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Covid-19 Pandemic Supports

Dáil Éireann Debate, Thursday - 28 January 2021

Thursday, 28 January 2021

Questions (8)

Mattie McGrath

Question:

8. Deputy Mattie McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to ensure business support grants will cover non-rate paying business and the self-employed given that the enterprise support grant was not an adequate or impactful grant for the loss of revenue as a result of previous lockdowns in 2020; and if he will make a statement on the matter. [4674/21]

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Written answers

The Enterprise Support Grant, introduced by my colleague the Minister for Social Protection was a one-off grant introduced to reimburse certain non-rate paying businesses who had closed due to the COVID-19 pandemic, for re-opening costs up to a maximum of €1,000. My understanding is that the grant was not intended to replace lost revenues for such businesses, but instead to help those business meet certain costs such as the provision of PPE or similar costs which arose as a result of the pandemic.

At an early stage of this crisis, it became apparent that the impacts on economic activity were going to remain with us for much longer than originally anticipated. It also became clear that many businesses were incurring costs such as rent, rates, insurances, maintenance, security and other utilities, on an ongoing basis without the ability to generate the revenues required to meet these costs.

Most of these costs are associated with the running costs of a premises, while for businesses without a fixed premises, fixed costs will likely be lower as a proportion of their total expenses. That being the case, and in line with the practice in other jurisdictions, Government has designed supports aimed at meeting these fixed costs such as the Restart Grants and the COVID-19 Restrictions Support Scheme, which require that the business operates from a commercial premises.

I acknowledge that many businesses who do not trade from a commercial premises have been severely impacted, and for those individuals and businesses, Government has already moved to provide income supports in the form of the PUP, TWSS and EWSS which are payable regardless of sector and are available to employees, sole traders and proprietary directors. Where gaps have been identified, Government has moved quickly to fill those gaps and to ensure that nobody is left behind. Indeed, amendments now allow self-employed individuals to earn up to €960 over an 8 week period and still remain eligible for the PUP.

The Deputy should also note that in the 2021 Budget, the Government allocated significant additional resources to Departments to provide help to different sectors. I would highlight the €395m provided to the Department of Transport and the €222m allocated to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.

These additional monies will go towards helping businesses, including self employed and those that are not rate paying businesses, such as through the €30m for private bus operators, €55m for a focused business scheme for strategic tourism businesses along with a €50m scheme for the live entertainment sector.

These are in addition to financial assistance and other schemes provided to businesses via Enterprise Ireland, InterTrade Ireland and Local Enterprise Offices.

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