Written Answers Nos. 31-51
31. Deputy James O'Connor asked the Tánaiste and Minister for Business, Enterprise and Innovation when the new €2 billion credit guarantee scheme will be operational; and if he will make a statement on the matter. [15806/20]
View answerThe new €2 billion COVID-19 Credit Guarantee Scheme announced by Government forms a major component of the Government’s strategy to aid SMEs in these difficult times. It will provide critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment.
It is a further development of the existing Credit Guarantee Scheme and will initially be available through the current finance providers Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland.
The Scheme will provide an 80% State guarantee on lending until the end of this year, for terms between 3 months and 6 years and will offer a range of lending products between €10,000 and €1 million including working capital and term loan facilities.
The key feature of the Scheme is that it will ensure the availability of liquidity to businesses by leveraging the strong relationship between banks and their customers all over the country.
There are a number of steps which need to be completed in relation to the Scheme, however, it is likely that the new Credit Guarantee Scheme will be available in September/October. It will commence second stage debate in the Dail next week.
The implementation of this Scheme requires amendments to the Credit Guarantee Act 2012 and following approval to publish the Credit Guarantee (Amendment) Bill 2020, the legislation will be considered by the Oireachtas in the coming week.
In addition to the legislative requirements, this ambitious COVID-19 CGS requires important engagement with the European Commission and the participating finance providers.
The new Scheme will take advantage of the relaxation of State Aid rules under the European Commission’s Temporary Framework which has provided the opportunity to widen the base of the current Credit Guarantee Scheme to now include primary producers. My officials are currently engaged with the European Commission in seeking approval and ensuring the Scheme's adherence to the rules set out in its Temporary Framework.
Officials from my Department and from the Department of Finance and Department of Agriculture, Food and the Marine along with the Strategic Banking Corporation of Ireland are engaging with finance providers in relation to the specific terms and conditions of the Scheme.
This engagement provides the opportunity to develop the Scheme with provisions that help its effective and efficient roll-out. As the State is providing a significant support to banks to provide credit facilities to companies, it is expected that the banks will apply interest rates below current market rates. It should also be noted that as required by the Temporary Framework, a premium will be charged in recognition of the State backed guarantee.
I expect the participating finance providers to implement this Scheme in an efficient and effective manner to ensure that this badly needed finance is quickly made available to businesses.
32. Deputy Brendan Smith asked the Tánaiste and Minister for Business, Enterprise and Innovation the measures he is taking to support small and medium enterprises in the Border region; and if he will make a statement on the matter. [15793/20]
View answerSMEs play a pivotal role in our economy and their role will be essential in getting people back to work and helping our economy to grow again. Therefore, helping our SMEs is central to my role as Tánaiste and Minister for Enterprise, Trade and Employment.
As you will be aware the Local Enterprise Offices operate in every county in Ireland including border counties and provide advice, information and support to businesses in starting up or growing their business.
The full range of Local Enterprise Office advisory supports continue to be available throughout the regions 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.
Furthermore, the Border Enterprise Development Fund (BEDF) which was launched in January, and is administered by Enterprise Ireland on behalf of my Department provides support for collaborative, enterprise capability building projects, to advance entrepreneurship, productivity and innovation in the Border Region. The aim of the fund is to improve the international competitiveness of enterprise in the Border Region in the context of Brexit and other market challenges, which now also include COVID-19. The Fund is part of a €28 million economic stimulus package announced earlier this year for the six border counties of Louth, Monaghan, Cavan, Sligo, Leitrim and Donegal.
On 22 June last, the then Minister for Business, Enterprise and Innovation, Heather Humphreys TD, named the 11 successful border county projects from the North East and North West of the country approved to share in the €17m Border Enterprise Development Fund 2020, an initiative administered for my Department by Enterprise Ireland.
Nineteen applications were received from project groups in Counties Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth with 11 projects selected for funding following a rigorous evaluation process. Four of the finalist projects will be based in Louth, two in Monaghan, two in Donegal, one in Cavan, one in Sligo and one in Leitrim.
The successful projects are closely aligned with the Strategic Objectives for enterprise development set out in the Regional Enterprise Plans for the North-East and the North West, particularly in relation to strengthening SME resilience and innovation, growing entrepreneurship, and creating quality jobs across the Border region.
Guided by the Regional Enterprise Plans, the border region is well positioned to continue to see the benefits and results of collaborative and innovative initiatives that can make a significant impact on enterprise development in the region. IDA Ireland and Enterprise Ireland are continuing their important work in assisting businesses in the region to sustain and grow employment and also in winning new investments for the border counties.
In addition and as stated in the Programme for Government, we will bring forward a July Stimulus to support our economy and help restore employment. Our focus is to support the viability of the business and enterprise sector and to get people back to work as quickly as possible in all sectors and in all regions.
While I have emphasised the importance of preserving existing firms and jobs, the July Stimulus package should also have an eye to exploiting emerging opportunities and attract high value projects with significant economic benefits. Importantly, the July Initiative must position our economy and firms in all our regions to meet future challenges. In the near-term, this includes helping companies further in overcoming the challenges of Brexit but we also need to include measures that build enterprise resilience. This will have particular importance for the firms in our border regions.
All supports are currently being reviewed and assistance in the form of grants, including in preparation for Brexit will be considered.
I look forward to announcing the details of the July Stimulus package shortly.
33. Deputy Gino Kenny asked the Tánaiste and Minister for Business, Enterprise and Innovation if the amending of employment legislation and the Companies Act 2014 will be made a priority in view of a dispute at a company (details supplied) and the past failure to legislate and in further view of the Duffy Cahill report; if the passage of the Protection of Employees (Collective Redundancies) Bill 2017 will be supported, which passed Second Stage in the Thirty-second Dáil; and if he will make a statement on the matter. [15813/20]
View answerDebenhams is a court-supervised liquidation, subject to oversight of the High Court and accordingly is sub judice. Under the Companies Act 2014, I have no power to intervene in a court-supervised liquidation.
The Duffy-Cahill report found in overall terms that “the provisions of the Companies Act 2014 that are already available do not appear to be in need of amendment, but more in need of use.” A range of factors will be involved for liquidators or creditors in deciding whether to pursue litigation based on the provisions of the Companies Act 2014. Such statutory provisions and associated civil and criminal penalties also provide an important deterrent effect in terms of companies complying with their obligations under the Companies Act 2014.
