New supports announced for businesses as latest Covid restrictions begin to bite

A man walks past empty seating outside a pub in Dublin. Picture: Damien Storan/PA

A financial package totalling around €100m per month has been announced to support the arts and hospitality sector shuttered by recent restrictions.

The package announced today was agreed by Cabinet this morning and changes made to the wage subsidy scheme and Covid restriction support scheme will cost approximately €50m each for the month of January.

"It's targeted at the hospitality sector, the arts and entertainment sectors who will be most affected by the most recent restrictions," Tánaiste, Leo Varadkar said.

To these businesses, my message is there will be better days ahead. Hopefully as soon as the spring if not the spring and summer. We'll stick with you and stand behind you. 

"Until then, because when we get through this phase of the pandemic, when the pandemic is over, we're going to need hospitality and tourism and arts and events, festivals and music like we never do before. We're going to need you to get through this period and survive and prosper again."

EWSS and CRSS

The package will see the employment wage subsidy scheme (EWSS) reopen for new applicants and paid at the full rate until January.

The Covid restrictions support scheme (CRSS) weekly payment will now be paid to businesses that feel they have to close due to restrictions, for example, a bar that does not find it financially viable to open, if it must close at 8pm.

These businesses will now receive the CRSS weekly payment which they would not have received in the past.

If a business such as a hospitality business or theatre or a bar or restaurant, or a venue stays open and is able to operate up until 8pm but has seen a 40% reduction of their 2019 turnover, these businesses will also qualify.

An extension of tax warehousing by another three months has been agreed and as has already been announced, commercial rates will be waived for the first quarter of next year.

"My message to business is a simple one," the Tánaiste added.

"Please keep your staff on the payroll if at all possible. The employment wage subsidy scheme is there for you for that reason to help you cover your overheads but also to keep your staff on the payroll.

'The Government is on your side'

Tánaiste, Leo Varadkar: 'We're going to need you to get through this period and survive and prosper again.' Picture: Sasko Lazarov/RollingNews.ie

"A lot of businesses are struggling to find staff, even in this pandemic. My department has received a record number of work permit applications from people outside the European Union who want to come and work here. 

"So I'd really encourage employers to use the employee wage subsidy scheme to keep their staff on the payroll. You're going to need them when you reopen in the spring and you might find it hard to get them back.

You are not in any way to blame for this pandemic, the virus is to blame. 

"These restrictions are necessary to protect public health. But government is on your side. We're here to support you. I'm here to make sure that your businesses survive."

Minister for Public Expenditure Michael McGrath said the government were left with the choice of "let them fold or to help them survive," when it came to businesses.

"It's always a better option to support a business, to give them the opportunity of surviving. It is of course the case that some businesses once supports are withdrawn won't survive and there will be scarring effects in different sectors," he said.

"We know for example, that about €3bn of tax debt has now been warehoused at this stage by about 100,000 businesses. So there are many challenges ahead.

"It is of course possible that there are some individual businesses that we are supporting now, who may not survive into the long term once those supports are withdrawn. But that's not an assessment that can be made right now."