Brendan Smith backs wage supports, urges SBAS fix for small traders
Brendan Smith spoke on 22 April 2021 about COVID-19 business supports, welcoming the minister's package while pressing for changes to the Small Business Assistance Scheme for sole traders who had claimed CRSS. He endorsed a colleague's points on older sole traders and urged government action to protect employment links and main-street businesses.
Supports and spending figures
He welcomed the minister's outline of supports as "very, very significant" and cited the scale of public spending. He referred to the estimated extension cost of the employment wage subsidy scheme of $1.3 billion (said as $1.32 billion), around $12 billion in direct income supports since the onset of the pandemic, and a total COVID-related allocation in excess of €28 billion across 2020 and 2021.
Employment links and corporate knowledge
He stressed that the employment wage subsidy supports employment and helps maintain the link between employer and employee. He warned that the country must value corporate knowledge and experience built up by employees in both public and private sectors so experienced personnel can return when businesses reopen.
Concerns about Small Business Assistance Scheme eligibility
He raised concerns that some one-person enterprises and small traders were deemed ineligible for the new Small Business Assistance Scheme because they previously claimed under CRSS. He proposed that such businesses be allowed to access SBAS with any amounts already received under other grant schemes deducted from the final approved payment, noting many applicants were unaware of SBAS when they claimed earlier supports.
Impact on retail and call for digital supports
He highlighted the severe challenge facing retail in smaller towns and villages, describing local streets with only delivery vans and urging targeted assistance. He welcomed local enterprise office help to move small firms online and appealed to government to prioritise extra support to help smaller-scale businesses develop an online presence and remain viable.
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Thank you very much. I endorse the comments of my colleague, Deputy John McGuinness, particularly in regard to people aged over 66, in many instances sole traders, self-employed, and also the smaller scale businesses. But I welcome the Minister's outline of the supports available, and they are very, very significant. I think the figures the Minister quoted earlier in regard to the economic cost of COVID-19 demonstrates very, very clearly the impact it has had on employment and on the enterprise and on commerce in general. And of course that pales into insignificance when we think of the cost in lost lives and people suffering as well. But I welcome those supports and I welcome the fact that the Minister said as well that there will be certainty given that we need to ensure that to help to maintain viable business and employment, to provide businesses with certainty to the maximum extent possible. I think I gather that the estimated cost of the extension of the employment wage subsidy scheme amounts to $1.3 billion. That is $1.32 billion, a very substantial amount of money, and also since the onset of the pandemic some $12 billion has been spent in direct income supports, and overall the amount allocated for COVID-19 related supports across 2020 and 2021 is in excess of €28 billion. That demonstrates very, very clearly to all of us the awful economic cost of COVID-19. The COVID-19 restrictions support scheme is a good and it is an essential support to businesses who have witnessed a major reduction in their turnover. Again, the employment wage subsidy supports employment, and it supports employers to maintain the link with the employer and employee. For too long in this country, we did not value enough the corporate knowledge, the expertise and the experience that had been built up by employees, whether it was in the public sector or the private sector, and I think it is very important that that link is maintained between employer and employee, that hopefully when these businesses can return to a trading position and hoping to get viable again, we need those experienced personnel back. We need the person back, we need the person back who knows the customer for their business, who knows the market and has that expertise and corporate knowledge in that particular business. I welcome the fact that last month the Small Business Assistance Scheme was introduced, and in quarter one that will allow a maximum payment of €4,000 to companies, self-employed sole traders or partnerships. Now, I had raised a number of queries in regard to this particular scheme, because I came across a number of people, business owners, who were deemed ineligible for this new scheme due to having claimed under CRSS. The amount received was much lower than they would receive under the SBAS scheme. I repeat again, and I know it is the Department of Enterprise, but across Government Minister, I would like you to look at this again with your colleague, that such businesses, which will struggle to remain open in the future, that they be allowed to avail of the SBASC, but any amounts claimed under other grant schemes be deducted from the final approved amount, if they were to be allowed to participate in the new scheme. In the cases that I have in mind, the applicants availing of a very small CRSS payment were not aware of the SBAS scheme when claiming under the other schemes. They are small traders, they are one person enterprises, but they are the type of business that populate the main street in our smaller towns and villages. And all of us know of the particular challenges that faces retail in our smaller towns and villages, when we see nothing, only delivery vans, delivering goods to households in every estate, in every town, in every county in our country today. So I think that demonstrates very clearly the huge challenge that retail faces to open again, to make their businesses viable. And again assistance has been given through the local enterprises offices to assist smaller businesses to go online and partake in the digital economy. And again, I would appeal for government to lay a particular emphasis and give particular assistance to the smaller scale businesses so that they can develop an online business. Thank you, Alaskan Cora. Thank you.
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