Dáil Éireann Debate, Wednesday - 27 May 2020
459. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation the financial supports that will be provided to the retail sector, particularly smaller scale businesses, to resume trading in view of current economic difficulties and the growth in online international business and its impact on smaller retail businesses; and if she will make a statement on the matter. [8012/20]
Amharc ar fhreagraAs Chair of the Retail Consultation Forum, I am acutely aware that Covid-19 has brought particular challenges for retailers - large and small, across the country.
In order to assist businesses to address the challenges posed by COVID-19, the Government has put in place a comprehensive suite of supports for firms of all sizes, which includes the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities. These supports are designed to build confidence, to further assist businesses in terms of the management of their companies and to allow them to begin looking to the future and start charting a path forward for weeks and months ahead. For a full list of supports for business please see https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
The growth in demand for shopping online domestically and globally is driving the retail sector more broadly to develop its online capability in order to enhance its competitiveness. Trading online is a very important route for retail businesses to grow and improve their business in the current crisis and will be an important element in their recovery over the longer term. In April of this year I increased support for two online trading initiatives to a total of €7.6m: Trading Online Vouchers for micro enterprises in partnership with the Minister for Communications, Climate Action and the Environment, Richard Bruton TD; and a special Covid-19 Online Retail Scheme for indigenous retailers with 10 or more employees administered by Enterprise Ireland.
Firstly, in conjunction with Minister Bruton's Department of Communications, Climate Action and the Environment, I have increased support for the Trading Online Voucher Scheme which is available to all micro enterprises with less than 10 employees, including those in the retail sector through the Local Enterprise Office network nationwide. The €2,500 Trading Online Vouchers are a key government grant to help small and micro enterprises, with very limited or no e-commerce presence, to get online, boost their sales and reach new markets – particularly during this difficult period, when so many small businesses are closed to the public. However, the value of the Trading Online Voucher will stand to businesses for years to come, boosting revenue, and helping sustain and create jobs into the future.
The Voucher can be used towards adding payment facilities or booking systems to websites or developing new apps for customers, with co-funding from the business currently set at just 10 percent. The Voucher can also be used towards subscriptions to low-cost online retail platform solutions to help companies quickly establish a retailing presence online. Training and further business supports are also provided along with the Scheme. Flexibilities to the Trading Online Voucher scheme are now in place allowing businesses apply for a second voucher where they have successfully utilised their first one, which brings the overall total voucher amount available up to €5,000 for each eligible business. Further details about the expanding Trading Online Voucher Scheme are available at https://www.localenterprise.ie/Discover-Business-Supports/Trading-Online-Voucher-Scheme-/
The Covid-19 Online Retail Scheme is complementary to the Local Enterprise Offices (LEOs) Trading Online Voucher Scheme. The objective of the Scheme, administered by Enterprise Ireland, is to support companies in the indigenous retail sector which have started an online journey, which will have the most immediate impact enabling them to respond to both domestic and international consumer demand with a competitive online offer.
My Department has introduced this Scheme in response to the COVID-19 crisis and the urgent need for retail companies to achieve a step change in online capability. Applicant companies must employ 10 or more people, have an existing online presence (e.g. website or social media), and have a retail outlet through which they derive the majority of their revenue. Successful applicants will be awarded funding to support a maximum of 80% of the project costs. Grants ranging from €10,000 to €40,000 will be awarded under the competitive scheme.
This Scheme is not about taking the first steps; it is about raising the bar, in an informed, planned and strategic way. The total fund size will be up to €2 million under this call. Further details on this Scheme available at https://www.enterprise-ireland.com/en/funding-supports/online-retail/online-retail-scheme/online-retail-scheme.html.
On 8th May the Government agreed details of a further support which will give direct grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures. The Restart Grant will be available to businesses with a turnover of less than €5m and employing 50 people or less, which were closed or impacted by at least a 25% reduction in turnover out to 30th June 2020. It is a contribution towards the cost of re-opening or keeping a business operational and re-connecting with employees and customers. The grants will be equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.
If a company is currently in a rateable premise but was not rate-assessed in 2019 it is still eligible to apply. The local authority can pay the grant based on an estimate of what the rates demand for 2019 would have been. Applications for the Restart Grant can be made online directly to local authorities and further information is available on the application form. If there are queries that are not on the application form, businesses can contact the Business Support Unit in each local authority.
All information including the application form will be available on the local authority website, the details of which are at the following link: https://www.gov.ie/en/publication/942f74-local-authorities/.
I am committed to supporting the needs of the retail sector at this time and in developing their online capability and enhancing their competitiveness.
Finally, it is important that all businesses check https://www.gov.ie/en/campaigns/c36c85-covid-19-coronavirus/ for the latest information, public health advice and guidelines from Government in relation to Covid-19.
