced costs associated with re-opening the business;
- Provide local paid employment.
In that context, sporting and community organisations are not eligible because they are not primarily commercial organisations and have sources of income other than commercial sales for example, membership fees.
On Friday 8th May, my colleagues Michael Ring TD, Minister for Rural and Community Development and Seán Canney TD, Minister of State with responsibility for Community Development, announced the launch of a €40 million package of supports for Community and Voluntary Organisations, Charities and Social Enterprises. The package includes a €35 million ‘COVID-19 Stability Fund’ which will provide a level of support to qualifying organisations who are most in need and have seen their trading and/or fundraising income drop significantly during the crisis.
Regarding any further targeted supports specifically aimed at the tourism sector, my colleague the Minister for Transport, Tourism and Sport has formed a dedicated Tourism Recovery Taskforce, made up of leaders from varying sections of the industry, who will work together to deal with the many challenges ahead in a dynamic and innovative manner. It has been tasked with identifying measures required to enable Irish tourism to recover from the devastating effects of Covid-19.
For a full list of supports for business please see https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
458. Deputy Martin Heydon asked the Minister for Business, Enterprise and Innovation the supports in place for businesses in the events industry which are facing an uncertain future; and if she will make a statement on the matter. [11511/20]
View answerI and my Department officials are continuously working and responding to business needs, ensuring sufficient and tangible supports are being put into place as quickly as possible to assist all our SMEs across the country, in all sectors, including those businesses who operate in the events industry.
Supporting the promotion and sustainability of our SMEs has always been a high priority of mine. The current crisis reminds us of the importance of this objective amid the challenging circumstances which have been thrust upon our small business sector by the COVID-19 pandemic.
In order to assist businesses to address the challenges posed by COVID-19, the Government has put in place a comprehensive suite of supports which can be accessed by firms of all sizes, and across all industries, including those in the events industry, 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 the weeks and months ahead. For a full list of supports for business please see my Department's website at www.dbei.gov.ie.
In addition, my Department is currently operating a Business Support Call Centre to advise on the Government supports available to businesses and enterprises that are affected by COVID-19. The number to contact is 01 631 2002.
Please be assured that my Department and I will continue to engage extensively across Government and with business representative bodies and all other relevant stakeholders, with a view to ensuring an appropriate response to the COVID-19 pandemic that will protect and support Irish businesses across all sectors.
The Deputy will also be aware that my colleague, the Minister for Transport, Tourism and Sport, has responsibility for initiatives specific to the tourism sector and events and festivals, which of course is of significant importance to the events industry. In addition, the Minister for Transport, Tourism and Sport has established a Tourism Recovery Taskforce to examine bespoke supports for that sector.
459. Deputy Martin Heydon asked the Minister for Business, Enterprise and Innovation the analysis carried out to determine the level of supports that will be needed in the coming months for small and medium businesses; and if she will make a statement on the matter. [11512/20]
View answerI can assure the Deputy I am continually reviewing the range of supports needed by SMEs and micro enterprises in particular as the Covid-19 crisis evolves. The economic analysis undertaken by my Department has highlighted the challenges for SMEs arising from COVID-19 which have been immediate and heavily impactful on certain sectors. As highlighted in my two published reports, Economic Considerations for Reinstating Economic Activity Phase 1 and Phase 2, GDP is projected to decline by over 10% in 2020. The heightened risk of a hard Brexit at the end of 2020 could exacerbate the difficulties facing the economy and recovery prospects.
SMEs across all sectors are being impacted, with for example the Accommodation and Food sector continuing to be the hardest hit so far with over 90% of those in employment now receiving either the Pandemic Unemployment Payment (PUP) or the Temporary Wage Subsidy Scheme (TWSS). The Wholesale and Retail sector, despite large elements continuing to trade, has some 58% of employees either on the PUP or TWSS. Personal services, construction and administrative and support services have also been heavily impacted. The manufacturing sector, FDI and globally traded sectors have had less severe impacts to date. However, it is too early yet to assess the impact on global trade and, given the important of these sectors, we will continue to monitor and keep under close review.
The impact of COVID-19 on the public finances has been significant with the total value of measures introduced to date (including expenditure and liquidity) standing at over €13 billion. Around 40% of those previously in employment are still on COVID-19 related income support payments.
In responding to the challenges presented by the COVID-19 crisis, I and my Department has been actively engaged across all sectors and working closely with other government departments and a wide range of stakeholders in recent months. I chair the Enterprise Forum which comprises the main SME representative bodies including ISME, Small Firms Association and Chambers Ireland and will continue to review what new initiatives are required.
