Covid-19: Businesses angry with government despite lockdown reprieve

Shoppers on Patrick Street. Cork Chamber has warned that the increased restrictions that are still likely will impact business. File picture. 

A dozen trade groups and more than 400 individual businesses have written to Taoiseach Micheál Martin expressing deep concern over the Government’s Covid-19 response, despite it resisting National Public Health Emergency Team (NPHET) recommendations for a virtual lockdown of the economy in a bid to stem the pandemic.

The open letter came from those in the so-called ‘experience’ sector – hotels, bars and events companies – which contributes €4.5bn in wages and taxes each year and employs more than 330,000 people.

It called for a much more targeted set of measures and supports for restriction-impacted businesses and said such companies are being constrained “disproportionately”.

Restaurant owners had urged the Government to refuse NPHET’s request, calling the Level-5 recommendation “surprising, unexplainable and economically unreasonable”.

Adrian Cummins, chief executive of the Restaurants Association of Ireland, said it would have meant only around 5% of eateries could remain open – compared to even just 20% now - and would have heightened the existing risk of 180,000 jobs being lost across the hospitality industry.

But, with Level-3 restrictions still planned for the country, the Irish Hotels Federation has warned the Government’s moves could make it impossible for many hotels to stay open without a “substantial and immediate” increase in financial supports.

Retailers said more restrictions would have “a devastating impact” on businesses and jobs, with one industry group saying even talk of lockdown being under review came as “a major shock”.

“The economic and social costs would be enormous, thousands of businesses and jobs would be at risk,” said Retail Ireland director Arnold Dillon.

“No evidence has been presented that retail settings are a significant cause of Covid transmission. In fact, the sector has radically transformed how it operates, with face masks, social distancing and other hygiene measures, to ensure a safe and highly controlled environment for customers and staff.

“We need to be able to manage the threat of Covid through targeted restrictions, while also sustaining economic activity and jobs. The retail sector has clearly demonstrated that this can be done,” Mr Dillon said.

He called for “a rigorous risk assessment”, incorporating economic and social considerations, before any new restrictions are introduced.

Retail Excellence said over 280,000 workers will "breathe a sigh of relief" as they remain in employment.

Ibec CEO Danny McCoy has called for the evidence prompting NPHET's recommendations to be published by the Government. Picture: PA 

Business group Ibec has slammed the way NPHET's recommendations were communicated as “irresponsible”, saying it has fuelled uncertainty and put pressure on the political system.

“The mandate of NPHET is to advise Government," said Ibec CEO Danny McCoy. 

"It is one step in the process for Government to assess a proportionate and whole of society response to the pandemic.  At this stage in the Covid crisis, it is gravely dysfunctional that NPHET communications continue to be leaked into the public domain, substantially undermining the necessary political oversights and assessments that are built into the Living with Covid framework,” he said.

Mr McCoy urged the Government to publish the evidence that underpinned NPHET's recommendations.

Goodbody chief economist Dermot O’Leary said the likely economic impact of moving into lockdown would have made “a wholesale reconfiguring of supports” necessary.

“With next week’s budget preparations in the final stretch, taking NPHET’s advice would significantly change the short-term priorities,” he said.

Cork Chamber chief executive Conor Healy said it was unfortunate that increased restrictions are still likely, as they will have a very significant impact in terms of business, jobs and the wider economy.

"All increasing measures do have an impact and the Government must continue to advance supports for businesses and as we approach the budget. This changing environment needs to be taken into account," he said.