Cork's economic recovery will rely on extended supports, Chamber warns

Conor Healy: Firms are unable to plan ahead due to uncertainty over support schemes, and regional airports must be aided too

The speed of Cork's economic recovery from Covid-19 is reliant on a continuation of government supports for businesses, Cork Chamber has said.

The extent to which Cork recovers from the economic impact of the pandemic will fully depend on the Government extending business supports well into the future, Cork Chamber has warned.

The chamber has urged the Government to provide further clarity on the future of its various Covid business supports. 

It ultimately wants significant extensions to the wage subsidy scheme and commercial rates waiver.

Call to support airports

The chamber has also called for “substantial support” for regional airports “well into 2022” in light of Aer Lingus’ decision to close its cabin crew base at Shannon Airport and temporarily close its base at Cork Airport.

It said while Cork is beginning to emerge from the pandemic, the speed of the region’s recovery will be fully determined by the extent of Government support on offer.

The chamber said the current supports have been “pivotal to economic continuity” in the region, but said continued action to safeguard the most vulnerable sectors of the economy remains “essential”.

Businesses 'can't plan ahead'

“Despite the recent reopening of retail, personal services, and cultural businesses, and plans for elements of leisure and hospitality, business is not yet in a position to plan ahead with any certainty,” warned Cork Chamber chief executive Conor Healy. 

Covid business supports have been a lifeline to many but their extension far beyond June will be essential as it is clear the pandemic’s impact will extend beyond this date.

“It is essential that Government extends the wage subsidy scheme and waiver on commercial rates for vulnerable sectors in tourism, hospitality,  and events to the end of 2021. 

"This will give the worst affected businesses the ability to plan for the months ahead, to re-employ staff with reasonable confidence and to contribute to economic and social stability,” Mr Healy said.

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Mr Healy said Aer Lingus’ decision to cut operations at Shannon Airport and temporarily close at Cork is “a clear indicator” of the pressure that is continuing to mount on the aviation industry. 

He said the move is a negative development for the region’s direct connectivity to the US and elsewhere.

“If we are to protect our reputation as a destination for business, Government must provide substantial support for regional airports well into 2022,” he said. "These are issues that affect the whole of the region and need a robust response from the Government.

This is very distressing news for the employees, and it is a negative development for the region's direct connectivity to the US, Europe and beyond. 

Redundancy rebate scheme

Cork Chamber, along with Chambers Ireland as a whole, has also urged the Government to reintroduce a redundancy rebate scheme for SMEs and sole traders and enact the summary rescue process for SMEs — which is expected to be passed into law by the summer. 

The Chamber also wants an extension of the debt warehousing scheme.

This, it said, would be of value to affected businesses, many of whom have been ineligible for other supports.

The Government recently said it intends for the long-awaited overhaul of insolvency legislation — making it cheaper, faster, and easier for viable small companies to restructure if their survival is at risk following the removal of Covid supports — to be in place by the summer: 

It is critical that Government communicate a coordinated, coherent, and clear programme for the continuation of supports and full reopening of businesses with urgency.  

"Office-based organisations must be included in this planning with a roadmap offering guidance on operating procedures through to the end of 2021 and beyond, to ensure that businesses work in line with the national plans on living with Covid. 

"Any delay or lack of clarity from Government will undermine the viability of businesses, the speed of our recovery and the sustainability of our economy,” he said.