Carol Nolan urges support for SMEs as businesses reopen
Carol Nolan urged the government to back businesses reopening after the pandemic, calling for substantial stimulus for SMEs and changes to grant eligibility. She warned that EU recovery repayments will add to national debt and pressed the Tánaiste to engage insurers and the Central Bank to support firms.
Opening remarks
She began by wishing businesses that reopened the very best of luck, stressing how essential local shops and enterprises are to town and village life. Nolan said the pandemic revealed how bleak communities would be without these businesses and urged they be valued and supported.
Scale of pandemic supports
Nolan highlighted the scale of support already provided during the pandemic, noting that more than 54,000 employers registered with Revenue for the wage subsidy scheme and more than half a million people received payments. She said the total cost was about 936 million and used these figures to illustrate the scale of the economic challenge.
EU recovery funds and future liabilities
She welcomed access to about 2 billion in EU recovery funds and other loans but warned of long-term costs, citing an EU Commission estimate that Ireland's repayment contribution from 2028 to 2058 would be 18.7 billion. Nolan said this would make Ireland the second highest net contributor after Luxembourg and that the liability will affect long-term planning, increase debt and reduce capacity to borrow for job creation.
Sustaining Enterprise Fund and eligibility concerns
Nolan welcomed a predecessor's plan for a 180 million sustaining enterprise fund that would offer 25,000 to 50,000 short-term injections to eligible small companies. However, she criticised restrictive eligibility criteria that lock many businesses out because they do not meet employment thresholds and asked the Tánaiste to commit to reviewing participation rules.
Insurance and regulator engagement
She raised a serious problem with insurance companies leaving businesses "high and dry" after closures and asked the Tánaiste to engage with insurers and the Central Bank. Nolan called for regulators to put an onus on insurance companies to play their rightful part in supporting businesses.
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I'm all good co here look and I just want to start by wishing all of the businesses who opened their doors earlier this week the very best of luck. No doubt they'll face many, many challenges but I do hope that this new government steps up to the mark and realises how important our businesses are in terms of driving the local and national economies. I just want to point out also that during the pandemic and indeed we continue to see the effects of it every day in our lives, what it really brought at home how bleak our towns and villages would have been. without these businesses they're so essential and it's only at times like this that you see how important our businesses really are and they do need to be valued and indeed given every support possible and that would be my remarks in beginning here today. You are clearly aware Tanaiste that there is a significant need for substantial series of measures to provide stimulus to the SME sector and indeed almost every other sector in our society. At the height of this pandemic more than 54,000 employers had registered with revenue for the wage subsidy scheme with more than half a million people receiving the payment under this scheme. The total cost was about 936 million and this really points to the scale of this challenge we face. I note that the EU are willing to offer us access to recovery funds of about 2 billion in addition to other loans to stimulate business and enterprise and I welcome that. But the stark and really alarming news is that Ireland's contribution repayments to the EU recovery package from 2028 to 2058 amounts to an unbelievable 18.7 billion according to the EU commission. This will make Ireland the second highest net contributor in the EU after Luxembourg. Clearly this must have some impact on long-term planning. It also adds significantly to our debts which in turn decreases our capacity to borrow and create jobs in the real economy. I did welcome your predecessor's plan to create a 180 million sustaining enterprise fund for small businesses. This fund will provide 25,000 to 50,000 short-term funding injection to eligible small companies to strengthen their ability to return to growth. But again, the problem here is that many businesses can't take up these schemes and grants, however good they may be, because the criteria is too restrictive. I've spoken to many businesses and because they haven't the number employed to qualify for the supports, they can't get the supports. And that's wrong and I feel it needs to be looked at. We need to support as many businesses as possible and make sure that nobody is left out. And I just want to say that, we'll ask you, will you commit to reviewing the issue in terms of many businesses being locked out of schemes and grants with a specific view to increasing participation? And I also want to outline here today, there's a serious problem with insurance company. Many businesses close their doors in good faith and they're being left high and dry by insurance companies. And I just want to ask you, will you please engage with the insurance companies and with the central bank to put an onus on the insurance companies, to play their part, their rightful part, in supporting our businesses? Thank you very much.
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