In 2017, in parallel with the Duffy-Cahill report, the Company Law Review Group undertook a root and branch review of the Companies Act to address concerns raised in respect of the protection of employees and unsecured creditors. The report which emanated from this review by the Company Law Review Group, also generally found that the current provisions of the Companies Act 2014 provide a comprehensive framework which strikes a balance between the interests of members of a company and other stakeholders, including employees.
The Protection of Employment Act 1977 imposes a number of obligations on employers who are proposing collective redundancies, including official notification to the relevant Minister and a 30 day consultation period to allow employee representatives adequate opportunity to consider the employer’s proposals and to make constructive proposals in response. While responsibility for this legislation currently rests with my colleague the Minister for Employment Affairs and Social Protection, it will shortly transfer to my Department under a wider transfer of functions Order.
The Workplace Relations Commission (WRC) is an office under the aegis of my Department which is available to any interested parties who may require it. As part of its functions the WRC provides information relating to employment entitlements and obligations, equality and industrial relations matters.
It is my understanding that the Protection of Employees (Collective Redundancies) Bill 2017 lapsed with the dissolution of the Dáil and Seanad on the 14th of January 2020. Pursuant to the Standing Orders of both Houses of the Oireachtas it will be for the Oireachtas to restore the Bill to the Order Paper.
The Government has committed in the Programme for Government to review whether the current legal provisions surrounding collective redundancies and the liquidation of companies effectively protect the rights of workers, and I intend to ensure that this is progressed in a timely manner.
34. Deputy Verona Murphy asked the Tánaiste and Minister for Business, Enterprise and Innovation if he will list the requests made under section 10(4) of the Competition and Consumer Protection Act 2014 to the Competition and Consumer Protection Commission; his plans to make a further request; and if he will make a statement on the matter. [15682/20]
View answer37. Deputy Denis Naughten asked the Tánaiste and Minister for Business, Enterprise and Innovation the detail of the requests made under section 10(4) of the Competition and Consumer Protection Act 2014 to the Competition and Consumer Protection Commission; his plans to make a further request; and if he will make a statement on the matter. [15635/20]
View answerI propose to take Questions Nos. 34 and 37 together.
Ensuring fair competition while protecting consumer welfare is vital for the continued growth of the economy. When I become aware of serious issues of concern, I may invoke the powers under Section 10(4) of the Competition and Consumer Protection Act 2014 to request that the Competition and Consumer Protection Commission (CCPC) conducts relevant studies or analysis relating to consumer protection and welfare, reviews any practice or method on competition affecting the supply and distribution of goods or the provision of services, or any other matter relating to competition.
Since 2014, three requests have been made under Section 10(4) of the Competition and Consumer Protection Act 2014 to the CCPC. The requests concern:
1. Options for Ireland’s Mortgage Market
In June 2017, the CCPC published ‘Options for Ireland’s mortgage market’, which reviewed how best to lower the cost of secured mortgage lending and improve competition and consumer protection in the market. The CCPC set out thirteen options for Government to address barriers to entry to the Irish market. The options were split into short, medium, and long term measures and focused on restoring trust in the banking sector, consumer switching and business friendly initiatives to attract entry into the market. The report was submitted to the Minister of Finance who had requested the study. The consideration and implementation of the options with the relevant Departments and Agencies is a matter for the Department of Finance.
2. The Operations of Ireland’s Waste Collection Market
In September 2018, the CCPC published ‘The Operation of the Household Waste Collection Market’ study, which was the first in-depth analysis of this market from a competition and consumer protection perspective. The CCPC reviewed the current structure and the evolution of the waste collection market, the economic theory behind utility markets and compared Ireland’s market to those of other European countries. The CCPC identified a range of issues on the operation of the market and the CCPC’s findings indicated that the market was moving towards a service provision model of unregulated monopoly operators, where the State in most cases did not have any means of incentivising or controlling the market. The report was submitted to the Minister for Communications, Climate Action and Environment, who had requested the study. It is my understanding that the recommendations are under consideration as part of the development of a new Waste Action Plan for Ireland.
3. The Operation of the Public Liability Insurance Market
On 15 August 2019, the former Minister for Business, Enterprise and Innovation requested that the CCPC examine how the public liability insurance market operates, how competition works in that market and whether any practice or method of competition affects the pricing levels of public liability insurance within that market. To fulfil the request, the CCPC has reported that it is currently completing an exercise that includes the following actions:
- A review of current issues and recent studies in the sector, including the reports of the Cost of Insurance Working Group and the Personal Injuries Commission.
- An overview of how the market operates and how public liability insurance is procured, including the extent to which insurance is intermediated by brokers or purchased directly from insurers.
- An analysis of the market structure and levels of competition.
- Determinants of costs, premia and profitability in the market.
- An assessment of barriers to entry and exit.
- A review of similar markets and studies internationally.
To develop the study, the CCPC is undertaking a wide range of activities where the majority are nearing completion:
Holding meetings with representative groups, public bodies, industry representatives and customers.
Conducting customer focussed market research among a representative sample of businesses, community groups and sports organisations.
Issuing a public consultation paper to obtain the views of key stakeholders.
Analysing data that is available on the market.
Undertaking desk-based research.
The CCPC is currently reviewing the type and range of information obtained to date to ensure that any potential issues that could impact on the level of competition in this market are identified. This will also help inform any potential recommendations which will be developed in the final stage of the study. The CCPC is working to conclude the study as efficiently as possible as a key priority for the organisation.
35. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which he expects to combine enterprise and innovation in the context of maximising economic recovery from the Covid-19 crisis; the degree to which he has identified precise job numbers to be realised in this context on an annual basis over the next five years; and if he will make a statement on the matter. [15688/20]
View answerThe new Programme for Government clearly sets out that this will be a Government of enterprise, creating new jobs, preparing for the jobs of the future, driving our economic recovery and improving the quality of life for all our people.
Since I took up the role of Minister for Enterprise, Trade and Employment, my focus has been on preparing the July Stimulus Package which will be radical, of scale and far-reaching. Not only must we overcome the current challenges, but we must also look ahead and set our economy on the right course for the future.
Already there are some welcome signs of improvement in business activity and the economy. However, sectors that employ a lot of people, such as tourism and hospitality, arts and entertainment and other services that rely on social interaction, continue to be in serious difficulty and their recovery prospects are highly uncertain. The emphasis of Government is to preserve as many jobs as possible within those sectors, and to enable new jobs to be created elsewhere within the economy.