I have tailored and developed a suite of supports to help businesses impacted by COVID-19 and minimise the extent of the economic damage caused by the pandemic. I have worked collectively with my Offices, Agencies and other government bodies to achieve maximum impact. This comprehensive suite of supports involves a mix of grants, vouchers, low-cost loans and credit guarantees, all of which, when combined with other supports, such as write-off of commercial rates, wage subsidies and deferred tax liabilities, will help to improve cash flow for businesses and help them to restart, reconnect and rehire staff. The details of all schemes are set out in our Guide to Supports for Businesses, which is available on our website.
I have also developed and put in place extensive information supports from an early stage in my Department. On 13th March I established a dedicated COVID-19 Business Call Centre to assist SMEs with information on the various new and existing schemes and financial supports available. A new team, drawn from across the Department, was set up with a dedicated helpline phone number and email address. The team, all working remotely has now dealt with in excess of 5,000 calls to date across a wide range of issues. This Unit is also dealing with COVID-19 related representations and, in the week ending 5th June, have received a total of 803 reps, with 764 finalised. At an early stage, we also wrote to 230,000 companies advising them of the range of business supports on offer to assist firms in their COVID-19 response. We also published extensive information in our Guide to Supports for Businesses. This is a living document detailing the range of COVID-19 business supports and other Government supports available and we will continue to update the guide as we introduce new measures.
460. Deputy Martin Heydon asked the Minister for Business, Enterprise and Innovation her plans for further supports for small and medium-sized businesses facing challenges in the months ahead; and if she will make a statement on the matter. [11514/20]
View answerIn 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 examine additional measures needed for all enterprises, SMEs and micro-enterprises as they work through the challenges facing them, including through any additional mechanisms allowable through the EU’s state aid framework.
In terms of forthcoming schemes for SMEs, I would highlight in particular that the 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. It will also have interest rates below current market rates. The implementation of this Scheme will require primary legislation, the drafting of which has been approved by Government, and my officials are working with the Office of the Parliamentary counsel on this drafting work.
Work is also under way to extend existing schemes in place to support access to finance for businesses to ensure that they can continue to offer support to businesses as they look towards reopening. These include the Covid-19 Working Capital Scheme and the Future Growth Loan Scheme.
The Covid-19 Working Capital Scheme makes lending available to eligible businesses that have been negatively impacted by issues arising from the outbreak of Covid-19 in Ireland as they seek to innovate, change or adapt in response to this disruption. Loans under this scheme are for up to three years and range from €25,000 up to €1.5 million (first €500,000 unsecured) with a maximum interest rate of 4%.
Future Growth Loan Scheme provides long term loans of 8-10 years to businesses at low interest rates. There has been significant demand for the scheme and the initial funding has been almost fully subscribed. This expansion will further support the needs of SMEs, including primary producers, impacted by COVID-19. This new funding will be released in tranches. The long-term nature of these loans is particularly important for businesses as they plan for recovery. Work is under way to deliver this funding as quickly as possible.
My Department is encouraging any affected business to take advantage of the LEO COVID-19 supports. The situation is still developing from day to day and the Government continues to respond to these developments in an effort to protect and support Irish businesses. The LEOs will continue to work with existing applicants and recipients of Business Continuity Vouchers (BCV) and their subsequent business continuity plans. The awarding of vouchers under the BCV scheme will naturally taper off in the coming weeks as the Local Enterprise Offices process the outstanding applications.
InterTradeIreland launched two new business supports, these are currently being targeted at companies who are already on one of their programs. E-merge enables companies to engage consultancy support & advice (to the value of £2,500/€2,800) to help them develop online sales & ecommerce solutions.
Emergency Business Solutions: Fully funded consultancy support & advice (to the value of £2000/€2250) to address key business challenges in areas such as emergency cashflow, loan applications and HR/People.
As the Deputy is aware the COVID-19 pandemic has fundamentally changed the Irish and global economy. COVID-19 has emerged as a sudden and profound disruptor. Both globally and nationally, it is unclear how deep the impact will be or how long it will last. The COVID-19 pandemic is presenting significant challenges for SMEs, the impact of which varies by sector and region. Following a strong 2019 performance, companies focused on internationalisation and growth at the start of 2020 are facing new, and unplanned for, challenges.
My Department working with its agencies are continually reviewing the situation and I am informed that Enterprise Ireland is working with SMEs client companies to support the stabilisation of their business so that they can undertake a developmental programme focused on recovery and growth. To support companies the agency has:
- Developed and launched a suite of new funding supports utilising the additional flexibility permitted under Ireland’s Sustaining Enterprise Scheme supporting undertakings affected by the economic repercussions of the COVID-19 outbreak under the Temporary Framework for State Aid Measure to Support the Economy in the Current COVID-19 Outbreak.
