Dáil Éireann Debate, Tuesday - 10 November 2020
52. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment if research has been carried out or is planned on the comparative effects of different levels of lockdown has had on small businesses and microenterprises. [35098/20]
Amharc ar fhreagra87. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that for many businesses level 3 restrictions are as financially detrimental as at level 5 restriction; his plans to protect small businesses and microenterprises in 2021 from the strategy of ongoing lifting and imposition of restrictions; and the research carried out or planned by his or another Department or agency on quantifying and segmenting the future risk to enterprises posed by continued intermittent restrictions in 2021. [35099/20]
Amharc ar fhreagraI propose to take Questions Nos. 52 and 87 together.
The COVID-19 pandemic has had an unparalleled impact on businesses across the economy although it is evident that the impacts have not been felt uniformly across all sectors or cohorts.
The PUP data which is released on a weekly basis can assist in analysing the impact of restrictions on employment and, by proxy, business. A review of changes in PUP claimants following movements between restriction levels indicates that the move from level 3 to higher levels is a significant inflection point in terms of employment changes. Less differential in the impacts on business is expected in moves between Level 5 and Level 4.
Three sectors, Accommodation and Food Services, Wholesale and Retail Trade and Administrative and Support Services, accounted for 54% of the almost 333,000 PUP claimants as of November 3rd. The impact of the move to level 5 is particularly high in the Accommodation and Food Services and Wholesale and Retail Trade sectors, with increases of 115% and 68% respectively.
Employment Wage Subsidy Scheme (EWSS) data also shows the high impact on the accommodation and food services and wholesale and retail sectors, with 30% and 11% respectively of the 341,000 employments supported by the scheme coming from those two sectors.
It is also evident that the pandemic has had a disproportionate impact on small business. Almost 95% of the 32,700 employers availing of the EWSS in September were small and micro enterprises. Small businesses and micro enterprises accounted for almost 57% of the €254m payments processed by Revenue for September. 67% have less than 10 employees and accounted for almost 20% of the subsidy paid.
A systemic approach to sustaining and growing the domestic SME sector, improving SME productivity, and building resilience in SMEs will be a key part of our forthcoming National Economic Plan delivered through an ambitious SME Growth Plan currently being developed by the SME Growth Taskforce that I chair.
