Matt Shanahan on Debenhams, Budget Fairness and Regional Funding
Matt Shanahan addressed the Dáil on the budget and ongoing Debenhams dispute, welcoming much of the package while urging fairness and de-escalation. He called for exceptional relief for workers, questioned regional capital allocation and pressed for relief on business filing deadlines.
Debenhams dispute and call for de-escalation
Matt Shanahan expressed sympathy for Debenhams workers, described concerns that tactical insolvency may have occurred, and urged senior government ministers to seek de-escalation. He criticised asset moves that left workers without redress, urged trade unions to review protections and warned against criminalising workers' actions in the High Court. He said exceptional treatment for the workers would be the "right, the moral thing and the fair thing to do."
Budget welcome and wartime framing
He broadly welcomed the scale and breadth of the budget, agreeing with its description as a "wartime" budget that requires exceptional measures. He singled out specific budget commitments he supports while pressing for fairness and equity across regions and services.
Capital funding and South East concerns
Shanahan highlighted the 10.1 billion euro capital fund as a potential game changer but asked whether the South East would receive an 8.89% pro rata share. He cited a previous 2018–2022 capital tracker showing stark regional disparity - the South East receiving 97 million, Cork Kerry 902 million and Dublin 5 billion euro per capita, about 15 times greater than the South East - and warned such imbalance must not continue if regional rebalancing is to be achieved.
Local rates, disability funding and business supports
He welcomed a 900 million euro commitment for local authority rates and a 100 million euro allocation for disability services to help families and respite provision. On business supports he criticised the handling of restart grant tranches and goalpost changes that disadvantaged firms, and pressed for deferrals or exemptions on Companies Registration Office and Revenue filing strictures. He warned late filings could force small firms into audited accounts for two years and noted Revenue gave only five days for some TWSS-related returns.
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Minister, thanks. I was in the House earlier on this morning and I suppose broadly welcoming a lot of the outlines of the budget, but highlighting to the Taoiseach the need to make sure that we see fairness and equity in it. Just before I go on to other parts of my contribution, I too would like to reference the Debenhams workers. I do think that, and I heard the Taoiseach's comments earlier this morning, I do think we need to have some de-escalation of the situation. I'm on the record here before as saying that it appears that tactical insolvency was arrived at. I think government and this government probably needs to atone for the mistakes of the last government, that we did not close the door after clearies that Cattle Duffy wasn't implemented probably fully and that certainly we didn't look at legislation that would stop companies from moving assets out of the reach of workers who had a pay agreement and unfortunately it was not provisioned in the accounts. And I think that's something that the trade unions should have a look at in the future. But had that been done, maybe there would be security for the workers there now. But that being said, I know in my own city of Waterford, we give people, give huge support to Debenhams and to the workers and we still do. And I feel very, very sorry for their situation. And I feel very sorry for the escalation that is putting them up in the High Court and is basically criminalising their very right and just call for some redress to their situation. And I would ask that senior government ministers would look and to try and see some de-escalation and some exceptional activity for this one. And I know we do want to be creating exceptions for everything, but in this case, I think we should do it. I think it's the right, the moral thing and the fair thing to do. Just beyond that, in terms of the provisions of the budget and in general terms, as I say, I welcome, I think most deputies in the House would have to welcome the general breadth and scale of what the budget yesterday was announced. And I have heard it and I would agree it's a wartime budget. And I think on that basis, we have to do exceptional things. And I think in terms of some of the exceptional provisions of the budget, I welcome the 900 million euro commitment to local authority rates. And I think that will be a big help to local authorities in the coming year. It will certainly help to those who have had the rates waiver and it will help straighten out the accounts of some of our local authorities as they try to plan for the coming year in very dramatically and very different economic circumstances. The 10.1 billion capital fund, I think absolutely a certain game changer, but I made the point to the Taoiseach here this morning that will the South East see the 8.89% pro rata capital share out of it because we haven't had it before. And I'd again put on the record of the House, the previous capital tracker from 2018 to 2022 of large capital