Large gaps in Government supports will see Longford businesses continuing to struggle

While Deputy Joe Flaherty has welcomed a number of initiatives announced this morning aimed at helping businesses to resume their enterprises over the coming months, his party colleague in Longford/Westmeath Robert Troy felt the measures didn't go far enough.

Deputy Flaherty said: “On the back of yesterday evening’s roadmap it was important  to see the government outline a series of supports this morning aimed at kickstarting local businesses.”

He has welcomed a focus on small and medium enterprises and said he would be hope that as many local businesses as possible can access a new restart grant scheme.

Deputy Flaherty explained: “Local businesses will be able to access a  max €10,000 restart grant. Details being finalised but basically it will be based on a waiver / rebate for the rates which your business paid for 2019 and will not exceed €10,000 for any business.”

He and many local businesses are reassured to see absolute confirmation that commercial rates are definitely frozen for a three month period from March 27.

For the larger businesses and enterprises there’s the €2bn Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund (ISIF), which will make capital available to medium and large enterprises on commercial terms.

The Longford based TD also welcomed an assurance that Longford County Council will not have to cut services in order to make good on any shortfall from rates receipts.

He said: “Crucially for Longford and all local authorities, a  commitment to make up the rates shortfall, so that local authorities can continue provide full services to the public.”

Meanwhile, Fianna Fáil Spokesperson on Business, Enterprise & Innovation Robert Troy says many businesses will continue to struggle after the COVID-19 pandemic because the government has failed to address a range of very serious issues facing business across the country.

Deputy Troy said, “While the measures unveiled today will provide some relief for businesses, they do not tackle the very urgent need to address the high interest rate being charged on government loans, business interruption insurance and rent payments.  These are three of the biggest issues that business owners are facing and they are warning that unless these are tackled, many of them will not see it though to Christmas.

“I have been listening to and working with business owners since these restrictions were implemented and three of the main issues that came up time and again was access to low interest loans, insurance and rent.  And unfortunately, today’s government announcement does little to address any of these.

“Today’s measures do not address the high interest rate that the government is charging on its microfinance and loan guarantee schemes.  These offer rates of around 4%; despite the fact that government can borrow at rates of less than 0.25%.  Small and medium businesses are paying the price at a time when they cannot afford to.

“Both the Minister for Finance and the Minister for Business have completely failed to deal with the issue of business interruption cover.  They have adopted a hands-off approach to the insurance industry and shops, cafes, restaurants and other businesses are not receiving any sort of compensation from their insurers despite having full business interruption cover. The situation is scandalous.

“Today’s announcement also failed to give any clarity on how commercial leases will be dealt with.  Small businesses in shopping centres or rented buildings across the country are at the mercy of institutional landlords, who may be unwilling to accommodate any breaks in rent.  There has been no guidance from the government on this issue at all and many smaller business owners fear huge bills that they simply can’t pay.

“These initiatives may provide some relief for businesses but they fail to address the bigger issues that so many business owners are facing.  Unfortunately, unless the government sets out a roadmap to deal with these issues, many of the smaller businesses simply won’t make it out the other side.”