Dáil Éireann Debate, Tuesday - 16 June 2020
459. Deputy Martin Heydon asked the Minister for Business, Enterprise and Innovation the analysis carried out to determine the level of supports that will be needed in the coming months for small and medium businesses; and if she will make a statement on the matter. [11512/20]
Amharc ar fhreagraI can assure the Deputy I am continually reviewing the range of supports needed by SMEs and micro enterprises in particular as the Covid-19 crisis evolves. The economic analysis undertaken by my Department has highlighted the challenges for SMEs arising from COVID-19 which have been immediate and heavily impactful on certain sectors. As highlighted in my two published reports, Economic Considerations for Reinstating Economic Activity Phase 1 and Phase 2, GDP is projected to decline by over 10% in 2020. The heightened risk of a hard Brexit at the end of 2020 could exacerbate the difficulties facing the economy and recovery prospects.
SMEs across all sectors are being impacted, with for example the Accommodation and Food sector continuing to be the hardest hit so far with over 90% of those in employment now receiving either the Pandemic Unemployment Payment (PUP) or the Temporary Wage Subsidy Scheme (TWSS). The Wholesale and Retail sector, despite large elements continuing to trade, has some 58% of employees either on the PUP or TWSS. Personal services, construction and administrative and support services have also been heavily impacted. The manufacturing sector, FDI and globally traded sectors have had less severe impacts to date. However, it is too early yet to assess the impact on global trade and, given the important of these sectors, we will continue to monitor and keep under close review.
The impact of COVID-19 on the public finances has been significant with the total value of measures introduced to date (including expenditure and liquidity) standing at over €13 billion. Around 40% of those previously in employment are still on COVID-19 related income support payments.
In responding to the challenges presented by the COVID-19 crisis, I and my Department has been actively engaged across all sectors and working closely with other government departments and a wide range of stakeholders in recent months. I chair the Enterprise Forum which comprises the main SME representative bodies including ISME, Small Firms Association and Chambers Ireland and will continue to review what new initiatives are required.
I have tailored and developed a suite of supports to help businesses impacted by COVID-19 and minimise the extent of the economic damage caused by the pandemic. I have worked collectively with my Offices, Agencies and other government bodies to achieve maximum impact. This comprehensive suite of supports involves a mix of grants, vouchers, low-cost loans and credit guarantees, all of which, when combined with other supports, such as write-off of commercial rates, wage subsidies and deferred tax liabilities, will help to improve cash flow for businesses and help them to restart, reconnect and rehire staff. The details of all schemes are set out in our Guide to Supports for Businesses, which is available on our website.
I have also developed and put in place extensive information supports from an early stage in my Department. On 13th March I established a dedicated COVID-19 Business Call Centre to assist SMEs with information on the various new and existing schemes and financial supports available. A new team, drawn from across the Department, was set up with a dedicated helpline phone number and email address. The team, all working remotely has now dealt with in excess of 5,000 calls to date across a wide range of issues. This Unit is also dealing with COVID-19 related representations and, in the week ending 5th June, have received a total of 803 reps, with 764 finalised. At an early stage, we also wrote to 230,000 companies advising them of the range of business supports on offer to assist firms in their COVID-19 response. We also published extensive information in our Guide to Supports for Businesses. This is a living document detailing the range of COVID-19 business supports and other Government supports available and we will continue to update the guide as we introduce new measures.
