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Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 20 October 2020

Tuesday, 20 October 2020

Ceisteanna (126)

Jackie Cahill

Ceist:

126. Deputy Jackie Cahill asked the Tánaiste and Minister for Enterprise, Trade and Employment the financial supports available to persons that are pub owners and the sole employee of the pub in view of the increase to level three Covid-19 restrictions; and if he will make a statement on the matter. [31037/20]

Amharc ar fhreagra

Freagraí scríofa

I am keenly aware that publicans are making a massive sacrifice to protect their communities and I am committed to ensuring that the Government will offer as much assistance and support as possible.

We know the move to Level 5 will have a significant impact on businesses. In order to reduce transmission of this disease quickly we are making this decision now so we can return to a lower level of the Living with Covid-19 framework.

Budget 2021 provides a significant package of tax and expenditure measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors.

The measures in the Budget are in addition to those announced in the July Stimulus, including the Employment Wage Subsidy Scheme, the Restart Grant Plus, cash for businesses, low cost loans and commercial rates waivers.

As a result of the fact that businesses have to close, we are making changes to the PUP and the EWSS. The new payment structure for the PUP includes the increase in the top rate to €350 for those who were earning in excess of €400 per week. This change to payment rates will apply in respect of all existing and new applicants.

The EWSS is also being amended to align with the amendment to PUP, with the top payment increasing to €350 for those earning over €400.

As part of Budget 2021, the New Covid Restrictions Support Scheme (CRSS), is now operational through Revenue and offers a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels due to COVID of up to €5,000 per week.

We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the new €2bn Credit Guarantee Scheme.

We have also announced a six-month reduction in the VAT, going down from 23% to 21%, a reduction in the 13.5% VAT rate to 9% which will benefit the hospitality sector, together with a range of additional public capital investment measures to support the domestic economy.

On 28th August 2020, the Government announced a further €16m support package to help pubs, bars and nightclubs, recognising the economic impact of Covid-19 on their businesses and to assist planning and adaptation for their re-opening. This package contained measures including:

- Restart Grant Plus 40% Top Up: Those 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.

- Waiver of court fees and associated excise and stamp duties relating to the renewal of pub and other liquor licences in 2020.

- Waiver of excise duty on on-trade liquor licences on renewal in 2020.

The Restart Grant Plus provides direct grant aid to businesses with up to 250 employees to help them with the costs associated with reopening and re-employing workers following COVID-19 closures. Top-ups were previously made available for eligible businesses in Kildare, Laois, Offaly, Dublin and Donegal in respect of a further period of restrictions, for ‘wet’ pubs, bars and nightclubs nationwide that re-opened on 21 September, and for ‘wet’ pubs, bars and nightclubs in Dublin that remain closed.

Businesses in Dublin and Donegal were generally eligible for a grant top-up due to the restrictions imposed at that time. Donegal pubs remained partially open, so the pubs were entitled to an additional top-up in recognition of the restrictions imposed. Meanwhile, Dublin pubs that were forced to remain closed were entitled to a further enhanced top-up.

These supports are supplementary to the wide range of existing loan and voucher schemes available to assist businesses affected by COVID-19 provided through the July Jobs Stimulus and other Government initiatives. Further information on top-up payments and application forms for the Restart Grant Plus Scheme are available on the websites of all Local Authorities. The closing date for receipt of applications to the scheme has been extended to 31st October 2020 to ensure the scheme is accessible to as many businesses as possible.

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