The Programme for Government also indicates that enabling our SMEs to return to capacity where possible and more broadly to strengthen SME resilience, productivity and innovation will be an important focus for the National Economic Plan. Increasing investment in RD&I and promoting strong links between enterprise and the research community will assist in ensuring that Ireland keeps its relative advantage in technological adoption, increases the development of the green economy and assist in maximising our economic recovery.
The Future Jobs Ireland framework will also be updated in light of the crisis and new priorities. The importance of RD&I, and how we can drive developments in this area, was woven through the pillars of Future Jobs Ireland 2019, in particular Pillars 1 (Embracing Innovation and Technological Change), 2 (Improving SME Productivity), and 3 (Enhancing Skills and Developing and Attracting Talent) and must continue to be an integral part of the Future Jobs Ireland agenda.
36. Deputy Catherine Connolly asked the Tánaiste and Minister for Business, Enterprise and Innovation if Enterprise Ireland and his Department have conducted a review of the regional enterprise development fund to identify gaps in funding provision in support of regional enterprise development; if so, the findings of the review; and if he will make a statement on the matter. [15762/20]
View answerMy Department’s Regional Enterprise Development Fund (REDF) was introduced to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at county, regional and national level. The REDF, which is administered by Enterprise Ireland, has been an effective instrument of policy particularly as a complement to my Department's Regional Enterprise Plans where it has served as an enabler for projects emerging from that regional collaborative process. There have been three calls under the Fund to date and just over €100 million in funding has been approved across 68 projects, with projects approved in every region.
Following the conclusion of the first two Calls under the REDF, in March 2019, my officials and officials from Enterprise Ireland reviewed the format and process of the Scheme and this informed some technical changes to the subsequent Third Call in June 2019; for example a reduction of the number of streams from four to three, as well as associated adjustments to the funding ranges.
Enterprise Ireland has not carried out an ex-post review of the Scheme as yet, owing to the fact that projects funded are currently in the various stages of implementation. However, a National Oversight Group, comprising of officials from my Department and Enterprise Ireland has been established to review overall progress on each project against timelines and projected drawdown of funds. The National Oversight Group meets on a quarterly basis and the next meeting is scheduled for 23 July 2020.
Enterprise Ireland has advised me that it plans a full review of the Regional Enterprise Development Fund and the Border Enterprise Development Fund to commence later this year to determine the impact of the initiatives and the learnings for any future schemes.
Enterprise Ireland continues to monitor the effective implementation of projects approved under the three REDF calls as part of its ongoing Regional Development Strategy.
38. Deputy Louise O'Reilly asked the Tánaiste and Minister for Business, Enterprise and Innovation the funding that has been made available for each of the schemes offered to assist businesses due to Covid-19; the number of applications to each scheme; the number of unsuccessful and successful applications, respectively; the amount approved and sanctioned for successful applicants under each of the schemes; the amount actually released to successful applicants under each of the schemes to date; and if he will make a statement on the matter. [15753/20]
View answerThe Government has put in place a range of measures to assist firms to deal with the impacts of COVID 19 on their businesses, to reopen and to sustain employment. We are developing the July stimulus which will be ambitious and radical in deepening and widening the impact of the range of measures we have in place.
Covid-19 Working Capital Scheme
The Covid-19 Working Capital Scheme is offered 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 through participating finance providers. It makes available a fund of up to €200 million in lending 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 impacts of the pandemic. Work is under way on a significant expansion to the scheme which will be brought to the market in the coming weeks.
The scheme is open to eligible SMEs and small mid-caps (businesses of up to 499 employees) negatively impacted by Covid-19. Loans under the scheme range from €25,000 to €1.5m and are for periods of up to three years. The maximum interest rate under the scheme is 4% and loans of up to €500,000 are available unsecured.
MFI Loan
The 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. Interest rates of between 4.5% and 5.5% are available. Funding of €15.65 million has been made available to MFI since March.
Credit Guarantee Scheme
The Credit Guarantee Scheme is available to Covid-19 impacted businesses, it supports loans up to €1 million for periods of up to 7 years. The Scheme offers a partial Government guarantee (currently 80%) to banks against losses on qualifying loans to eligible SMEs. The scheme is designed to support a range of debt products appropriate to the borrowing needs of SMEs. Term loans and other products such stocking facilities, performance bonds will be covered by the Scheme. There is no direct funding provided to the Scheme. The Scheme give rise to a contingent liability with payments made on individual claims under the Scheme.
Business Continuity Support (IDA Ireland): An initial application for €2,500 support for training or advisory services related to the continued operation or re-start of businesses during the current pandemic. Further support can be applied for up to a maximum of €29,700. This support is open to small, medium or large client companies of IDA Ireland.
The Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet with supports of a minimum of €2,000 up to €10,000 available. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of Covid-19.
Using funding allocated by Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas in accordance with the criteria for the Scheme and the Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme. The grants are available through the Local Authorities using a simple online application form.
The Restart Grant is just one part of a wider assistance package for business and 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. Within the funding available so far, the priority has been to assist those who have suffered most, including closure of the business, but whom will still have incurred ongoing costs.
Enterprise Ireland is working with 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 4,800 companies through the Hub.
As a first step, companies need to stabilise their business, with the two key elements of this being business planning and accessing liquidity. To assist companies with this, the following COVID-19 supports have been introduced:
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. Since its launch in April, 669 applications for funding have been received by the agency. Currently 608 have been approved.
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 firstly, stabilise, and then, to implement a business sustainment plan, leading to a return to viability and contributing to the recovery of the Irish economy. 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).
Supporting Retailers impacted by COVID-19: Enterprise Ireland launched a COVID-19 Online Retail Scheme in April to assist retailers to enhance their online capability and to develop a more competitive online offer. On 2nd July 2020 I announced that 183 retailers had been approved for €6.5m in funding as part of the scheme. The value of the scheme, which received 373 applications, was increased from €2m to €6.5m due to the high level of demand amongst retailers and the high quality of the proposals received.
The Business Continuity Voucher scheme was launched on 26th March and was closed for new applications on 15th May. It was designed for businesses across every sector that employ up to 50 people. The voucher, worth up to €2,500 in third party consultancy costs, was used by companies and sole traders to develop short-term and long-term strategies to respond to the initial Covid-19 pandemic and to plan for the eventual recovery and reopening of the economy.
The Trading Online Voucher Scheme was originally launched nationally by the Department of Communications, Climate Action and Environment in mid-2014. The Scheme offers financial assistance in the form of a Voucher of up to €2,500 in order to procure expert consultancy advice on trading on-line including website management and is delivered along with training and advice to help business trade online.
