Written Answers Nos. 48-59
48. Deputy John Lahart asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to assist companies that have been closed for the past number of months by way of cash injection to meet their deferred debts and deferred payments; and if he will make a statement on the matter. [16146/20]
View answerAs stated in the Programme for Government, we will bring forward a Jobs Stimulus this month to boost our economy and help restore employment. This July Stimulus will extend, enhance and add to the existing measures totalling €12 billion in supports for COVID-19 impacted businesses already announced.
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. 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 to Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas. The Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme.
The Restart Grant is, however, 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.
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.
All COVID-19 Business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate, including adaptations to the phased opening of our economy.
In that regard, while the Restart Grant scheme has been broadly welcomed by business owners who benefited from it, I am aware of certain exclusions as the application and assessment processes have been rolled out. In line with an undertaking given in the Programme for Government, my Department is carrying out a general review of the Restart Grant. This will be completed shortly and form an important input to Government's considerations for the forthcoming July Stimulus package.
I can assure the Deputy that I will continue to work with my colleagues across Government and all stakeholders to examine how best to further assist businesses impacted by COVID-19.
Full details on all COVID-19 measures for business are available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
49. Deputy John Lahart asked the Tánaiste and Minister for Business, Enterprise and Innovation if he will ensure there will be no delay in payments to SMEs such as the employee assistance scheme in order to ensure SMEs can continue to pay their staff on a regular basis; and if he will make a statement on the matter. [16147/20]
View answerOn 5 June, the Temporary Wage Subsidy Scheme was extended by the then Minister for Finance and Public Expenditure and Reform to 31 August 2020. Businesses re-opening, who were not previously registered for the scheme, can now apply to join the scheme, provided they meet the relevant eligibility criteria.
The Temporary Wage Subsidy Scheme will be available to employers who keep employees on the payroll throughout the COVID-19 pandemic, meaning employers can retain links with employees for when business picks up after the crisis. Additionally, the operation of the scheme will reduce the burden on the Department of Employment Affairs and Social Protection (DEASP) which is dealing with the other COVID-19 employee assistance related payments.
Detailed information in relation to operating the TWSS can be found on the Revenue website.
50. Deputy John Lahart asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to continue the business continuity voucher, which has expired and was beneficial to SMEs; and if he will make a statement on the matter. [16148/20]
View answerIn response to recognised business needs at that time, the Business Continuity Voucher (BCV) scheme was launched on 26th March last. The BCV Scheme 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. 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, the product of it being an appropriate support for that point in time.
As the reopening of the economy continues apace, more and more businesses are transitioning from the planning to the implementation phase. It is in this context that the BCV was phased out and superseded by the new €250m Restart Grant which was introduced to assist micro and small businesses with the costs associated with reopening and re-employing workers following COVID-19 closures.
The Restart Grant is available to businesses with a turnover of less than €5m 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.
In terms of business continuity planning, Enterprise Ireland's Lean Business Continuity Voucher is available to SMEs employing 10 or more in the manufacturing or internationally traded service sectors. This Voucher allows them to access up to €2,500 in training or advisory services support related to the continued operation of their businesses during the current pandemic.
The voucher allows companies to access external independent experts in areas such as:
- Business strategy, in light of the changing marketplace/supply chains and customer needs
- Physical changes to the layout of operations, where the need to maintain a safe distance can be challenging
- Process re-engineering, where health and safety requirements dictate changes to existing processes
My focus since I took up my new role has been on the July Stimulus Package which is aimed at supporting the viability of the business and enterprise sector and to get people back to work as quickly as possible in all sectors. The current supports are being reviewed as part of that.
In that regard, my 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.
Importantly, the July stimulus we are developing will aim to assist business to reopen and to sustain employment and to strategically position our economy and firms to meet future challenges.
I look forward to announcing the details shortly.
51. Deputy Donnchadh Ó Laoghaire asked the Tánaiste and Minister for Business, Enterprise and Innovation the legal protections to ensure that companies based primarily abroad do not engage in tactical liquidations of entities here in order to prevent employees receiving their full entitlements; his views on whether this is applicable in the case of a company (details supplied); and if further actions to protect such workers either via legislation or otherwise are being explored. [16171/20]
View answerThe case in question is a court-supervised liquidation, subject to oversight of the High Court and accordingly is sub judice.
