I am conscious that the economic impact of COVID-19 has not been the same across all sectors of the economy. For some sectors, especially those that require personal contact with customers, such as hospitality, it has been more difficult to adapt to social distancing requirements. We also know our young people have been disproportionally impacted by COVID-19 and we must ensure they are not left behind.
To date the Government has provided enhanced provisions economy wide totalling almost €20 billion. While these supports are wide ranging, they will by their nature be of most assistance to the most heavily impacted firms and sectors.
The July Stimulus Package was, as promised, a package of measures of sufficient scale that demonstrates the commitment this Government has to save enterprises, limit the damage to our economy wreaked by this pandemic and get our people back to work. Indeed, it is bigger in scale than most budgets and it is being deployed at speed and includes:
- A new Employment Wage Support Scheme that will succeed the Temporary Wage Subsidy Scheme and run until April 2021;
- Restart Grants of up to €25,000 available to a broad category of businesses such as hairdressers, sports clubs, cafes, restaurants, B&Bs, and independent hotels to help cover the costs incurred during closure and reopening costs;
- The ‘Stay and Spend’ initiative will see consumers benefit by up to €125 each for expenditure on hospitality activities during the traditional ‘off peak’ for this sector;
- A €10 million Restart Fund for the Tourism Sector;
- The new €2 billion COVID-19 Credit Guarantee Scheme to provide Irish businesses with access to low cost loans as they respond to the impacts of COVID-19. This is the biggest ever state-backed loan guarantee in Ireland;
- The recently reopened Microfinance Ireland Covid-19 Loan scheme; and
- Several other initiatives to provide vital liquidity to all firms who are experiencing impacts have been introduced including rates waivers, temporary VAT reductions, delayed payment of PAYE and VAT debts, in part or in full, for a set period with no interest or penalties, and the early carry back of trading losses providing immediate cash-flow support to previously profitable companies.
Recognising the economic impact of Covid-19 on pubs, bars and nightclubs, and to assist planning and adaptation for their re-opening, an additional €16 million support package for this sector was announced at the end of August. This included a 40% Restart Grant Plus Top Up for pubs, bars and nightclubs that remain closed to help them to reopen, a waiver of court fees and associated excise and stamp duties relating to the renewal of pub and other liquor licences in 2020 and a waiver of excise duty on on-trade liquor licences on renewal in 2020.
While we have, and will continue to, help our business, we are also assisting those who may have lost their jobs as a result of COVID-19 or whose jobs continue to be in a precarious position, getting staff back to work and creating new opportunities for those unable to return to their old jobs. Indeed, a €200 million investment in education and training was announced in the July Stimulus. To support people without jobs, especially young people the July Stimulus included:
- A clear timeline for the continuation of the Pandemic Unemployment Payment will help to provide assurances to those who suffered job losses;
- A new Apprenticeship Incentivisation Scheme to assist employers to continue to recruit apprentices during the immediate Covid-19 period;
- Funding for some 60,000 places in further and higher education, skills training, and work placement and experience schemes; and
- The JobsPlus Scheme that will provide subsidies to encourage employers to hire someone under the age of 30 who is on the Live Register or the Pandemic Unemployment Payment.
Having come through the initial economic shock with unprecedented levels of State intervention stabilising the economy, the focus is now on sustaining the recovery in the face of uncertainty and disruption while seeking to minimise permanent loss of economic activity and employment. As such, the next steps in our recovery journey will be mapped out in the October budget and the subsequent National Economic Plan, which I expect to be launched in November.
