Marian Harkin urges grant aid for small businesses
Marian Harkin urged the government to reconsider direct grant aid for small businesses, citing German grants described as non-repayable support. She also questioned how flexible the government has been on EU state aid rules and asked its view on increasing EU own resources for the proposed recovery instrument Next Generation EU.
Grant aid and the German model
Harkin quoted the German finance minister that the German package provides grants not loans and argued the government should look again at granting direct grant aid to small businesses. She said many firms face mounting debts from utility and insurance bills and some are deciding whether to reopen.
Gaps in existing supports
She highlighted that available grant schemes tied to rates paid exclude many legitimate businesses that do not pay rates, and described the domestic fund as small compared with some European counterparts. Harkin requested a written response from the Taoiseach on the issue.
State aid rules and company impact
Harkin asked what flexibility this government has shown in applying state aid rules following discussions at the European Council and whether any Irish companies are suffering as a result. She noted she had previously raised the question with Minister Coveney and referenced IAG and Erlingas in comparison with support given to Lufthansa.
Next Generation EU and own resources
She set out the numbers discussed at European level - a proposed recovery instrument of 750 billion euro combined with the multiannual financial framework to total about 1.85 trillion euro - and said that such a package would require increased EU own resources. Harkin asked for the government’s view on increasing own resources, noting past blockages in the Council but stressing the emergency context.
Follow-up and expectations
Harkin sought clarity and a written reply from the Taoiseach, pressing for reconsideration of grant aid and further explanation of the government’s position on state aid flexibility and EU financing arrangements.
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Thank you, thank you Minister and I have been listening to the debate and I had hoped the Taoiseach would be here because the last time I addressed the Taoiseach on the floor of this house I spoke to him about the grant aid that the German government is providing for small businesses and I mentioned a figure of 50 billion he told me he hadn't heard that and would I send him the information which I've done and I'd like to quote the German finance minister and this is specifically what he said when he made this announcement he said I want to make a crucial point he said we are providing grants not loans nothing has to be paid back to us in this way we're taking action to reach the people who urgently need our support right now and in that context I was asking the Taoiseach if they would look again at granting grant aid for small businesses many of whom are now in the process of making decisions about whether or not they will reopen those who have faced and I've said it many times in this house a mounting wall of debt from utility bills to insurance bills etc over the last couple of months and people are now making decisions about whether or not they will reopen I know we have some grant aid available to businesses based on businesses based on rates paid but for those who don't pay rates for very legitimate reasons and there are many there is no assistance and that fund is a very small fund compared for example to what some of our European counterparts are paying so that was the question that I had for the Taoiseach and hopefully he can respond to me in writing I just have two questions in the European Council meeting they spoke about maximum flexibility and application of the budget and state aid rules and I just wanted to ask what flexibility have this government shown in relation to state aid rules as far as some of our companies are concerned and I did ask this question before of Minister Coveney I don't want any analysis to look at whatever flexibility we have shown around state aid how it compares with other EU countries and are any of our companies or businesses suffering because of this and I heard some of my colleagues earlier speaking about IAG and is that stated for Erlingas similar perhaps or in comparison with what the German government have done for Lufthansa and my second question minister is this new proposed recovery instrument and next generation EU 750 billion put it in with the MFF and we're looking at about 1.85 trillion and I have spoken about this that this will require increased own resources I just wanted to ask what's the view of this government on that issue of increasing own resources certainly over the last few years in the parliament it's something that we would have called for but there was always blockages within the council now I know it's an emergency situation but in general if you could give me some indication as to what our view is on that issue thank you
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