The procedures for liquidations are set out in Part 11 of the Companies Act 2014. In general terms, a company is permitted to initiate a winding up where it has complied with the requirements of the Companies Act 2014. A company, both during normal operation and in a winding up process, must also of course abide by all relevant legal requirements including in relation to the treatment of employees and creditors and disclosure to Revenue.
However, the provisions of the Companies Act 2014 provide safeguards to prevent the abuse of the liquidation system. These include preferential payments under section 621 which provide for categories of employee entitlement such as wages owed, holiday remuneration, superannuation benefits, ill health payments and social welfare contributions.
An insolvent company is defined by the Companies Act 2014 in section 818 as a company that is unable to pay its debts, and this is further defined in the Act.
Therefore, insolvency cannot be merely asserted: insolvency is defined in the legislation and scrutinised in the courts.
The Companies Act 2014 also provides provisions which may be utilised by liquidators or creditors of an insolvent company in appropriate cases, including section 608, regarding the court power to order return of assets which have been improperly transferred; and section 599 where a related company may be required to contribute to debts of company being wound up. A range of factors will be involved for liquidators or creditors in deciding whether to pursue litigation based on these provisions of the Companies Act 2014. Such statutory provisions and the associated civil and criminal penalties also provide an important deterrent effect.
In addition, the liquidator of an insolvent company must report to the Office of the Director of Corporate Enforcement (ODCE) on its demise and must also apply to the High Court for the restriction of each of the directors of the company, unless they are relieved of that obligation by the ODCE.
When it comes to workers, 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 this legislation is currently the responsibility of my colleague the Minister for Employment Affairs and Social Protection, it will shortly transfer to my Department as part of a wider transfer of functions Order.
In relation to redundancy entitlements it is the responsibility of the employer in the first instance to pay statutory redundancy and other wage related entitlements to eligible employees. However, the Social Insurance Fund, under the Department of Employment Affairs and Social Protection provides a safety net for employees in situations where the employer cannot pay due to financial difficulties or insolvency.
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;
- Review the Companies Act with a view to addressing the practice of trading entities splitting their operations between trading and property with the result being the trading business (including the jobs) go into insolvency and the assets are taken out of the original business;
- Examine the legal provision that pertains to any sale to a connected party following the insolvency of a company including who can object and the allowable grounds of an objection.
As part of its next Work Programme, I will be requesting the Company Law Review Group to examine these Programme for Government commitments.
52. Deputy Matt Shanahan asked the Tánaiste and Minister for Business, Enterprise and Innovation the timeline for the appointment of the SME recovery task force; if relevant small and local business representative bodies will be consulted in the process; and if he will make a statement on the matter. [16216/20]
View answerThe Programme for Government identifies a number of groups which will be led by Government in shaping the engagement of enterprise and SMEs in the formulation of the policy responses at the different stages of the recovery. These include an SME Growth Taskforce, a time limited body that will design a National SME Growth Plan mapping out an ambitious long-term strategic blueprint beyond COVID-19. This Plan will be brought to Government for approval as part of the National Economic Plan in October.
The work of the Taskforce will be informed by the comprehensive OECD Report on SME and Entrepreneurship Policy in Ireland which was finalised in October 2019. This provides a hugely informative, objective, and deeply-researched evidence base with which to guide the development of the SME Growth Plan.
I will announce the membership of the Taskforce in the coming weeks, which will contain representation from stakeholders with the capacity and expertise to progress work on thematic areas arising from the OECD’s recommendations and the challenges presented by the COVID-19 Pandemic. This will include participation from organisations representing small and local businesses.
53. Deputy Matt Shanahan asked the Tánaiste and Minister for Business, Enterprise and Innovation if the July stimulus package provides for the appointment of the SME task force; if the task force will include small and local business representatives; and if he will make a statement on the matter. [16217/20]
View answerThe Programme for Government provides for measures to assist in the formulation of policy responses at different stages of the recovery. These include the formation of an SME Growth Taskforce, a time limited body that will design a National SME Growth Plan mapping out an ambitious long-term strategic blueprint beyond COVID-19. This Plan will be brought to Government for approval as part of the National Economic Plan in October.
The work of the Taskforce will be informed by the comprehensive OECD Report on SME and Entrepreneurship Policy in Ireland which was finalised in October 2019. This provides a hugely informative, objective, and deeply-researched evidence base with which to guide the development of the SME Growth Plan.
