Irish businesses cry out for a shot in the arm as the lockdown rumbles on

Retail groups want a full reopening of shops by the start of May and urgent action to reignite hope among shop owners and workers.

Retailers, builders, hoteliers, publicans, and restaurateurs are calling for much more clarity and support from the Government, with confirmation that the country is staying in lockdown — at least until early April — threatening meaningful economic recovery this year.

Outside of an extension to the pandemic unemployment payment (PUP) scheme and business supports, there was nothing outlined in the Government's revised Living With Covid-19 plan to soothe business fears. 

Hopes for any meaningful widespread easing of restrictions after April 5 are not currently very high.

Construction sector 'disappointed'

The Construction Industry Federation (CIF) said it was “deeply disappointed” with the extended lockdown of the building sector, saying there have consistently been negligible levels of Covid cases within it.

The CIF warned that the extended lockdown will now see 800 new homes per week taken out of supply and means thousands of SMEs within the industry are facing “huge uncertainty”.

It said more than 60,000 construction workers are now on the PUP and thousands of those jobs are “permanently threatened”.

Retailers 'close to despair' 

Retailers want an immediate restoration of click-and-collect services and a full reopening of shops by the start of May.

Retail Excellence chief executive Duncan Graham warned immediate “urgent action” is needed to “bring life and hope back to retail”.

Retailers are “close to despair” and facing massive financial challenges, he said, while employees are “suffering hugely”.

We really need to see signs now that there is at least a reason to be hopeful. 

Retail groups also want the introduction of a comprehensive arbitration system to deal with disputes arising over unpaid rents.

"Many retailers continue to face unreasonable demands from landlords for rent accrued during periods when they were closed,” said Retail Ireland director Arnold Dillon.

"These issues need to be resolved through arbitration, not in the courts." 

Hospitality sector reaction

The exclusion of any clear indication as to when the hospitality sector may reopen has also been slammed. 

The Restaurants Association of Ireland expressed “extreme disappointment” with the Government’s latest announcement.

Chief executive Adrian Cummins said the lack of any clear path towards reopening, and no information as to how reopening dates will be decided upon, was “unacceptable”.

He said the extension to existing business supports does not go far enough.

If we are all in this together why are we, the public, businesses and employees, not being informed of the plan for reopening sectors? 

Mr Cummins added: “What metrics are being used, be they vaccinated people, hospital admissions, the R number? 

What do we all, as a society, need to work towards to safely reopen again? 

"Until that day, what meaningful supports will be offered to businesses who simply cannot trade and are keeping banks and landlords at bay?” 

Publicans weren’t expecting specific reopening dates, but had hoped for an outline of what conditions would be necessary to facilitate some resumption of trading.

Licensed Vintners Association chief executive Donall O’Keeffe said there remains “no hope on the horizon” for the hospitality sector and that business supports need further strengthening.

'Supports should be extended'

The wage subsidy scheme should be extended to the end of this year and CRSS payments need doubling, while commercial rates should be waived for the entire year, he said.

The Vintners Federation of Ireland (VFI) said the lack of a detailed reopening plan for the pub sector is “a major flaw” in the Government’s plan and will prolong the anxiety and uncertainty for more than 7,000 publicans.

“It’s incredible the Taoiseach did not signal what would happen after April 5, especially after his recent vague comments that hospitality would remain shut until ‘mid-summer’,” said VFI chief Padraig Cribben, calling the update "a missed opportunity" to give clarity to the pub sector.

Record low for hoteliers 

With hotels facing into a summer of record low bookings, the Irish Hotels Federation (IHF) echoed the sentiment that the extension to business supports is insufficient.

The IHF said the Government is “in denial” over the true level of support needed for the hospitality sector.

“It is time for the Government to step up to the mark for those sectors of the economy that are being asked to stay closed,” said IHF president Elaina Fitzgerald Kane.

“Government supports, to date, have been very welcome and have made a difference for hotels and guesthouses. However, these supports are wholly inadequate in the face of an extended lockdown and the prospect that the all-important summer period will be eroded,” she said.

Prospects for growth

The economy was expected to grow by around 5% this year. That projection was based on lockdowns not running beyond the first quarter of the year and the economy gradually reopening by April and being fully open again by September. 

That estimate could now be under threat, according to Goodbody chief economist Dermot O’Leary.

SMEs consider staff cuts

Meanwhile, new research has found that nearly a third of SMEs — so often referred to by the Government as the backbone of the economy — are considering cutting staff numbers in a bid to remain viable.

According to the Association of Chartered Certified Accountants (ACCA), the ability to sustain appropriate levels of cashflow is the biggest concern for SMEs and nearly 30% are eyeing job cuts in an effort to maintain their financial viability.