- Set up a Business Response Hub to provide information to companies on what supports are available to assist with their specific needs. To date the agency has supported many companies through the Hub.
- As a first step, SMEs need to stabilise their business with key elements including business planning and accessing liquidity. Once a company has a financial and business continuity plan, Enterprise Ireland can provide funding for companies who have been impacted by COVID- 19, either through a reduction in turnover/profit or a significant increase in costs. The purpose of this funding is to enable the company to stabilise and implement a business sustainment plan, leading to a return to viability and contributing to the recovery of the Irish economy. New supports introduced to support this include:
Planning Supports
- Lean Business Continuity Support: This €2.5k grant supports companies to access training or advisory services related to crisis management, sustaining operations, moving to e-business/online and planning for resilience post crisis. Reflecting the practical and immediate nature of this support, company interest and demand has been strong.
- COVID-19 Business Financial Planning Grant: This grant of up to €5k provides 100 per cent funding for companies to access a financial consultant to prepare a financial plan to assist companies:
- understand their immediate financial position, secure the finance required to survive and provide a framework to sustain the business; and
- ensure they have a framework to identify and manage costs and gaps in funding.
- This is a critical support for a company to strengthen their position to identify funding needs and access required funding to implement their business plan.
- Liquidity Support
- Sustaining Enterprise Fund: The agency’s liquidity and medium-term financial supports are being delivered under the Sustaining Enterprise Fund. Support of up to €800,000 can be provided to companies, with different levels of support and funding instruments available, which are targeted at companies at different stages of development and growth (e.g. established companies, start-ups and small enterprises).
- The agency is actively working with companies to prepare applications for funding under the Sustaining Enterprise Fund.
In addition to the immediate COVID-19 response, Enterprise Ireland continues to strongly focus on supporting companies to invest in innovation, competitiveness and market diversification. These activities are critical to underpinning the long-term development and growth of Irish enterprise. As part of this, the agency:
- Is utilising its client engagement model to work with client companies on a one-to-one basis to establish company need and will tailor a support package utilising the full suite of supports offered by the agency.
- Is delivering non-financial supports, such as the market intelligence, available via the agency’s global network of 40 offices. This provides valuable insight for companies on markets which will be vital in informing a company’s internationalisation strategy.
Indigenous Irish companies are the backbone of the economy and I can assure the Deputy that the officials in my Department are working with all our agencies to monitor the needs of sectors and companies and provide new supports to meet changing company needs, as required.
The Restart Grant provides direct grant aid to micro and small businesses. The grant is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers. Funding in respect to the Restart Grant is provided by my Department and is administered by the 31 Local Authorities.
Enterprise Ireland, working with my Department will continue to monitor the needs of sectors and companies as the situation evolves and provide new supports to meet changing company needs, as required. Indigenous Irish companies are the backbone of the economy and the agency is committed to helping these companies sustain their businesses.
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 and will continue to keep the supports provided for enterprise under review.
461. Deputy Holly Cairns asked the Minister for Business, Enterprise and Innovation if supports or grants will be put in place for businesses that operate from privately-owned home premises in view of the fact the restart grant being issued by local authorities is inequitable as it only caters for businesses paying commercial rates. [11543/20]
View answerThe Restart grant is designed to help small and micro commercial enterprises to re-launch their business and reconnect with their employees and customers. The grant is being paid using the Local Authorities Commercial Rates System as the most efficient means of delivery.
The grant is the amount of the 2019 rates assessment subject to a minimum grant of €2,000 and a maximum of €10,000. There are approximately 150,000 ratepayers in the system. It was necessary therefore to devise criteria that ensured that the most needy businesses would benefit. Many businesses working from their private residences were in a position to continue trading and would not have the same level of reopening costs that a business that was closed will incur. Businesses that operate from home and have employees can continue to benefit from the Temporary Wage Subsidy Scheme and the full range of supports are available from the Local Enterprise Offices.
To qualify for a Restart grant, an eligible business:
- Must have a turnover of less than €5m and have 50 or less employees.
- Must have suffered a projected 25%+ loss in revenue from 1 April 2020 to 30th June 2020.
- Must commit to remain open or to reopen if it was closed.
- Must also declare the intention to retain employees that are benefitting from the Temporary Wage Subsidy Scheme (TWSS).
The Restart Grant support is just one part of the wider €12bn package of supports for firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
For a full list of supports for business please see https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
