Dáil Éireann Debate, Tuesday - 28 July 2020
79. Deputy Niamh Smyth asked the Tánaiste and Minister for Business, Enterprise and Innovation if he will review correspondence and outline the measures being put in place as part of the July stimulus package to assist a business sector (details supplied); and if he will make a statement on the matter. [18514/20]
View answerCOVID-19 has had an enormous impact on communities, businesses, families and individuals across the country. The priority of the Government remains the wellbeing of our people and communities. We are now increasing our focus on business and on getting as many people as possible back to work.
The Jobs Stimulus will help get Ireland’s businesses back on their feet and get as many people as possible back to work quickly. It is the next stage in Ireland’s response to the COVID-19 crisis, building on the extensive enterprise and labour supports already deployed. The Jobs Stimulus will build economic confidence, within public health constraints, and deliver immediate effective supports to get people back to work.
Businesses, including those in the those in the tourism and hospitality sector will be able to benefit from many of the actions within the July Stimulus including:
- A new Employment Wage Support Scheme that will succeed the Temporary Wage Subsidy Scheme and run until April 2021;
- An enhanced Restart Grant for Enterprises that will be open to more businesses with the maximum amount available increasing to €25,000 and the minimum payment doubled to €4,000. Businesses that have already accessed the Restart Grant will be eligible to apply for a top up payment. Some businesses not previously included in the scheme, such as B&Bs, will now be eligible.;
- A waiver of commercial rates for the six months to end-Sept 2020;
- The €2 billion COVID-19 Credit Guarantee Scheme that will see Government provide an 80% guarantee for a wide range of credit products from €10,000 up to €1 million up to a maximum term of 6 years;
- A package of liquidity and enterprise investment measures to help small and micro companies through additional resources for MicroFinance Ireland (MFI) and the Local Enterprise Offices including reduced interest rates on lending for micro and small businesses.
- To provide immediate cash-flow support to previously profitable companies, the early carryback of trading losses will be allowed, leading to an immediate refund of some or all of corporation tax paid;
- There will be a 6-month reduction in the standard rate of VAT from 23% to 21%, effective from the beginning of September;
- Businesses affected by Covid-19 will be able to delay payment of their PAYE and VAT debts in part of in full for a set period with no interest or penalties; and
- The interest rate applying to agreed repayments of all tax debt (where agreement has been reached prior to 30 September 2020) will be reduced to 3%.
In addition to the above, and to specifically support the badly impacted hospitality and tourism sectors, a new Stay and Spend Incentive will see any taxpayer spending over €625 on accommodation, food and non-alcoholic drinks, between October 2020 and April 2021, able to claim back €125 through a tax credit. A €10 million Restart Fund for the Tourism sector is also being introduced.
Further information on these, along with the full list of actions within the July Stimulus and how to avail of them can be found at www.gov.ie/jobsstimulus .
I have underlined that in developing the stimulus package, we must look ahead to ensuring economic recovery. The National Economic Plan, to be developed in parallel with the next Budget, will be crucial in this respect. It will go beyond the issue of business supports and set out a range of actions to be developed across Government to realise economic recovery.
