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The Tánaiste has said that the Government will not consider increasing restrictions beyond Level 3 unless it deems it necessary.
Business, Trade and Employment Minister Leo Varadkar said one of the most difficult decisions he made as Taoiseach in March was to impose the blockade on the country, causing thousands of people to lose their jobs.
All counties in the country are subject to Level 3 restrictions until midnight on October 27.
617 more cases of COVID-19 were reported in Ireland yesterday, as well as five additional deaths associated with the virus.
Speaking before the publication of the Budget 2021 in Hands on with Bobby KerrMr. Varadkar said that a reduction of the VAT rate for the hospitality sector was being considered.
He said: “It is heartbreaking for me to think that in the last week alone, we have had to close the hospitality business and 60,000 people returned to pandemic unemployment pay after being laid off for the second time this year.
“No government wants to make those kinds of decisions, we don’t take them lightly and we certainly won’t go to Level 4 or Level 5 unless we believe it is necessary.
Mr Varadkar said that a reduction in the VAT rate for the hospitality sector is something that is being considered before next week’s budget.
The industry has been one of the most affected by the closures during the pandemic and has called for a VAT reduction from 13% to 9%.
He also suggested a change in focus of funding supports for businesses that remain closed due to COVID restrictions.
Mr. Varadkar added that “there will come a time” when a judgment will have to be made about which businesses will be viable in the future.
He said, “I’m not willing to make that call yet.
“It may turn out that the pandemic changes things forever and pubs may never be the same again, aviation may never be the same again, and nightclubs may never be the same again.
“But I still hope and believe that with the development of a vaccine, with improvements in testing, improvements in treatment, we’ll get to a point, hopefully by the middle of next year, where life goes back to what it used to be. And give those companies a chance to survive. “
It comes as the Minister sent a letter to 250,000 companies this week reminding each of them what they must do to be prepared for the new business environment that would be established after Brexit on January 1.
The letter, which also contains information on government financial supports, is intended to advise companies on how to adapt to new customs, controls, product compliance, supply chain, and cash flow issues.
Varadkar said that while many companies are prepared for Brexit, he is concerned that some smaller companies that only trade intermittently with Britain are not.
He added: “I think there are a lot of businesses in the pipeline, but some might be distracted by COVID, or some might be assuming there will be some kind of trade deal that will make these problems go away, but it won’t.
“It doesn’t matter what kind of trade agreement there is, or if there isn’t one, there will be changes on January 1.”
Mr. Varadkar also responded to carrier complaints about traffic delays observed this week following the introduction of the Garda checkpoints.
He said: “We are in the middle of a global pandemic and in a second wave here in Ireland and we have to prioritize public health.”
“The level of traffic that we are seeing on our roads is indicative of the fact that many people are not following the restrictions and that is one of the reasons why the virus is increasing and that is also detrimental to businesses.
“I’m sorry for the inconvenience, but it is being done to protect lives and also to protect businesses and the economy.”
The Tánaiste added that people should not be crossing the border into Northern Ireland, aside from essential travel, as the increase in coronavirus cases there is “extremely concerning.
Main image: Archive image of Leo Varadkar. Credit: RollingNews.ie
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