Dáil Éireann Debate, Thursday - 16 July 2020
47. Deputy Richard Bruton asked the Tánaiste and Minister for Business, Enterprise and Innovation the options under consideration for viable businesses to achieve a work out of debts or rents that might overwhelm them during the slow restart phase. [16361/20]
Amharc ar fhreagraThe Government has already committed to a €12 billion package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment - available to the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
As businesses are reopening, what is now needed is a plan of sufficient speed and scale to restore confidence and growth in the SME sector. The July Stimulus Package, as promised in the Programme for Government, will do this. It is radical, far-reaching and will save jobs, create new ones, and get our people back to work.
I see five areas which we should focus on in helping our enterprises in the future:
1. Income support
2. Direct grants for businesses
3. Cheaper finance
4. New opportunities for future jobs
5. Support for the hardest hit sectors
The July Stimulus Package needs to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. Our current Restart Grant is a help but I recognise it has limitations which are preventing it from having a deeper and wider impact.
I look forward to announcing the details of the July Stimulus Package with the Taoiseach shortly.
Looking beyond the immediate response to COVID-19, I intend to form an SME Growth Taskforce shortly. This group will contribute to the delivery of a National SME Growth Plan, which will map out an ambitious long-term strategic blueprint beyond COVID-19. This Plan will be brought to Government for approval as part of the National Economic Plan in October.
My officials continue to give the matter of commercial rents consideration. Several interdepartmental discussions have taken place and there has been engagement with a range of stakeholders on this matter. My officials have reflected on the different responses in other countries to explore possible options to address the issues involved.
Commercial leases are a matter for the parties involved. Many landlords are engaging positively with their tenants and showing forbearance but, at the same time, I have heard reports of some landlords being less accommodating. It is clear landlords and tenants need to talk to each other and come to some arrangement, as it is in everybody’s interest that terms are amicably agreed. To help with this, there is a commitment in the new Programme for Government to “Create a code of conduct between landlords and tenants for commercial rents” as one of the immediate actions. My officials will in the coming weeks be consulting with a range of stakeholders to draw up this Code of Conduct which I hope will be welcomed by the various representative groups and bodies as well as individual firms.
