Government makes €6m in supports available to businesses in lockdown counties

The Government announced the measures this afternoon in response to imposing restrictions there over a week ago.

0Tanaiste Leo Varadkar TD during a Cabinet meeting at Dublin Castle. Photo:Gareth Chaney/Collins

The Government has announced that over €6 million of funding is being made available for businesses and tourism for Kildare, Offaly and Laois.

Public Expenditure Minister Michael McGrath announced the subsidies on Friday saying they “represent a genuine effort by Government to address the negative consequences" in Kildare, Laois and Offaly, as a result of the restrictions imposed last Friday on public health grounds.

The government was advised by public health officials to take the drastic steps after a spike in Covid-19 cases linked to meat factories.

Businesses and representatives who spoke "almost hourly" this week with Tanáiste Leo Varadkar and Ministers Dara Calleary and Michael McGrath, have been calling for bespoke measures for the midlands counties to aid the local economies.

Eligible businesses will now be entitled to a 20% top-up on the Restart Grant, bringing the new minimum for affected counties to €4,800 and the new maximum to €30,000.

Those that applied and received a grant previously, can re-apply and receive a second grant. €1m has been awarded to the Local Enterprise Offices of the three counties, and applications from affected counties will be prioritised for all existing schemes, including the Sustaining Enterprise Fund.

€1m has also been given to Fáilte Ireland to initiate a tourism initiative for when the restrictions end, a promotional campaign that will focus on increasing the appeal of the three counties to visitors and drive bookings, amid fears from some business owners of a "stigma" being attached to the localities for holidaymakers.

Kildare Chamber alluded to the fact that more funding may be needed in the future.

Its CEO Allan Shine said the counties still need clarity on the Temporary Wage Subsidy Scheme as many in the hospitality and tourism sectors have been left without a wage through no fault of their own. Some of the businesses closed have reported thousands in lost income in the last week, after just two weeks of reopening in July.

Labour's Enterprise spokesman Aodhán Ó Ríordáin said that the news came as "too little too late for many struggling businesses", and that the government should extend the TWSS for the three counties and that supports should have been made right away.

“The package of supports to be announced today are insufficient," he said.

"A once-off additional payment of between €800 and €5,000 will not make a scintilla of difference for struggling businesses in Kildare, Laois and Offaly who have had to close for a second time due to no fault of their own. The Government should have made at least €10,000 available to businesses in the three counties with additional funding available if needed."

Taoiseach Micheál Martin has told some county representatives that he does not believe that the "local lockdown" will run beyond the 16 days which was advised last Thursday.