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The compensation for the rent was suspended during the second quarantine, but it is argued that these costs can be reimbursed once the subsidies are received. According to the Ministry of Economy and Innovation, last year 3,627 companies were compensated around 35 million. rental costs in euros.
I found many risks
At the Seimas Commission session held this Wednesday, Vice Minister of Economy and Innovation Vincas Jurgutis assured that it had been decided to abandon this measure for various reasons.
First, the principle of equality was violated because, if the landlord did not grant a bonus, no state aid could be claimed. There have also been several cases of abuse. After reviewing the companies that received this support, some of them did not comply with the conditions and the amount assigned to them is around 35 thousand. euros that companies must reimburse.
“These are cases in which the premises are not rented, but the land, the place of sale in the market and things like that,” he said.
Photo by Vidmantas Balkūnas / 15min / Vincas Jurgutis
According to V. Jurgutis, there were also cases in which, although companies carry out similar activities, some were able to receive support, others were not.
“There were really a lot of subjectivity evaluations and that number of applicants was not that great,” he said.
In addition, according to him, part of the funds went to large supermarkets.
“We need to understand who these funds are for, in which pocket they are falling back, and we understand what it looks like,” the deputy minister explained.
STT deputy director Rūta Kaziliūnaitė told the committee that approximately 0.4 million. In 29 cases, the related companies received support through shareholders and family members.
“A high concentration of stores in large supermarkets, which accounted for about half of all funds used. Generally speaking, it was settled, even though there was a relatively small proportion of real estate there, ”he said.
Photo by Vidmantas Balkūnas / 15min / Rūta Kaziliūnaitė
Kęstutis Motiejūnas, CEO of Invega, explained that this was the most complex and expensive procedure to administer. The institution had to pay “large payments” to the Registry Center for the verified data.
The company requires the return of the instrument.
Danas Arlauskas, president of the Lithuanian Employers’ Confederation, told the Seimas Economic Committee on Wednesday that companies have repeatedly asked the Ministry of Economy and Innovation to return to the issue of rent subsidies. According to him, the main problem with this subsidy is that it was “bureaucratized”.
“This measure was invented to help tenants. And when it is now said that all the applications have been approved, I want to remind you that 2.5 thousand. the requests were rejected. But more importantly, when he started checking in, he started mowing the lawn. He did not deliver on time, no such document, then letters to return the support and still with interest. “Businesses want justice,” he said.
Photo by Sigismund Gedvila / 15min / Dan Arlauskas
Mr. Arlauskas questioned whether Invega had acted fairly in relation to all the plaintiffs and whether “common sense criteria” had not been exceeded.
“I agree that there are other measures that are simpler, granting a subsidy and then the employer thinks, either for rent, for energy, or for another person (to assign). “This measure has been thought out, but bureaucratized, and that is why all the disasters have arisen and, for some, the tears,” he said.
Zita Sorokienė, president of the Lithuanian Association of Small Entrepreneurs and Traders, also assured that this issue is extremely sensitive for the self-employed. At the same time, he noted that current subsidies, which are often emphasized by the current government, are not an alternative to rent compensation.
“There is absolutely no help left in today’s measures, there is no rental compensation for the self-employed. We have no way of talking to the Ministry of Economy and Innovation about where and what subsidy it is in. If that is where the compensation is for the 2019 level of personal income tax, then there is simply no information on how to assess it. It is necessary to return to partial rent compensation, which would include all business entities in accordance with the Lithuanian Law on the development of small and medium-sized enterprises. And today, let’s stop discriminating between small businesses and other business groups ”, he confirmed in the committee.
Irmanto Gelūno / 15min nuotr./Zita Sorokienė
Seimas members second to business
The peasant representative Laima Mogenienė opposed the attitude of the Ministry of Economy and Innovation. According to her, rent, now that many business activities are prohibited, is the biggest expense.
“What I have heard from the Vice Minister, STT and Invega, no argument is rational and correct. To say that the most important thing is to facilitate administration to officials … On the contrary. When thinking of a small business, officials who receive good salaries should shake the conscience and say that it is not only about the survival of the businesses, but also about the families. Humanly, woman, I want to ask for sensitivity ”, he explained.
Mindaugas Skritulskas, a member of the Seimas-Lithuanian Christian Democrats Homeland Union faction, said he was surprised by the arguments made by the Ministry that the beneficiary of this measure would be large shopping centers.
“The big centers hardly believe in the tears of the small entrepreneurs and they certainly won’t forgive the rent in full. Finally, the obligation to pay the rent will fall on the small entrepreneurs. Do not forget that the mass of tenants is not only found in supermarkets, probably most will be in the old towns, where the rental rates are quite high. “That some benefits are seen for the large supermarkets, at a disadvantage for these entrepreneurs, seems strange,” he is convinced.
Mr. Skritulsk also emphasized that 25 cases in which it was established that the premises were rented to related companies should not penalize the entire business. Faced with the allegation that the administration of this measure was costly, the politician assured that the issue should be addressed through agreements with other government agencies. Also, he said, bankrupt companies will cost the state more than administering the support.
“Are we thinking about these costs? “I would urge you to rethink, change certain things, point out certain mistakes that STT has made and review this measure,” he said.
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