Brendan Smith: Calls to Extend €4,000 Power-Up Grant to ICOP1
Brendan Smith raised concerns that the new €4,000 power-up grant excludes many businesses which received the first increased cost of business payment (ICOP1) but not ICOP2, and he urged the Department to ensure all ICOP1 recipients are eligible. He said administrative changes reduced ICOP classifications from 17 to two and left many small and medium enterprises unaware they were ineligible.
He told the chamber that businesses which received ICOP1 but not ICOP2 are not eligible to apply for the power-up grant announced in the recent budget and described the situation as devastating for many businesses.
He outlined that the first increased cost of business scheme had 17 categories and paid 50% of the rates. ICOP2 paid 50% of rates as well but reduced the 17 categories to two - accommodation and food service and wholesale and retail - and only businesses classified within those two categories in ICOP1 received ICOP2.
Brendan Smith highlighted that smaller and medium enterprises, particularly in smaller urban and rural areas, have faced increased costs and fear for their viability. He said many businesses did not receive notification they were ineligible for ICOP2, often did not follow up because payments or rates bills were relatively small, and that he had received many calls from concerned small businesses.
A ministerial reply noted the power-up grant builds on the increased cost of business scheme which "has this year paid out about £244 million to over 75 businesses right across the country." The power-up grant was said to have a budget of £170 million, qualifying businesses would receive a grant to £4,000, and "over £29,000 retail and hospitality businesses have already registered" since it was launched on the 24th of October. The minister and the Department said they were looking at the eligibility issue and that it needed to be examined.
Brendan Smith pressed for an immediate change to allow all ICOP1 recipients access to the power-up grant; officials in the chamber said they would "do our very best" to examine and address the matter urgently.
Eligibility issue raised
He told the chamber that businesses which received ICOP1 but not ICOP2 are not eligible to apply for the power-up grant announced in the recent budget and described the situation as devastating for many businesses.
Changes to ICOP classifications
He outlined that the first increased cost of business scheme had 17 categories and paid 50% of the rates. ICOP2 paid 50% of rates as well but reduced the 17 categories to two - accommodation and food service and wholesale and retail - and only businesses classified within those two categories in ICOP1 received ICOP2.
Impact on small and medium enterprises
Brendan Smith highlighted that smaller and medium enterprises, particularly in smaller urban and rural areas, have faced increased costs and fear for their viability. He said many businesses did not receive notification they were ineligible for ICOP2, often did not follow up because payments or rates bills were relatively small, and that he had received many calls from concerned small businesses.
Government response and published numbers
A ministerial reply noted the power-up grant builds on the increased cost of business scheme which "has this year paid out about £244 million to over 75 businesses right across the country." The power-up grant was said to have a budget of £170 million, qualifying businesses would receive a grant to £4,000, and "over £29,000 retail and hospitality businesses have already registered" since it was launched on the 24th of October. The minister and the Department said they were looking at the eligibility issue and that it needed to be examined.
Calls for urgent action
Brendan Smith pressed for an immediate change to allow all ICOP1 recipients access to the power-up grant; officials in the chamber said they would "do our very best" to examine and address the matter urgently.
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Transcript
I wish to thank you and all the staff of the Houses here for the courtesies and support over the years. Our smaller and medium enterprises, which are the backbone of our economy, particularly in the smaller urban and rural areas, have faced particular challenges over the last few years due to increased costs. Many of those businesses fear for their viability into the future. Series problems have now arisen for a large percentage of those businesses in accessing the new power-up grant of €4,000. The first increased cost of business scheme had 17 categories and paid 50% of the rates of a business. ICOP2 paid 50% of rates as well, but the 17 categories were reduced to two, namely accommodation and food service and wholesale and retail. Only the businesses that had classified themselves within those two categories in ICOP1 got ICOP2. The businesses within the other 15 classifications did not get any notification that they were ineligible for ICOP2, and many did not follow up, as in many instances only small payments were due, as their rates bills were relatively small. Now businesses that got ICOP1 but not ICOP2 are not eligible to apply for the much better power-up grant of €4,000 which was announced in the recent budget. This is devastating for many businesses and must be changed. The department must ensure that all businesses that got ICOP1 get the power-up grant. Those businesses were not informed about the changes and they need this financial support. I had very many calls alone this morning from small businesses who literally put themselves in the classification that they thought they were right. There were 17 classifications and you could easily fit into one of those categories. Then there was a decision made at an administrative level and it is totally unfair and must be changed immediately. Thank you. I thank the Deputy for raising this issue, the power-up grant which was announced as part of the budget, builds on the successful increased cost of business scheme that has this year paid out about £244 million to over 75 businesses right across the country. The power-up grant now has a budget of £170 million, qualifying businesses would receive a grant to £4,000, over £29,000 retail and hospitality businesses have already registered for the grant since it was launched on the 24th of October. In order to get payments to eligible businesses by the end of the year, the qualifying criteria for power-up are aligned with the ICOP scheme and as you said there are two types. However, you are correct in saying businesses that did not receive a second payment under ICOP then were not eligible to register for the power-up grant. My understanding is that the Minister is looking at it and clearly said that was being looked at within the Department, with a view to saying could we do something to sort that out. It is a fair point and it is something that needs to be examined. Thank you. Would you ensure that this is a practical matter for us? We'll do our very best. Thank you. Can you fix it, sir? Please. It's tomorrow. Okay, so it's urgent. Thank you. Thank you. Thank you.