E-Merge (IntertradeIreland)
The E-Merge programme provides consultancy support to assist companies develop online sales and eCommerce solutions to the value of £2,500/€2800. The scheme is open to cross-border enterprises, registered on the island of Ireland, and is involved in manufacturing or tradable services (other conditions also apply). Consultancy support can assist enterprises in areas such as search engine optimisation (SEO), and website management.
Emergency Business Solutions (InterTradeIreland)
This scheme, co-funded by the Department of Business, Enterprise and Innovation and the Department for the Economy (NI) allows eligible companies to avail of professional advice, to the value of £2,000/€2,250 including VAT (100% funded), to address business challenges arising from the pandemic. Eligible companies are cross-border in nature and involved in manufacturing and tradable services.
Table 1. Detail of Take-up of Schemes as of 3rd July 2020
|
Scheme |
No. of Applications |
No. of Unsuccessful |
No. of Successful |
Amount approved and sanctioned for successful applicants |
Amount actually released to successful applicants under each of the schemes to date |
|
· Approved · Sanctioned |
|||||
|
Covid-19 Working Capital Scheme |
3,288 |
15 |
2,966 |
* 632 loans progressed to sanction at bank level, to a total value of €76.56m |
Drawdown figure not yet available |
|
MFI Covid-19 loan |
1015 |
164 declined 115 ineligible or withdrawn |
624 |
€16,926,475 |
€12,772,964 |
|
Credit Guarantee Scheme |
N/a |
5 since March 2020 |
N/a |
€1,606,000 |
€1,606,000 |
|
IDA Ireland Business Continuity Support |
46 |
0 |
46 |
Approved – €115,000 Sanctioned – €115,000 |
Zero |
|
Restart Grant |
40,506 |
13,336 |
26870 |
· Approved- €94,795,163 · Sanctioned- €15,044,550 |
€94,795,163 |
|
Business Financial Planning |
669 |
N/a |
608 |
€2,990,153 |
€94,259 |
|
Lean Business Continuity Voucher |
298 |
N/a |
245 |
€612,500 |
€52,035 |
|
Sustaining Enterprise Fund |
43 |
N/a |
15 |
€6,450,000 |
€300,000 |
|
Sustaining Enterprise Fund – HPSU |
26 |
N/a |
22 |
€1,100,000 |
€200,000 |
|
Sustaining Enterprise Fund – Small Enterprise |
13 |
N/a |
6 |
€275,000 |
€100,000 |
|
Covid-19 Online Retail Scheme |
373 |
N/a |
183 |
€6.5 million |
€0 |
|
The Businesses Continuity Voucher |
14,856 |
2,512** |
11,261 |
· Approved - €23.84m · Sanctioned - €27m |
2,680,700*** |
|
Trading Online Voucher Scheme |
7,130 |
453 |
4,303 |
Approved - €9.22m Sanctioned - €19.8m |
1,401,815 |
*with the Covid-19 Working Capital Scheme there are two different application processes (the first with SBCI and the second with a participating bank). As such, there is an “approved” number (of firms who have received eligibility approval) and a second “sanctioned” number (of firms who have been approved lending by the bank after that first application).
**Applications Processed of 13,773 less applications approved of 11,261
***This is the amount paid to voucher recipients and consultants paid on their behalf. There are two methods of client engagement in respect of the Business Continuity Voucher (BCV).
39. Deputy Denis Naughten asked the Tánaiste and Minister for Business, Enterprise and Innovation the steps he is taking to secure employment in Ballinasloe, County Galway, following a review of operations announced by a company (details supplied).; and if he will make a statement on the matter. [15676/20]
View answerI understand that staff at Aptar have been informed that the company is reviewing its operation at Ballinasloe. While no decision has yet been taken, I am informed that this review could lead to redundancies later this year. IDA Ireland are in close contact with the firm and are working to try avert, if possible, any potential job losses.
The uncertainty the situation has created is obviously an unwelcome development for the staff at the company and the region. My primary concern is for the workers and families who could be directly affected, many of whom have worked with the company for many years. In the regrettable event that redundancies do result, the Government will make every State support available to those impacted in order to help them transition and find new employment opportunities.
I am asking the West Regional Enterprise Committee, on which the key agencies and local authorities are represented, to consider all scenarios in relation to this company.
The situation at the company is particularly unfortunate given the wider economic difficulties that have been presented by COVID-19. My focus, since I became Tánaiste and Minister for Enterprise, Trade and Employment, has been on supporting businesses and protecting jobs. We have also been working hard on the forthcoming Jobs Stimulus Package, which will include far-reaching measures to set us on the right course for the next five years and beyond. Our aim is to create new employment opportunities all over the country, including in County Galway.
My Department and its Agencies have also been working hard, over a sustained period, to support job creation in the regions. This has included setting ambitious targets to ensure that employment and investment are distributed as evenly as possible across the country. Last year, there were over 21,000 people employed in IDA-supported firms in Galway. This is almost double the number employed in 2010 (11,235). While the period ahead may prove more challenging, an important objective will remain securing new foreign direct investment for the County.
Wider enterprise efforts are also underway to generate new growth in Galway and the surrounding area. For example, regional stakeholders – including Enterprise Ireland, the LEOs and the Higher and Further Education Institutes – are working together on implementation of the Regional Enterprise Plan for the West. This is aimed at strengthening the environment for job creation in the region and Ballinasloe will also benefit from this.
Another important initiative in this context is the Regional Enterprise Development Fund, through which over €16.7m in funding for the West – over three competitive calls – has been approved for collaborative regional enterprise projects. The region has had particular recent success, with five Galway-based projects being awarded a total of €9.6m. These projects are currently being developed and their completion will enhance the attractiveness of the area for further investment and job creation.
40. Deputy Paul McAuliffe asked the Tánaiste and Minister for Business, Enterprise and Innovation the amount of funding provided to businesses under the business restart grant; the number of companies that have received funding; and if he will make a statement on the matter. [15804/20]
View answerThe Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet. Grant payments available range from a minimum of €2,000 up to €10,000 available. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of Covid-19.
Using funding allocated by my Department through Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas in accordance with the criteria for the Scheme and the Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme.
The Restart Grant is just one part of a wider assistance package for business and 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. Within the funding available so far, the priority has been to assist those who have suffered most, including closure of the business, but whom will still have incurred ongoing costs.
