Dáil Éireann Debate, Thursday - 26 November 2020
66. Deputy Barry Cowen asked the Minister for Finance the number of businesses in counties Offaly and Laois that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39197/20]
View answerMy question relates to the scheme to support businesses and self-employed people who trade from a premises impacted by level 3 plus restrictions. The scheme is very welcome and is another example of the expensive but necessary financial interventions that have been made by Government. I would appreciate if the Minister could relate the details of the uptake of the scheme, including applications made and awards afforded, in my constituency of Laois-Offaly.
I thank the Deputy for recognising the value of the CRSS. I will comment first on its national performance, after which I will provide the information requested by the Deputy in respect of his constituency.
The registration system for the CRSS was released by Revenue on 1 November. Up to 26 November 2020, 10,200 businesses had registered for the scheme in respect of 11,100 business premises. Revenue has informed me that a further 3,700 applications are being processed. To put those figures in context, at the very early stage of implementation of the employment wage subsidy scheme, EWSS, there were 22,000 employers registered. The eligibility criteria for the CRSS are a lot tighter than for the EWSS because the former requires a business either to be closed or to have a very low level of trading.
In regard to the Deputy's constituency, as of 23 November, there were approximately 100 businesses registered for the CRSS in County Offaly and a further approximately 100 businesses registered in County Laois.
I thank the Minister for his response on the state of play nationally, as well as in my constituency. I ask him to consider to consider a situation that has arisen in recent weeks. I received a representation from a hotel in my constituency. Unfortunately, many hotels, restaurants and pubs cannot meet the payment demands of suppliers. Yes, they are gladly availing of the schemes the Minister mentioned, such as the temporary wage subsidy scheme, rates breaks and the Covid restrictions support scheme, but they still have many issues in respect of bank and lending repayments because of liens against properties. It appears to restrict banks in approving or granting funds under the Government's guarantee scheme, which it had been hoped would be used to assist in the payment of suppliers. However, as a result of them not being able to access those funds, this is leaving them at a loss as well. It is an anomaly that sees some businesses, and definitely suppliers, exposed. I ask the Minister to consider a similar scheme to the one he alluded to earlier for suppliers to this sector.
I can give the Deputy further information about his constituency in the context of how the counties are drawing down the other supports he mentioned. Looking at Offaly and Laois collectively, there are now 379 employers participating in the employment wage subsidy scheme. There are 4,056 employees of those 379 employers participating in the scheme. I raise that because that is the other way in which we are trying to help, for example, the suppliers to whom Deputy Cowen refers. In terms of expanding the eligibility for the CRSS programme to include people who are indirectly affected by Covid-19 but not forced to close their premises, the CRSS is designed to support businesses that are broadly closed. I hope that the employment wage subsidy scheme is of help to the suppliers of whom the Deputy spoke. Of course, the greatest help we could give to them is to have their customers open and trading, whereby they are in a position to trade with them as normal.
Many of my constituents involved in businesses that have been severely impacted by the restrictions greatly appreciate and acknowledge the commitment the Government has made in its response to the pandemic by virtue of the massive amount of funding being pumped into business to give businesses an opportunity to be in a position to take advantage of the uplift if and when the restrictions are eased, and we hope that will be very soon. I have been in touch with the Department and officials specifically in respect of the issue that has arisen as a result of the banks' failure to acknowledge the commitment one would have expected to materialise by virtue of the guarantee scheme being in place. It is due to restrictions they believe impact their ability to make funds available because of liens that may exist on properties where this trading is taking place. That is creating the anomaly or gap I mentioned whereby businesses are not able to meet the demands of suppliers, which threatens both entities and was never the intention of everybody concerned.
I thank the Deputy for raising this matter. A similar matter was raised with me yesterday in the Dáil. The employment wage subsidy scheme, in particular, is supporting businesses that have every prospect of being viable again in the future. We all hope that opportunity for viability will come sooner rather than later. That is why implementing public health guidance is so important. I recently met all the CEOs of the banks, as I regularly do. It would be helpful if Deputy Cowen would give me the details of the business he referred to, if that business is comfortable with sharing the details with me, and I will follow up on the matter. I have every confidence the schemes we have in place are making a difference to supporting employers in a tough time. For example, the banks have informed me that they will treat mortgage applications on a case-by-case basis, and being on an employment wage subsidy scheme should not disbar somebody from getting a mortgage. It should not in general terms, but it has to be examined case by case. If Deputy Cowen gives me the information, I will follow up on the matter.
