Paschal Donohoe: Covid-19 restrictions pose 'real risk' to businesses

Finance Minister Paschal Donohoe gives an update on the Covid restrictions support scheme and encourages businesses to avail of the support. Picture: Julien Behal 

The yo-yo effect of Covid restrictions poses a "real risk" to businesses, said the finance minister.

Paschal Donohoe said the Government has rolled out a number of supports, including the Covid restrictions support scheme (CRSS) and the Vat reduction for the hospitality sector, in a bid to protect and support businesses that have now been forced to shut a number of times since the outbreak of the pandemic.

Mr Donohoe said there are "clear signs" that restrictions are working; however, he made it clear that level 5 will remain in place until the start of December.

"We're deeply conscious of the economic, social, and personal costs as a result of those decisions, but they are driven by trying to ensure that we are in a very different place with this disease at the end of the year," said Mr Donohoe.

He said there are no plans to extend the stay and spend scheme beyond April, but he said the measures which aimed to encourage people to holiday in Ireland would be reviewed in "February or March".

Mr Donohoe said the reopening and closing of businesses as restrictions change has impacted on their ability to plan for the future.

"I think the kind of economic risk that we face has moved beyond how much of our business is open and how much of our business is closed to the broader issue of businesses that are open having a question mark regarding how long they will be open for, and I acknowledge that.

"Moving to level 5, of course, had an effect on the way in which businesses, particularly businesses in the hospitality sector, need to plan for being open and plan for retaining staff. So yes, that risk is there," said Mr Donohoe.

Launching the CRSS with Tourism Minister Catherine Martin, Mr Donohoe urged companies to register for the support on Revenue's ROS site.

He said over 3,850 businesses have already registered since the scheme opened earlier this week.

Under the CRSS, a business that is closed because of Covid-19 restrictions can claim up to €5,000 for each week that they are impacted.

Ms Martin said it is vital that the tourism and arts sectors continue operating and are ready to reopen their doors to help in our recovery when the time comes.

"I want to ensure that, while tourism is struggling now, it continues to be a driver of recovery in the future, while arts venues very much need this financial lifeline," said Ms Martin.