As of 10 July 2020, 40,506 businesses have applied for €141.7 million in grants. A total sum of €94,795,163 in grants has been disbursed to businesses by local authorities to date, in respect of 23,326 applications.
A further sum of €15,044,550 is due to be paid in respect of applications which have recently been approved.
The Restart grant scheme has been broadly welcomed by those businesses which have benefitted. However, the July stimulus package, among other things, needs to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. Our current Restart Grant is a significant help and I am keen to widen and deepen its impact. That is why a review has commenced to identify the effectiveness of the Scheme and also, in line with an undertaking given in the Programme for Government, to carry out a general review of the Restart Grant which will be concluded shortly.
41. Deputy Martin Kenny asked the Tánaiste and Minister for Business, Enterprise and Innovation the supports his Department will provide to outdoor active tourism businesses that are facing closure due to the restrictions of Covid-19 and high insurance costs with no access to credit; and if he will make a statement on the matter. [15764/20]
View answerMy Department and its agencies have worked with businesses across all sectors since the arrival of Covid 19 to help businesses overcome the challenge presented by the pandemic. The Government has put in place a comprehensive suite of supports for firms, 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 my Departments website on https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
My Department has put in place a number of loan schemes to provide access to funding to meet working capital and investment needs of microenterprises and SMEs to meet the strong demand for cash availability.
The full range of Local Enterprise Office 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.
As stated in the Programme for Government, we will bring forward a July Stimulus to support our economy and help restore employment. Our focus is to support the viability of the business and enterprise sector and to get people back to work as quickly as possible in all sectors including the tourism sector. Helping our SMEs is central to this, given their pivotal role in the economy and employment. The July Stimulus will extend, enhance and add to the existing measures totalling €12bn in supports for Covid-19 impacted businesses already announced.
Currently, any business (Sole Trader, Partnership or Limited Company) with less than 10 full time employees and annual turnover of up to €2m may apply to Microfinance Ireland for funding from €5,000 – €50,000 where the business is not in a position to avail of finance from Banks and other commercial lending providers. The loan incurs 0% interest for the first six months and Zero repayments. Thereafter a reduced interest rate of 4.5% APR applies to loans applied for through the Local Enterprise Office.
The Restart Grant, for example, is just one part of a wider assistance package for business and for firms of all sizes. Businesses in this particular segment of the tourism sector are eligible to apply for the Restart grant if they operate from rateable premises; for example, an office location and rented storage space for equipment. Under the current rules of the scheme, if an entrepreneur operates such a service from their home, they are not eligible for the grant.
Regarding any further targeted measures specifically aimed at the tourism and hospitality sectors, in March 2020 a dedicated Tourism Recovery Taskforce was established made up of leaders from various sectors of the industry, who will work together to deal with the many challenges ahead. It has been specifically tasked with identifying measures required to enable Irish tourism to recover from the devastating effects of COVID19.
Local enterprise offices also offer a Trading Online Voucher Scheme, this scheme is funded by the Department of Communications Climate Action and Environment and delivered nationwide in partnership with the Department of Business, Enterprise and Innovation, Enterprise Ireland and the 31 Local Enterprise Offices. There has been a tremendous demand for the scheme from enterprises across the country since its expansion.
On the 8th of June the Government announced additional funding of €14.2m to continue the Scheme bringing the total funding allocation in 2020 to €19.8m. This additional funding will allow LEOs to approve additional vouchers to successful applicants. The Scheme offers skills training, mentoring and financial support of up to €2,500 to help small and micro-businesses to develop their ecommerce capability. New flexibilities to the Scheme were introduced in April including reducing the requirement for co-funding from 50% to 10% and allowing businesses to apply for a second voucher of up to €2,500 where they have successfully utilised their first one. As you may be aware the Schemes outlined above offer specific, experienced mentoring for their clients.
All LEOs also offer a number of ‘soft’ supports in the form of training or mentoring such as:
The Mentor Programme which is designed to match up the knowledge, skills, insights and entrepreneurial capability of experienced business practitioners with small business owner/ managers who need practical and strategic one to one advice and guidance.
The LEO Management Development programmes which provide the owner-manager with the management, leadership, business skills and knowledge to achieve sustainability and growth in their business.
LEAN for Micro which is a targeted programme for Local Enterprise Office clients to help small businesses boost competitiveness, increase performance and profitability as well as building resilience within their companies.
Further to this, if a potential business is not eligible for direct grant aid, an entrepreneur with a viable business proposal can also use their LEO to make an application to MicroFinance Ireland, which offers support in the form of loans of up to €25,000 to start-ups with viable business propositions, that do not meet the conventional risk criteria applied by the banks. Successful applicants can avail of a more favourable interest rate from MFI of 6.8% if they make their application through the LEOs.
My former colleague, the then Minister for Employment Affairs and Social Protection, Regina Doherty announced on 25 June that the Department’s Enterprise Support Grant will be made available to assist self-employed recipients who are exiting the Pandemic Unemployment Payment (PUP) scheme with a once-off grant of up to €1,000 to re-start their business. The grant will be payable to self-employed micro enterprises which employ fewer than 10 people, have an annual turnover of less than €1 million and are not eligible for support from the COVID19 Business Restart Grant or other similar business reopening grants.
All COVID19 business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate. In that regard, I can assure the Deputy that I will continue to work with my colleagues across Government and all stakeholders to examine further assistance to businesses impacted by Covid-19.
My former colleagues, the then Minister for Transport, Tourism and Sport, Shane Ross and the then Minister of State for Tourism and Sport, Brendan Griffin, recently established a special Tourism Recovery Taskforce with an Independent Chair, dedicated to spearheading economic recovery for the tourism sector and ancillary activities to prepare recommendations on how best the Irish tourism sector can adapt and recover and to identify priority aims, key enablers and market opportunities for the sector for the period 2020-2023.
42. Deputy Alan Dillon asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding the establishment of a regional IDA science and technology park or equivalent for Castlebar, County Mayo, to enhance the competitiveness of the county globally for inward investment and ensure balanced and sustainable job creation in the county (details supplied). [15691/20]
View answerAs Tánaiste and Minister for Enterprise, Trade and Employment my focus is to lead our country through the economic crisis that has been caused by the pandemic to get our businesses open and our people back to work. My Department, IDA Ireland and the other enterprise agencies under my remit are doing everything possible to support businesses and get people safely back to work, whether in Mayo or elsewhere.