infrastructure projects in the state, which saw the South East get 97 million, saw Cork Kerry get 902 million and saw Dublin get 5 billion euro per capita, 15 times greater than the South East. And that type of disparity in funding and capital infrastructure and investment cannot continue into the future, particularly if a programme for government is going to speak about regional rebalancing and fairness. I welcome also the 100 million for the disability services. Again, I think that, you know, people have been in particularly dire circumstances this year. Parents with children who have special needs, those who are looking for respite and cannot get it, and I welcome that funding that government have agreed to. Just in terms of some of the contingency funding for business, I would point out that this year in the restart grant, government announced one restart grant funding date and subsequently announced a second tranche of money. But when they did, they moved the goalposts on the first application date, which meant that many companies who were going to apply for the first one hadn't got their application in in time and were only able to claim the second tranche. And I think that is a little bit, I don't want to say devious, but it's bordering on that area. And I think that's something that we mustn't do in the future. We must signal that if we are going to make grant monies available to business, it must be clear and straightforward how they are to claim them. In terms of revenue filings, I would like to just, Minister, but on the record of the House, and I hope that you will bring this to the Department of Finance, I think there should be a deferral on some of the strictures of filings this year. The CRO is not exercising discretion in terms of the implementation of filing accounts. So, for instance, companies that have to do a CRO filing before the 13th of September will have to file their accounts before the 31st of October. There's absolute pandemonium out there in terms of experts in this area who are doing the filing of accounts, accountants and what have you. But the failure to file on the date means you lose your exemption to audited accounts. In other words, for the following two years, the CRO requires your company to provide audited accounts. That's extra costs on small business at a time when they are absolutely prostrate at what has happened in terms of the economy. So, I'm asking that some exemption will be given for those companies this year that they would not lose the exemption that they have from audited accounts the following year in terms of late filing. The same is also true in terms of tax office deadlines in October, where companies who claimed the temporary wage subsidy scheme have got to basically show to revenue how they arrived at their turnover being down. And in actual fact, revenue gave them an opportunity five days, not even five working days, five days in which to make those returns. So, this relates to the TW SS. I think forbearance here again must be practised by the Department. Also, in terms of the tax warehousing scheme, for those with a 31st of October filing date, if you apply for the tax warehousing, will the service charge be waived for those filing for income tax? So, that hasn't been made clear as well. Also, the liabilities to corporation tax does not appear to be eligible for the debt warehousing scheme, and I think that is something that needs to be looked at. So, just if you could, Minister, in terms of that. Beyond that, in terms of the budget, I think, as I say, I generally welcome particularly the announcements of funding in health and education, and particularly in healthcare as we are so challenged. But one of the other things which I brought up in the House here recently was getting access, for industry to get access to some of the thought leaders and effort. There is a lot more that we can be doing in this country in terms of implementing different protocols for fast tracing and testing. And that could be the game changer in keeping our economy open and not having to move to a circuit breaker lockdown. And unfortunately, we have wasted months in trying to get there when peer countries are implementing these initiatives, and I believe that we should be implementing them too. Just in terms of hospitality, the 9% fat is absolutely welcome, and I think it will do something. But I have asked government also to consider a voucher scheme. For a lot of businesses who are not trading presently, they cannot benefit from that. But as soon as business gets to open up, I think government should look at some kind of a voucher scheme to incentivise people to go out and spend and to support their local industry. So, I think, on balance, as I say, I welcome the provisions of the budget. I hope to see equity and fairness demonstrated, particularly within the capital allocations and the service budgets. And on that basis, I suppose, as part of one member of the regional group, any I support and welcome what has been done? Thank you. Thank you. Thank you. Thank you. I pleasure for rightful chat with your review. Thank you, everyone. Thank you. Thank you, Andrew. Thank you. Thank you. Please. Thank you. Thank you, ladies. Thank you.
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