Department of the Taoiseach

06/01/2021 | Press release | Distributed by Public on 06/01/2021 04:55

Pillar 3: Re-building Sustainable Enterprises

Our overall ambition is to exceed pre-crisis employment levels to 2.5 million people in work by 2024.

The Government is committed to creating the right environment for a jobs-led recovery by setting out a renewed package of supports and investments; helping business become more resilient, innovative and productive; improving Ireland's competitiveness; and through a focus on expanding sectors and leveraging green and digital opportunities.

Both domestic SMEs and multinational companies (MNCs) will play a significant role in reaching our overall employment target.

Disruptive macro trends including accelerations in automation and adoption of remote working; deepening geopolitical divides on the integrated, open nature of the global economy, including international tax developments; and other societal changes are redefining business models. The pandemic has seen significant adaptability, innovation, digitalisation and diversification by businesses. This Plan builds on this through strategic policies.

Our approach includes:

• Supporting the domestic SME Sector through a Ministerial-led implementation Group and Single SME Portal and boosting the resilience of Irish SMEs to current and future shocks, by improving productivity, internationalisation, exporting activity, digitalisation, and greening enterprise driven by the SME and Entrepreneurship Growth Plan .

• Continually enhancing our value proposition for Foreign Direct Investment, driven by the IDA Ireland's new strategy Driving Recovery and Sustainable Growth with ambitious targets around winning investments and job creation, Global Ireland 2025 and a New Trade and Investment Strategy;

• Digital adoption, driven by the forthcoming national AI Strategy and substantial digital initiatives as part of the National Recovery and Resilience Plan to a total value of €295 million. These include an €85 million programme to drive digital transformation of enterprise, as well as eHealth initiatives, digital infrastructure and funding for schools, and developing a Shared Government Data Centre;

• Supporting the resilience and sustainability of enterprise on its decarbonisation pathway, with a €10 million Climate Enterprise Action Fund and online climate toolkit for businesses, as well as €55 million in EU funding as part of our NRRP to support enterprise in their decarbonising journey;

• Driving increased cost competitiveness and advancing our innovative knowledge economy in an increasingly competitive global environment, focused on education and talent, research and innovation and collaboration.

• New National Strategy for Research and Innovation with national R&I targets and a new €71m National Grand Challenges Programme; and National Clustering Policy and Enabling Framework and a further €40m investment in Technology Universities Transformation Fund to aid development of Technological Universities.

Recovery Supports

The Economic Recovery Plan sets out a new package of enterprise supports and extensions for the most impacted sectors, reaffirming the Government's commitment to taper supports off gradually.

EWSS Extension of the Employment Wage Subsidy Scheme and the Pandemic Unemployment Payment as outlined under Pillar 2 - Helping People Back into Work.
CRSS COVID-19 Restrictions Support Scheme (CRSS): The COVID-19 Restrictions Support Scheme will be extended beyond 30 June until the end of the year. As firms are able to re-open and exit the scheme, there will be an enhanced restart payment of three weeks at double rate of payment to support businesses in meeting the costs of re-opening as they exit the scheme. The maximum re-start payment will be increased to €10,000 per week, allowing businesses to receive up to a maximum of €30,000.
SBASC Complementary supports include the Small Business Assistance Scheme for COVID-19 (SBASC), with a new round of applications for quarter 2 and broadened eligibility to assist a wider range of enterprise with grant aid to assist with fixed costs.
Business Resumption Support Scheme A new more streamlined business support scheme, the Business Resumption Support Scheme, will be introduced for businesses with significantly reduced turnover as a result of public health restrictions in September 2021.
Commercial Rates Waiver The Commercial Rates Waiver will be extended beyond 30 June, to end-September, is its current form.
Debt Warehousing Scheme The Tax Debt Warehousing Scheme will be extended to the end of 2021 for all eligible taxpayers with an interest free period during 2022. COVID related liabilities will then fall to be paid from 1 January 2023. Overpayments of Employment Wage Subsidy Scheme will now also be included in the scheme.
SCARP A dedicated new standalone examinership process to reduce cost and timeframe for small companies is being established - the Small Companies Administrative Rescue Process (SCARP).
Temporary Redundancy Claim Suspension The temporary suspension of the right of an employee to trigger a redundancy claim has been extended to 30 September. When it is lifted businesses experiencing difficulties can be supported through the provision of a COVID-19 Deferred Payment arrangement.

Aviation Sector

A roadmap for the recovery path for the aviation sector is rooted in the re-opening of international travel, supports for workers in particular EWSS, and sectoral specific supports.

• Non-essential travel can return from 19 July and for travel within the European Union area, Ireland will be operating the EU Digital Covid Certificate (DCC).

• Previously Government agreed an €80 million funding package specifically for Irish aviation for 2021. It is recognised that additional support may be required to support the aviation sectors recovery as it opens up.

Tourism Sector

Continuing support for the tourism sector will be important for the coming adjustment period as public health restrictions are lifted and international travel is restored. As part of Government's support for the sector, the lower tourism and hospitality VAT rate of 9% will be extended to 1 September 2022, and Fáilte Ireland will continue its support initiatives including through its Business Continuity Scheme or equivalent schemes.

• Arts: Government will consider a range of recommendations in relation to Arts and Culture, including a proposal for a basic income guarantee pilot scheme for artists.

• Live Entertainment: A number of pilot live events for arts, culture, sport and live entertainment (indoor and outdoor) are being developed for delivery in June and July. These events will inform the safe re-opening of these activities and events when the public health situation allows. These opportunities will build on complementary supports for this sector, including:

o The Live Performance Support Scheme (LPSS);

o The live entertainment sector will also be supported through a tailored scheme the Music and Entertainment Business Assistance Scheme (MEBAS); and

o A new events sector support scheme providing a once-off scheme to address a gap in supports for SME's in the events sector for those that don't qualify for CRSS or don't make an application for support under MEBAS, will be launched shortly.

Other Existing Supports

Other existing supports will remain in place. These include:

o €2 billion COVID-19 Credit Guarantee Scheme;

o Future Growth Loan Scheme;

o Brexit Impact Loan Scheme;

o ISIF Pandemic Stabilisation and Recovery Fund;

o Sustaining Enterprise Fund;

o Trading Online Vouchers and Online Retail Scheme;

o COVID-19 Life Sciences Products Scheme;

o Capital investment grant scheme for the food processing industry;

o Climate Enterprise Action Fund;

o Disruptive Technologies Innovation Fund;

o Financial planning and other grant supports available through the Local Enterprise Offices, Enterprise Ireland, IDA Ireland, and InterTradeIreland and lending through MicroFinance Ireland.