I will announce the membership of the Taskforce in the coming weeks, which will contain representation from stakeholders with the capacity and expertise to progress work on thematic areas arising from the OECD’s recommendations and the challenges presented by the COVID-19 Pandemic. This will include participation from organisations representing small and local businesses.
54. Deputy Matt Shanahan asked the Tánaiste and Minister for Business, Enterprise and Innovation the status of the July stimulus package; if relevant small and local business representative bodies will be consulted; and if he will make a statement on the matter. [16218/20]
View answerSince 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.
My 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 shortly.
The July package will be followed in October by the National Economic Plan to be published on the same day as the Budget. The National Economic Plan will chart out our longer-term, jobs-led recovery.
I expect the Economic Plan will include a major reskilling programme, policies to promote balanced regional development and it will emphasise the importance of attracting and sustaining Foreign Direct Investment.
I understand the critical role SMEs must play in the national recovery and I welcome all suggestions and inputs such as from those bodies referred to by the Deputy. The Government listens carefully to all such suggestions and will consider them as we develop responses to the crisis and put our economy on the path to recovery. Indeed, I understand that my colleagues Minister English and Minister Troy have already engaged stakeholders in this regard and responses will influence the shape of the July Stimulus Package and the development of the National Economic Plan.
The new Government’s job over the coming weeks and months is to help businesses get back on track in every way we can. I have every confidence that a radical and far-reaching July Stimulus Package will help to set our businesses and our economy on the right course for the future.
On Friday last, I jointly chaired with Minister for Finance, Paschal Donohoe TD, the first meeting of the new SME and State Bodies Group focusing on the July Stimulus Package.
The SME and State Bodies Group, which was set up under a commitment in the Programme for Government, includes the main national business organisations representing SMEs and a wide range of State bodies that are responsible for designing and distributing business supports. The meeting was also attended by Minister of State Damien English TD and Minister of State Robert Troy TD.
The meeting provided a valuable opportunity to discuss the possible supports and interventions that Government can provide that could have a beneficial impact on small and medium businesses as our economy reopens.
Additionally, a new SME Growth Taskforce will be formed with representation from a wide range of business representative bodies and enterprise agencies. I will announce the membership of the SME Growth Taskforce in the coming weeks, and it will be a time limited body with its work concluding in advance of the National Economic Plan.
55. Deputy Matt Shanahan asked the Tánaiste and Minister for Business, Enterprise and Innovation the measures he plans to introduce as part of the July stimulus package; and if he will make a statement on the matter. [16219/20]
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 shortly.
It would be inappropriate to set out now the details of the proposals but I can assure the Deputy that the Government will not be found wanting. Not only must we overcome the current challenges, but we must also look ahead.
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. While it may not be possible to keep every firm and job alive, I believe our emphasis should still be to protect jobs insofar as we can.
I see five areas which we should focus on in helping our enterprises in the future:
1. Continued support for employment through an extended wage subsidy scheme
2. Direct grants for businesses
3. Cheaper finance
4. New opportunities for future jobs
5. Support for the hardest hit sectors
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.
While I have emphasised the importance of preserving existing firms and jobs, the July 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 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 and help them transition to a low carbon future.
I look forward to the announcement of details shortly.
56. Deputy John Lahart asked the Minister for Communications, Climate Action and Environment his plans to continue the trading online voucher, which has expired and was beneficial to SMEs; and if he will make a statement on the matter. [16148/20]
View answerThe Trading Online Voucher Scheme is managed by my Department and delivered nationwide in partnership with the Department of Enterprise, Trade and Employment, the Department of Media, Tourism, Arts, Culture, Sport and the Gaeltacht, Enterprise Ireland, the 31 Local Enterprise Offices and Údarás na Gaeltachta. The Scheme offers skills training, mentoring and a grant of up to €2,500 to help small and micro-businesses to develop their ecommerce capability.
The Scheme was launched nationally in mid-2014. By end 2019, some 6,400 small and micro businesses had completed, or were in the process of completing their trading online projects. In addition, 19,000 or so business owners-managers had benefitted from advice and peer-to-peer support through their participation in the information seminars delivered by the Local Enterprise Offices under the Scheme.