IDA Ireland's results for the first six months of this year have demonstrated the particular resilience of our foreign direct investment (FDI) base. Despite the challenges we have faced this year - over 130 investments to date in 2020, which have the potential to create almost 10,000 jobs. Almost half of these new projects were secured for locations outside Dublin, with 53 investments from companies investing in Ireland for the first time.
Mayo has experienced year-on-year increases in employment by IDA client companies since 2013, with 108 net new jobs created in 2019. There are now 17 IDA client companies in the county employing nearly 5,000 people. Mayo is home to a number of particularly prominent multinationals - such as Allergan, Baxter Healthcare and Coca Cola - that continue to perform well.
As the Deputy notes in his question, the IDA's Business and Technology Park in Castlebar has also helped to attract FDI to the County. Last September, I had the honour of visiting this Business Park to attend the official opening of Fort Wayne Metals' new manufacturing facility, which will create more than 80 new jobs over the next five years. Whilst there are currently no plans in place to establish a new science and technology park in Castlebar, the IDA continues to review its property and land portfolio on an ongoing basis, in line with the strong emphasis it places on FDI in regional Ireland. Regional development, including for the West, will also again be at the heart of the forthcoming new IDA strategy and I will bring the Deputy's proposal to their attention.
43. Deputy Cathal Berry asked the Tánaiste and Minister for Business, Enterprise and Innovation the steps he is taking to support remote working within his Department, its agencies and through the funding supports provided to business; and if he will make a statement on the matter. [15684/20]
View answerAs our country enters a new normal, remote working is now more important than ever. Last December my department published the Remote Work in Ireland report. This outlined the prevalence and types of remote working in existence in Ireland. It also identified influencing factors on the part of both employers and employees.
One of the findings of the report was the need for further guidance for employers and employees. My department is now working to deliver guidance that will fill that need. An Interdepartmental Group, consisting of relevant departments and agencies, has been formed to steer the delivery of this guidance.
The ‘Guidance for Working Remotely during COVID-19' webpage is a central access point for all of the Government guidance currently available on remote working. The allows employers and employees to navigate the existing guidance easily and helps to inform those working from home during the course of the COVID-19 pandemic.
Last week we launched a public consultation on remote working guidance. This consultation will help us to understand what remote working issues are most pressing for employers and employees. The submissions that we receive will allow us to identify areas where further guidance can be provided and will also shape future remote working policy. I encourage all interested parties to take part in this consultation, the full details of which can be found on my department’s website. It is open until August 7th.
Following the results of the consultation, we will work to further refine the current remote working guidance. This work will be completed later this year.
Remote working is also an important part of the work of the enterprise agencies. For example, Enterprise Ireland’s regional plan, ‘Powering the Regions’ emphasises the importance of smart working and commits to the creation of co-working spaces. To date, Enterprise Ireland has invested over €180 million in Enterprise Centres, Incubator Hubs and shared office space.
IDA Ireland are also aware of the potential business benefits of remote working. In collaboration with Laois Offaly Education and Training Board (ETB), SOLAS and Grow Remote, the IDA have recently launched two new online national training programmes in response to COVID-19. These courses aim to develop the capability and capacity of current remote workers, future remote workers and line managers nationally.
Through all of these initiatives, my department aims to facilitate the further development of remote working in our country.
44. Deputy Peter Fitzpatrick asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to deal with a no-deal Brexit; if businesses along the Border will be supported by measures that will lessen the impact of a no-deal Brexit; and the measures he is considering to help businesses through a no-deal Brexit (details supplied). [15749/20]
View answerMy Department and its agencies have put in place extensive supports, schemes and advisory resources to ensure that businesses around the country are prepared for Brexit. These measures aim to assist businesses in identifying key risk areas and the practical preparatory actions they can take in response to the UK’s withdrawal from the EU.
InterTradeIreland’s [ITI] Brexit Advisory Service offers a focal point for businesses working to navigate changes in cross-border trading relationships as a result of Brexit. As part of this service, ITI has run a series of awareness-raising events to help improve knowledge of customs processes and procedures, as well as identifying actions businesses cant take in areas like logistics and supply chain management.
ITI’s Brexit Planning Voucher enables eligible businesses to seek professional advice on how best to plan and prepare for Brexit. This support helps businesses obtain advice on specific areas such as tariffs, currency management, and regulatory and customs issues. Vouchers are worth up to €2,250 (inclusive of VAT) each.
ITI has also launched a further financial support in the form of the Brexit Implementation Voucher, which offers financial support up to £5,000/€5,625 (inclusive of VAT), with InterTradeIreland paying 50% towards implementing critical changes in relation to Brexit matters.
The network of Local Enterprise Offices (LEOs) around the country is the first-stop-shop for anyone seeking guidance and support on starting or growing their business, including businesses in the border counties. The LEOs have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit. The LEOs also offer customs training workshops to support businesses trading with third countries in advance of the UK’s withdrawal from the EU.
The LEOs also engage in a number of other schemes to help businesses prepare for Brexit. The Technical Assistance Grant for Micro Export is offered as an incentive for LEO clients to explore and develop new market opportunities.
The six LEOs in the Border region are also working together with their Northern Ireland counterparts under the EU Co-Innovate Programme. The aim of Co-Innovate is to give SMEs from the manufacturing and tradable services sectors in the eligible regions the tools and tailored support to help them to innovate, differentiate and compete successfully.
The Brexit Loan Scheme provides relatively short-term working capital, for up to three years, to eligible businesses with up to 499 employees to help them innovate, change or adapt to mitigate their Brexit challenges. The scheme is open to eligible businesses from all regions of the country, including those in the Border counties. Dublin aside, the most recent quarterly report shows that the border region is the most active region in terms of eligibility applications for the scheme.
The Future Growth Loan Scheme provides a longer-term facility, for 8-10 years, of up to €300m to support strategic capital investment for a post-Brexit environment at competitive rates. This scheme has been jointly funded by the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine to make available loans of €100,000 (€50,000 for primary agriculture) to €3 million, with loans of under €500,000 being provided on an unsecured basis. The scheme is open to eligible Irish businesses, including those in the primary agriculture and seafood sectors, to support strategic, long-term investment in a post-Brexit environment. As of 3 July, there have been 4,200 eligibility applications received, of which 3,960 have been approved and 1,126 loans progressed to sanction at bank level to a value of €244.34 million.
Enterprise Ireland [EI] has established a Prepare for Brexit online portal and communications campaign, as well as an online “Brexit SME Scorecard” to help Irish businesses self-asses their exposure to Brexit and a “Be Prepared Grant” to support SME clients in planning to mitigate risks arising from Brexit. It has also launched a new Eurozone Strategy to help SMEs broaden their export footprint beyond the UK.
