Dáil Éireann Debate, Tuesday - 8 September 2020
96. Deputy Brendan Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will consider the issues pertaining to his Department raised by an association (details supplied); and if he will make a statement on the matter. [22618/20]
Amharc ar fhreagraIn the context of the continuing advice from NPHET that pubs that do not serve food should remain closed, the Government nevertheless accepts that there are ongoing costs that pubs face over and above those of other businesses. In that regard the Government introduced a range of measures to support pubs, bars and nightclubs that were announced on 28th August which amounts to a further €16 million support package, recognising the economic impact of Covid-19 on their businesses and to assist planning and adaptation for their re-opening.
This €16 million package is in addition to the range of measures announced for businesses, including pubs, in the July Stimulus Package, which is a substantial financial package to stimulate our economy worth more than €5 billion, with an additional €2 billion in loan guarantees.
Those pubs, bars and nightclubs that remain closed to help them to reopen will now receive 40% top-up to the Restart Grant Plus. Therefore, businesses remaining closed and planning their re-opening can now receive a minimum of €5,600 and a maximum of €35,000 under the Restart Grant Plus. This can be used to help additional expense and adaptations associated with re-opening when the time comes.
Further measures include:
Waiver of court fees and associated excise and stamp duties relating to the renewal of pub and other liquor licenses in 2020.
Waiver of excise duty on on-trade liquor licenses on renewal in 2020.
These measures are in addition to the existing Restart Grant Plus, Tourism Adaptation Fund, the wage subsidy scheme, commercial rates waiver, liquidity supports and tax measures (such as warehousing of tax debt and reduction in VAT).
As regards liquidity measures, such as the COVID-19 Loan Scheme by Microfinance Ireland, I am aware that many small businesses are reluctant to take on debt, but would nevertheless emphasise that the terms and conditions of these loans are significantly more favourable to small business borrowers than loans from commercial banks. The fact that the first of these loan schemes is now fully subscribed and a second loan scheme has been launched attests to the fact that many small business owners are aware of these favourable conditions.
I launched the new Credit Guarantee Scheme on Monday of this week, which is part of the Government’s suite of supports for businesses that have been negatively impacted as a result of the outbreak of COVID-19 in Ireland, the COVID-19 Credit Guarantee Scheme will facilitate up to €2 billion in lending to eligible businesses.
The Scheme offers a partial Government guarantee (80%) to participating finance providers against losses on qualifying finance agreements to eligible SMEs, small Mid-Caps and primary producers.
It is designed to incentivise participating finance providers to continue to play their role in supporting the availability of additional liquidity to Irish businesses.
Loans under the Scheme range from €10,000 to €1 million, for terms of up to five-and-a-half years. Financing will be offered through a range of products, including term loans, working capital loans and overdrafts. Loans of up to €250,000 under the Scheme are available unsecured (except where this is a requirement of the product feature, as in the case of asset finance, invoice discount facilities, etc).
The Government will continue to work with representative organisations and sectorial interests on finding solutions which conform with public health guidelines.
