Marian Harkin urges urgent tourism task force and rent relief
Marian Harkin spoke on 6 May 2020 about the urgent need to support the tourism sector and rural economies during the COVID-19 crisis, calling for a task force and clearer measures. She pressed the minister to engage industry stakeholders, extend rates relief, share rent burdens and provide grant aid while protecting businesses from punitive contract penalties.
Calls for an urgent tourism task force
She urged the minister and her department to convene the main players - from the hotels federation to the aviation sector and tour operators - and use that meeting as a template for a formal task force. Harkin said tourism businesses need clarity now so they can plan for reopening.
Impact on rural jobs and local economies
Harkin emphasised that tourism and food production are the lifeblood of many regional economies and noted that her own constituency accounts for over 30,000 jobs across Sligo, Leitrim, Roscommon and Donegal. She warned that without targeted support there will be "no show" for many towns.
Rates relief and rent burden sharing
She criticised proposals for only three months of rates relief as insufficient, arguing it needs to be a minimum of six months, ideally 12, with a guarantee of pro rata rates on reopening. Harkin called for burden sharing between tourism businesses, government and landlords on commercial rents to keep firms on "life support" until they can trade again.
Practical reopening questions and grant aid
Harkin relayed hoteliers' practical questions about weddings, guest numbers, floor-space rules, two-metre spacing, entertainment and check-in procedures, urging the minister to provide more operational certainty. She also said reopening businesses will need grant aid to adapt premises for social distancing and to address mounting debts.
Debt relief and protection from punitive contracts
She proposed that a portion of COVID-related debt be ring-fenced at European level to help kick-start tourism investment. Harkin also asked the minister to use government influence to stop telephone and energy companies imposing extortionate penalty clauses - cited as over 400 euro per company - on businesses terminating contracts.
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Look as many deputies have said tourism and food production are the lifeblood of many rural and regional economies and both that's both in terms of jobs and of course generating income. I support they call for the task force that many deputies have called for here today to deal with the myriad of issues that will have to be managed as we begin to reopen our tourism industry. And I think as a prelude to that minister your department needs to have a meeting with the main players with everybody from the hotels federation to the aviation sector to the tour operators and everybody in between and use that as a template for the task force that you're going to set up because it's really urgent that tourism businesses can receive some clarity about what's going to happen. Now as I said tourism is crucial in rural areas my own constituency there's over 30,000 jobs in the northwest in Sligo, Leitrim, Roscommon and Donegal and it's important to listen to what that industry is saying. And one of the things they're saying is that while the announcements last weekend were welcome they don't go far enough. Now I heard you say that there's a lot of moving parts and there are but take the issue for example of rates three months yet we know no tourism business can open before the end of June. It's not even part of your own roadmap. So these businesses looking at three months scrapping of rates it's it's just no good to them. It needs to be a minimum of six ideally 12 and a guarantee that when they are back in business they will be paying some kind of pro rata rates depending on the trade that they're doing. There's also a big issue around commercial rents and there has to be burden sharing between tourism businesses, the government and landlords and that applies to all businesses across the board. This kind of triumvirate need I think to set in place some kind of structure where businesses can remain on life support until the opportunity presents itself that they can reopen. Other deputies have asked for a 0% fat rate and I add my voice to that and I'm pleased to hear that you're considering it also and I do hope it will be part of the programme for government. Now in response to Deputy Shanahan you said money has to be repaid and you also said that tourism for many places is the only show in town. Now that's true the money has to be repaid but I honestly believe that a portion of the Covid debt has to be ring fenced at European level whether it's Corona banks or whatever and put to one side because it is the only way that the European economy can kick start itself and if we don't pump prime tourism projects then there will be no show in many different towns. Now I mentioned earlier that tourism needs certainty, yes it's uncertain times but hoteliers are saying to me can we book weddings for August, for September, what do we do about numbers, does it depend on the floor space we have, do we need two metres between each of the tables, can there be entertainment afterwards, how do we manage check-in. Those are all the practical details that while we are in uncertain times I think we can give more certainty to these businesses about so I would ask you to consider that Minister as well. Also when these businesses reopen they will need grant aid because they already have a mounting wall of debt and they just can't afford money to look at their businesses and see what needs to be done around social distancing. Finally, I know of businesses who regretfully have decided to close their doors and certain companies in this case telephone companies and energy companies are insisting on extortionate penalty clauses over 400 euro per company to terminate contracts. I won't name the companies today but I just want to ask you Minister is there any way that your department or the government can use your influence to stop these companies basically terrorising businesses who are no longer able to trade. Thank you. Thank you.
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