EI’s Customs Insights course helps businesses looking at customs for the first time to understand the key customs concepts, documentation and processes. The course advises on the key actions companies can take to prepare for Brexit and highlights the various supports available.
While we have seen strong uptake of the Brexit supports available to businesses, I am conscious that the prolonged uncertainty around the Brexit process may have led businesses to have deferred their preparations, and that this has likely been exacerbated by the Covid-19 pandemic. It is important to understand that the UK’s withdrawal from the EU will bring change for Irish businesses and I want businesses, particularly those around the Border counties to know my Department and agencies are here to help.
45. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number and value of grants disbursed under the restart grant scheme since its inception; the average grant disbursed under the scheme; and if he will make a statement on the matter. [15816/20]
View answerThe Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet. Grant payment available range from a minimum of €2,000 up to €10,000 available. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of Covid-19.
Using funding allocated by Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas in accordance with the criteria for the Scheme and the Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme.
The Restart Grant is just one part of a wider assistance package for business and 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. Within the funding available so far, the priority has been to assist those who have suffered most, including closure of the business, but whom will still have incurred ongoing costs.
The unprecedented circumstances of the COVID19 global pandemic has resulted in a swiftly evolving landscape for enterprises. I will continue to use all available tools at my disposal to support businesses and ensure their survival.
As of 10 July 2020, 40,506 businesses have applied for €141.7 million in grants. A total sum of €94,795,163 in grants has been disbursed to businesses by local authorities to date, in respect of 23,326 applications.
A further sum of €15,044,550 is due to be paid in respect of applications which have recently been approved.
Since disbursements began in June, based on the total value of grants and the number of approved applications, the average approved grant per week has been circa €4,000.
46. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to safeguard the pay and rights of construction, cleaning and security workers affected by a recent High Court judgment (details supplied); and if he will make a statement on the matter. [15809/20]
View answerIn June, the High Court found that Statutory Instrument 251 of 2019 was made outside the powers of the Industrial Relations Act 2015. It was also found that the legislative framework governing the sectoral employment process is unconstitutional. This is because of the manner, in the judge’s ruling, in which the process is delegated to bodies outside these Houses and the lack of clear guidance in relation to how to balance competing interests in drawing up sectoral employment orders.
As set out in the House on Thursday, July 9th, it has been decided to appeal that decision. Once the Orders which must be completed by the High Court before this ruling has legal effect have been perfected, an appeal will be lodged in the Court of Appeal and in the Supreme Court.
This is an area of legislation that has proven very litigious over the past fifteen years, with significant constitutional issues being called into question. The Industrial Relations Act 2015 was a major piece of legislation that sought to deal with those issues, and we must now await the outcome of appeal process to understand where we go on this issue next and before we commit to any further legislation.
The Employment Regulation Orders that govern the minimum rates of pay and terms and conditions in the contract cleaning and security sectors, agreed by Joint Labour Committees, are not affected by this ruling and those terms continue to apply for existing workers as well as new entrants.
47. Deputy James Browne asked the Tánaiste and Minister for Business, Enterprise and Innovation the initiatives his Department is taking to support enterprises with significant reliance on seasonal business; and if he will make a statement on the matter. [15795/20]
View answerMy Department has developed a range of proposals which I have brought to the Cabinet Committee on Economic Recovery and Investment for consideration. These proposals, along with others from Ministerial colleagues, will be developed and adjusted further for the Government’s consideration of an ambitious stimulus package which will be announced soon.
There are some welcome signs of improvement in business activity and the economy. However, sectors that employ a lot of people, such as tourism and hospitality, arts and entertainment and other services that rely on social interaction, remain in serious difficulty and their recovery prospects are highly uncertain.
The July Stimulus needs to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. Our current Restart Grant is a help, but I recognise it has limitations which are preventing it from having a deeper and wider impact.
In improving access to finance, there is a need to not only guarantee credit but do so in a way which does not add costs to businesses unduly. As well as this, and looking to the long-term, the important area of seed and venture capital needs strengthening.
The Local Enterprise Offices are the ‘First Stop Shop’ for anyone seeking information about supports available for businesses. Located in the 31 Local Authorities Offices nationwide, the LEOs provide a ‘signposting’ service in relation to all relevant State supports available through agencies such as Revenue, the Department of Social Protection, Education and Training Boards, the Credit Review Office and Microfinance Ireland. The LEOs can also offer advice and guidance in areas such as Local Authority rates, Public Procurement and other regulations affecting business.
I would urge seasonal businesses to talk to their Local Enterprise Offices regarding the supports available as they offer advice, training and mentoring which could be extremely beneficial to a business.
The full range of Enterprise Ireland, Local Enterprise Office (LEO) and Údarás na Gaeltachta grant supports will be available to firms to help with strategies to innovate, diversify markets and supply chains and to improve competitiveness. For seasonal businesses wishing to have an on-line presence, the Local Enterprise Office trading on-line voucher is designed to assist small businesses with up to 10 employees. It offers financial assistance of up to €2,500 along with training and advice to help your business trade online. It should however be noted that it is a requirement of the scheme that a business be operational for 6 months to be eligible to apply for this scheme.
48. Deputy Christopher O'Sullivan asked the Tánaiste and Minister for Business, Enterprise and Innovation if he will consider extending the restart grant, which is administered by the local authorities, to include non-rate-paying businesses. [15763/20]
View answerThe Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet. Grant payments range from a minimum of €2,000 up to €10,000. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of Covid-19.
Using funding allocated by Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas in accordance with the criteria for the Scheme and the Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme.
The Restart Grant is just one part of a wider assistance package for business and 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. Within the funding available so far, the priority has been to assist those who have suffered most, including closure of the business, but whom will still have incurred ongoing costs.
The unprecedented circumstances of the COVID19 global pandemic has resulted in a swiftly evolving landscape for enterprises. I will continue to use all available tools at my disposal to support businesses and ensure their survival.
The grant scheme has been broadly welcomed by business owners who benefited from it. However, I am aware of certain exclusions as the application and assessment processes have been rolled out. In accordance with the Service Level Agreement between the Department of Business Enterprise and Innovation, the Local Authorities and Enterprise Ireland, a review has commenced to identify the effectiveness of the Scheme. This review is also in line with an undertaking given in the Programme for Government, to carry out a general review of the Restart Grant. This review has now commenced in my Department and will be completed shortly and form an important input to Government's considerations for the forthcoming Recovery Plan.
