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Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 14 July 2020

Tuesday, 14 July 2020

Ceisteanna (74)

Brendan Smith

Ceist:

74. Deputy Brendan Smith asked the Tánaiste and Minister for Business, Enterprise and Innovation if he will give consideration to the issues raised in correspondence (details supplied); and if he will make a statement on the matter. [15081/20]

Amharc ar fhreagra

Freagraí scríofa

As Tánaiste and Minister for Enterprise, Trade and Employment, 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.

Horizontal supports that are applicable to the Retail Sector include the Working Capital scheme, Future Growth Loan Scheme, COVID-19 Loan from MicroFinance Ireland and the SME Credit Guarantee Scheme. 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.

The objective of the COVID-19 Online Retail Scheme - a competitive scheme, administered on my Department's behalf by Enterprise Ireland, is to support companies in the indigenous retail sector who have already started an online journey, to further enhance and strengthen their online presence, 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 proposed 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 be an indigenous retailer, employing 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.

Under the first call of this scheme I recently announced that 183 retailers will receive funding of between €10,000 and €40,000 under the COVID-19 Online Retail Scheme competitive call totalling €6.5 million. The second call is due to open in the coming weeks.

This Scheme is not about taking the first steps; it is about raising the bar, in an informed, planned and strategic way. Further details on this Scheme available at https://dbei.gov.ie/en/What-We-Do/Business-Sectoral-Initiatives/Retail-Sector/COVID-19-Online-Retail-Scheme/

In addition, there was a major expansion of the Trading Online Voucher Scheme to help small and micro enterprises, with up to 10 employees, including those in the retail sector, to get online quickly.

The Trading Online Voucher Scheme is being expanded by €14.2m after the Local Enterprise Offices received 3 years’ worth of applications in 3 months following the outbreak of COVID-19 in Ireland. Following a previous expansion of the Scheme in early April, total additional funding for the Scheme is now almost €20m in 2020.

Under the Scheme, small businesses can claim up to €5,000 in two vouchers worth €2,500 each. The Scheme also facilitates subscriptions to low-cost online retailing platform solutions to quickly establish a retailing presence online. Further details about the expanding Trading Online Voucher Scheme are available at https://www.localenterprise.ie/Discover-Business-Supports/Trading-Online-Voucher-Scheme-/

I am committed to supporting the needs of the retail sector in developing their online capability and enhancing their competitiveness.

In addition to the above, my Department has developed a range of proposals which I have brought to the Cabinet Committee on Economic Recovery and Investment for consideration. These proposals, along with others from Ministerial colleagues, will be developed and adjusted further for the Government’s consideration of an ambitious stimulus package which will be announced soon.

My colleague Damien English, TD, Minister of State with responsibility for Business, Employment and Retail is chair of the Retail Forum and he will continue to liaise with the retail sector during this challenging time.

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