Oireachtas needs to ‘join’ for government commercial support

The commercial supports announced today depend on the formation of a new government.

€ 6bn has been put forward to help companies reopen after the Covid-19 restrictions, including a three-month exemption on fees to local authorities.

The Taoiseach says it is hopeful that a government can be formed in June.

Finance Minister Paschal Donohoe says the parties must come together to ensure the stability of companies.

He says: “There is much that can be done regarding the configuration of these funds before legislation is required.

“For all this to be implemented, legislation will be needed […] This will require the Oireachtas to unite. “

Government announces assistance package of 6,000 million euros for companies affected by Covid-19

Commercial rates will not apply for three months to companies affected by the Covid-19 pandemic.

The deficit of 260 million euros for local authorities will be financed by the Government.

The Government had already presented a series of measures to support those affected by the pandemic, including emergency income support, such as the Temporary Wage Subsidy Plan and the Pandemic Unemployment Payment.

They have now introduced a series of additional measures to help the economy as Covid-19 restrictions begin to lift.

The cabinet has agreed on a € 6 billion aid package for farmers, small, medium and large companies.

It includes allowing businesses to take out a low-interest loan to reopen their businesses.

The measurements are:
• A € 10,000 restart grant for micro and small businesses based on a 2019 fee refund / waiver;
• A three-month commercial fee exemption for affected companies;
• A € 2 billion Pandemic Stabilization and Recovery Fund within the Irish Strategic Investment Fund (ISIF), which will make capital available to medium and large companies on commercial terms;
• A € 2 billion COVID-19 credit guarantee plan to support loans to SMEs for terms ranging from three months to six years, which will be below market interest rates;
• The “deposit” of tax obligations for a period of 12 months after the resumption of trading, during which time no revenue enforcement measures will be taken by Revenue and no interest charges will be incurred on the debt stored;
• A commitment to local authorities to compensate for the tariff deficit, so that local authorities can continue to provide full services to the public

Finance Minister Paschal Donohoe said the measures are designed to “minimize the damage” from the pandemic.

Minister Donohoe said: “Covid-19 has created a world that none of us could have imagined a few weeks ago. Our collective public health has been directed; our businesses and our economy have been burdened with an unimaginable burden; and our society is dealing with this new reality.

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“But by working together, we are minimizing the damage. The hard work of the Irish people has ensured that we face this disease, our people are united to care for each other in the most extreme circumstances and our businesses try to adapt to this new and most challenging environment.

“In addition to the measures previously implemented by the Government, this set of measures described today is designed to build trust, further assist companies in terms of managing their companies, and allow them to start looking to the future and start to charting a path forward for weeks and months ahead.

“We will continue to look for the best ways to support our people and society at large, and rebuild our economy so that we can get people back to work safely. We will do this taking into account official public health advice and doing what the best interests of all our people are at stake. “