In response to Covid-19, funding for the Scheme in 2020 was increased from €2.3m to €19.8m, and new flexibilities were introduced 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.
There has been high demand for the Scheme and my Department in liaison with the Department of Enterprise, Trade and Employment and Enterprise Ireland is working with the LEO network to address that demand. The Scheme remains open for applications. Funding for the Scheme is kept under review.
57. Deputy Joe Carey asked the Minister for Communications, Climate Action and Environment the lead Department in fulfilling the commitment in the programme for Government to invest in infrastructure, including broadband and waste. [16232/20]
View answerAs Minister for Communications, Climate Action and Environment, my role with regard to waste management is to provide a comprehensive legislative and waste policy framework through which the relevant environmental regulatory bodies, including local authorities and the Environmental Protection Agency, operate.
In this context I will soon be bringing forward an ambitious new waste policy which will include a range of measures to reform and strengthen how we manage our waste with a greater focus on prevention through product design and consumer choice.
I also have responsibility for telecommunications policy and for delivery of the National Broadband Plan. Regulation of the telecommunications sector is a matter for ComReg, the independent telecommunications regulator; corporate governance of ComReg comes within the remit of my Department.
58. Deputy Cathal Berry asked the Minister for Communications, Climate Action and Environment the number of staff employed by the National Cyber Security Centre in each of the years 2018, 2019 and to date in 2020; and if he will make a statement on the matter. [16249/20]
View answerThe National Cyber Security Centre, or NCSC, which is located within my Department, is the primary cyber security authority in the State, and has a number of roles, including leading on cyber security incident response and on the resilience and security of critical infrastructure. The National Cyber Security Centre had 21 staff in 2018, 23 in 2019 and has 24 to date in 2020, with a further staff member to join in the coming weeks.
The NCSC contains the State’s Computer Security Incident Response Team, or CSIRT. This is the body that responds to the full range of cyber security incidents in the State. The CSIRT has international accreditations and operates its own, purpose built, secure incident response software environment. Since its foundation in 2011, the CSIRT has developed significant expertise in managing cyber security incidents, and now handles in excess of 2,000 incidents every year. The CSIRT has also developed and deployed the Sensor platform across Government Departments, and the deployed Malware Information Sharing Platforms (MISPs) across a range of critical infrastructure operators.
The NCSC also a set of statutory powers in terms of ensuring that critical infrastructure operators maintain and operate that infrastructure in a secure manner. To date, 67 Operators of Essential Services have been designated. The Compliance Team in the NCSC has been working with these entities to improve their security since 2018, and formal audits will start in Quarter 3 of this year.
The Programme for Government commits to the implementation of the 2019 National Cyber Security Strategy in full. This Strategy includes a number of measures designed to ensure that our level of preparedness remains appropriate to likely future threats.
59. Deputy James Browne asked the Minister for Communications, Climate Action and Environment if the introduction of the 2019 online safety media regulation Bill will be prioritised. [16071/20]
View answerThe enactment of the proposed Online Safety and Media Regulation Bill is a commitment in the Programme for Government.
The proposed Bill will establish a multi-person Media Commission, including an Online Safety Commissioner, dissolve the Broadcasting Authority of Ireland, establish regulatory frameworks for online safety and the regulation of audiovisual media services, and transpose the revised Audiovisual Media Services Directive.
The regulatory framework for online safety will be overseen by the Online Safety Commissioner. The Commissioner will have the power to designate online services for regulation and to create and enforce binding online safety codes. These will seek to minimise the availability of harmful online content through oversight of the systems that online services used to deliver and moderate content. The regulator will have the power to sanction non-compliant online services.
The General Scheme of the Online Safety and Media Regulation Bill was approved by Government on 9 January 2020 and subsequently published on 10 January 2020. At that time the Government also approved the detailed drafting of the proposed Bill by the Office of the Attorney General and forwarded the General Scheme to the Joint Oireachtas Committee for Communications, Climate Action and Environment for pre-legislative scrutiny. Due to the dissolution of the Dáil and Committees in January, pre-legislative scrutiny has not yet commenced. Engagement with the AGO is continuing on the detailed drafting of the Bill.
The finalised General Scheme will also be notified to the European Commission for a technical conformity assessment with relevant EU law regarding regulations on online services.
Responsibility for media and broadcasting, including the proposed Bill, is being assigned to the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht.
