Dáil Éireann Debate, Wednesday - 20 May 2020
554. Deputy Peadar Tóibín asked the Minister for Business, Enterprise and Innovation the estimated costs to businesses for March and April 2020 with regard to Covid-19 closures and reductions in business activity; and the estimated monthly costs to businesses nationwide for May, June, July and August 2020 due to the announced restrictions. [5693/20]
Amharc ar fhreagraIt is unclear which costs are referred to in the question. Costs may include ongoing operational fixed costs, stock depreciation, opportunity costs in terms of declining revenues, costs associated with preparing workplaces to align with public health and physical distancing guidelines, and so forth. There are also of course human costs associated with the letting go of staff and reduced social contact.
These costs, and other impacts, will be contingent on the particular situation for every business and will be influenced by factors such as sectoral dimensions; the relevance and impact of current restrictions; the relevant phasing in the Government’s Roadmap for Reopening Society and Business; the adaptations made by the business, for example using e-commerce channels; the uptake of available supports; and available sub-supply and customer demand.
With so many variables, and the challenges of having timely data for same across the breadth of the enterprise base, monthly estimates are not available.
Considering the Stability Programme Update (SPU) published recently by the Department of Finance, and notwithstanding that there is a huge degree of uncertainty, it is clear that the economy has suffered a severe shock without historical precedent. Under the Department’s central scenario, GDP is projected to decline by over 10% in 2020. Some 220,000 jobs will be lost with the unemployment rate exceeding 25% in the second quarter of the year. Based on the analysis in the SPU and other detailed sectoral and labour market analysis it is clear that as of now the most-heavily impacted sectors are accommodation and food, construction, and other personal services. Other sectors where the impacts are significant but somewhat less severe include the manufacturing sector, administrative and support services, wholesale and retail trade and transport and storage. This pattern of sectoral impacts is similar to that observed in other countries. Sector where remote working is not feasible or that rely on personal contact with consumers are hugely exposed to the necessary travel and other restrictions that containment of the virus requires.
The phased reopening of the economy will see a slow return to economic activity although it is anticipated that it will take considerable time before the economy returns to the levels which pertained prior to COVID-19. Therefore, the Government will continue to focus on assisting the enterprise sector through financial and advisory supports as well as continuing to develop new measures which help address the particular challenges across enterprise sectors as they arise and as sectors reopen.
