Dáil Éireann Debate, Tuesday - 23 June 2020
368. Deputy Pearse Doherty asked the Minister for Business, Enterprise and Innovation if she is considering financial support packages for those in the music industry, including artists and producers, whose livelihoods have been severely impacted by Covid-19; when live music in venues can recommence, in particular small gigs in local bars and restaurants; and if she will make a statement on the matter. [11916/20]
Amharc ar fhreagra377. Deputy Pearse Doherty asked the Minister for Business, Enterprise and Innovation if she is considering financial support packages for those in the music industry, including artists and producers, whose livelihoods have been severely impacted by Covid-19; if she will provide clarity as to when live music in venues can recommence in particular small gigs in local bars; and if she will make a statement on the matter. [12060/20]
Amharc ar fhreagraI propose to take Questions Nos. 368 and 377 together.
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 Deputy will also be aware that on Tuesday 16th June 2020, An Taoiseach, Leo Varadkar and Minister for Culture, Heritage & the Gaeltacht, Josepha Madigan announced €25 million in extra supports to help the Arts and Culture sector recover from the Covid19 Emergency. The funding will include bursaries and commissions to artists and arts organisations, and resources for museums and culture workers as they prepare for the re-opening of society. The funding is on top of funding previously allocated to the sector. A total of €20 million will be allocated to the Arts Council bringing its allocation this year to €100 million. A further €5 million will be available for other measures, including securing the future of key cultural and museum spaces and facilities throughout Ireland, and the production of high-quality digital art and on-line performances.
The COVID-19 Working Capital Scheme is offered in cooperation with the Department of Agriculture, Food and the Marine, and is supported by the InnovFin SME Guarantee facility. The scheme is operated by the SBCI.
It currently makes available a fund of up to €200 million to eligible businesses that have been negatively affected by impacts arising from the outbreak of COVID-19 to enable those businesses to innovate, change or adapt in response to the current business environment. Following a further announcement, work is now under way on a significant expansion to this Scheme.
The scheme is open to eligible SMEs and small mid-caps (businesses of up to 499 employees) negatively impacted by COVID-19. Loans under the scheme range from €25,000 to €1.5m and are for periods of up to three years. The maximum interest rate under the scheme is 4% and loans of up to €500,000 are available unsecured.
The Future Growth Loan Scheme currently makes up to €300 million of loans available with a term of 8-10 years and is operated by the Strategic Banking Corporation of Ireland (SBCI) through participating lenders. We have seen strong demand for the scheme since its launch in April 2019, resulting in a rapid take up of the scheme. Funding made available by the scheme facilitates long-term, strategic investment.
The scheme is open to eligible SMEs and small mid-caps (businesses of up to 499 employees), including those in the primary agriculture and seafood sectors. Loans under the scheme range from €100,000 (€50,000 for farmers) to €3m per eligible business, with loans of up to €500,000 available unsecured. The initial maximum interest rate is capped at 4.5% for loans up to €249,999 and 3.5% for loans more than or equal to €250,000 for the first six months. These rates represent a significant saving compared with the prevailing rates that are otherwise being offered for similar loans on the market.
This scheme has been expanded by a further €200m to facilitate longer-term lending to COVID-19-impacted businesses and my Department is working through the details of this expansion and will bring this funding to market as soon as possible.
Government has agreed a new €2 billion COVID-19 Credit Guarantee Scheme and this is a further development of the existing Credit Guarantee Scheme already available. This Scheme forms a major component of the government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment. It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years. The guarantee will be able to be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less.
The Scheme will be available to all SME sectors and includes primary producers. It will also have interest rates below current market rates. The implementation of this Scheme will require primary legislation, the drafting of which has commenced.
There are a number of liquidity supports for COVID-19 impacted businesses available now, including the existing Credit Guarantee Scheme which was implemented in 2012, supporting loans up to €1 million for periods of up to 7 years. The scheme is designed to support a range of debt products appropriate to the borrowing needs of SMEs. An application to access the Credit Guarantee Scheme can be made through one of the participating lenders which are currently Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland.
Under the reconfiguration of the Government’s Roadmap for Reopening Society and Business announced on the 5th June, there are now just two remaining phases instead of three, with Phase 3 starting on the 29th of June, and Phase 4 on the 20th of July. Further work will be carried out in the coming days and weeks to determine which actions will take place in each phase. Updates to the roadmap can be found at www.gov.ie.
The Roadmap is a living document and Government has demonstrated great flexibility in its decision to accelerate the phases as set out in the original Roadmap.
The input and advice of National Public Health Emergency Team (NPHET) informed the Government’s decision to proceed with Phase 2 and to accelerate elements of the Roadmap. The Government also had regard to a paper which was developed by my Department in conjunction with the Department of Finance and the Department of Public Expenditure and Reform to provide an updated assessment of the economic impact of the COVID-19 pandemic and to identify, from an economic perspective, some priority issues for re-opening of economic activity under Phase 2. This paper, “Economic Considerations for Reinstating Economic Activity - Update for Phase 2”, is available on my Department’s website at-
https://dbei.gov.ie/en/Publications/Publication-files/Economic-Considerations-for-Reinstating-Economic-Activity-Update-for-Phase-2.pdf.
On 8th June the Minister for Health, Simon Harris T.D., signed SI No.206 of 2020, Health Act 1947 (Section 31A – Temporary Restrictions)(COVID-19)(No. 2) Regulations. These Regulations, which shall remain in operation until 29th June, provide for the unwinding of certain restrictions, including the reopening of retail outlets and extending the distance that may be travelled for specified purposes. The Regulations also provide for continued restrictions for some businesses or services and for offences, including in relation to events. Businesses should carefully review these Regulations.
Where a business is not specifically listed in SI No.206 of 2020, it should review the Roadmap and the updates carefully and carry out a detailed assessment of its activities with regard to the continuing public health measures. Businesses should, based on their assessment, identify which category in which phase of reopening they will be in a position to reopen safely and in line with the continued public health measures. It is not necessary for businesses to seek official authorisation to reopen.
The National Return to Work Safely Protocol is a useful guide for businesses in making their assessments and adapting their workplace procedures and practices to comply fully with the COVID-19 related public health protection measures. It sets out in very clear terms for employers and employees the steps that they must take firstly before a workplace reopens, and then while it continues to operate. The Protocol is available at https://dbei.gov.ie/en/Publications/Return-to-Work-Safely-Protocol.html.
The Health and Safety Authority, which is an agency of my Department, is the lead agency in overseeing compliance with the National Return to Work Safely Protocol in the workplace. If employers or employees need further guidance on the Protocol, the HSA Helpline can be contacted at 1890 289 389 or wcu@hsa.ie.
I recognise the impact that this pandemic is having on businesses right across the country. I know that employers and employees want to get back to work and I support them in that ambition, but it must be safe to do so. My Department contributed to the considerations around the phased re-opening of sectors under Phases 1 and 2 and I will work within Government to secure further details and clarity for businesses as we progress through the phases outlined in the Roadmap.
It is important to note that all decisions taken by Government on the timing of any lifting of restrictions as envisaged in the next two phases of the Roadmap will be informed by the public health advice at the time.