49. Deputy Alan Dillon asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to incentivise behaviour that supports Covid-19 national public health priorities, in particular remote working; and when the strategy for remote working to facilitate employees in working from home or from co-working spaces in rural areas will be published to support the retention of skilled young persons in rural communities. [15690/20]
View answerIn the wake of COVID19, our country is approaching a new normal. In this new normal remote work will be more important than ever. If implemented correctly, remote work can stimulate regional growth, support the transition to a greener economy, reduce business costs and improve employees’ work-life balance.
For this to be possible, the necessary supports must be in place for business and employees to reap benefits. This is reflected in research undertaken by my department on Remote Work in Ireland in December 2019. This report outlined the prevalence and types of remote working in Ireland. It also identified the influencing factors for both employers and employees.
Last week my Department launched a public consultation on remote working guidance. This consultation will help us to understand what remote working issues are most pressing for employers and employees. The submissions that we receive will allow us to identify areas where further guidance can be provided. I encourage all interested parties to take part in this consultation, the full details of which can be found on my department’s website.
The results of the consultation will be used to further refine the current remote working guidance. The insights arising from the consultation will also help to shape future policy decisions on remote working strategy. The last date for submissions for the consultation is August 7th 2020. It is expected that the remote working guidance will be completed by the end of this year.
50. Deputy Mairéad Farrell asked the Tánaiste and Minister for Business, Enterprise and Innovation if measures are being put in place to ensure that companies with sufficient cash reserves are not unnecessarily availing of Covid-19 financial support thus reducing the pool of funds available for those companies that need it. [15767/20]
View answerThe Deputy will be aware that there is a delicate balance to be struck between providing necessary survival assistance to firms and ensuring that both deadweight and displacement are avoided.
The vast majority of businesses are microenterprises, estimated at over 200,000, employing less than 10 people and certainly evidence suggests that these firms will not be in a position to meet urgent liquidity needs from their internal resources, including cash reserves without additional support.
Such assistance and the design of measures to help business, as I stated, involve delicate trade-offs in their selection and design to ensure that the overall costs do not outweigh the benefits.
The State-supported loan schemes operated by the Strategic Bank Corporation of Ireland, namely the COVID-19 Working Capital Scheme, the Future Growth Loan Scheme and Credit Guarantee Scheme and the MicroFinance Ireland (COVID-19 Business Loans), make lending available to businesses that have been negatively impacted by the outbreak of COVID-19. These are loans and must be repaid with interest. It is therefore advantageous for businesses with sufficient cash reserves to continue to operate from those reserves, rather than to avail of these supports and incur additional costs.
In relation to Enterprise Ireland and the Local Enterprise Offices, there are specific criteria laid down for each scheme of support and companies must meet these criteria to be successful in their applications.
These supports are part of the overall package of Government support measures for enterprise, and are designed to meet funding needs that cannot be met elsewhere (whether from the company itself or other funding providers).
Enterprise Ireland financial supports for COVID-19 have the objective of supporting companies impacted by COVID-19 to access liquidity and to underpin their long-term viability.
The Sustaining Enterprise Fund of up to €800k, for example, is structured to support a co-financed business stabilisation plan. There is a robust due diligence process in place. In that regard, specific criteria are examined during the application and decision-making process which include the impact that COVID-19 has had on the company and the company’s liquidity or funding need. Included are considerations as to how individual firms might respond to that impact and to rebuild the company’s financial position including the ability of the company to access funding from other sources. The proposal for funding is submitted to Enterprise Ireland’s Investment Committee which is composed of both internal members from Enterprise Ireland, external private sector members and Departmental Officials which ultimately approves the funding to the company.
For LEO grant applications, the applicants have to provide certified accounts if already in business. Their financial health, including cash reserves, is evaluated by the Local Enterprise Office Evaluation and Approvals Committee (EVAC) when considering a grant proposal. Under the assessment criteria, evaluation committees’ pay due regard to the general principle of need for necessary funding to ensure the establishment or development of the enterprise including whether there is sufficient cash available that would support a project without state support.
As stated in the Programme for Government, we will bring forward a July stimulus to assist businesses to remain open, to encourage economic growth and to help restore employment. Our focus is to support the viability of the business and enterprise sector and to get people back to work as quickly as possible in all sectors.
Helping our SMEs is central to this, given their pivotal role in the economy and employment growth. The July Stimulus will extend, enhance and add to the existing measures totalling €12bn in supports for COVID-19 impacted businesses already announced.
51. Deputy Catherine Connolly asked the Tánaiste and Minister for Business, Enterprise and Innovation if a review of the policy with regard to data centres will be undertaken in view of the fact that data centre development is projected to add at least 1.5 million tonnes to carbon emissions here by 2020 and the obligations under climate change legislation; and if he will make a statement on the matter. [15975/20]
View answerIreland has one of Europe’s largest clusters of data centres as a stable energy grid, temperate climate and significant skills base makes Ireland an attractive country for this form of investment. Data centres are an increasingly important part of the digital and communications sectors, and are core infrastructure in the remote working and digital services economy. The 2018 Government Statement on Data Centres sets out the strategic importance of data centres to Ireland’s overarching enterprise policy and their role in attracting employment and investment to Ireland within the technology sector.
Data centres are also considerable energy demand loads on our electricity grid. Ireland has an ambitious target for decarbonising our electricity supply, with the Climate Action Plan 2019 setting a target of 70% renewable electricity by 2030. The Department for Climate Action is progressing the Renewable Energy Support Scheme (RESS) and a series of capacity auctions designed to help us reach that target.
As significant electricity purchasers, data centres in Ireland can help drive the transition to renewable electricity, ensuring that the digital services they provide for society are delivered in an efficient and environmentally sustainable way. Indeed, many of the large technology multinationals with data centres in Ireland have made commitments to achieve 100% renewable energy.
Under the 2019 Climate Action Plan and the Government Statement, the Sustainable Energy Authority of Ireland are leading a working group to encourage investment in renewable electricity generation using Corporate Power Purchase Agreements (CPPA). The use of these contracts, which facilitate large energy users such as data centres to procure renewable energy directly from generators, has already begun in Ireland. The Working Group is examining what policy actions can be taken to facilitate this market and my Department is participating on this group, with engagement from the enterprise agencies. Through direct procurement of additional renewable electricity, large energy users would be contributing to meeting Ireland’s renewable electricity target.
