The Government's National Economic Recovery Plan provides certainty for business as the economy gradually begins to transition from Covid restrictions over the coming months, business group Ibec has said.
Ibec noted the importance of ensuring funding from the EU Recovery and Resilience Fund is deployed effectively to address the pre-existing economic and social challenges exacerbated by the pandemic and ensure the long-term sustainable recovery and development of the economy.
It said this includes securing further innovation, deployment and adoption of the digitalisation opportunities presented by the emerging post-Covid landscape.
"Despite the positive progress made in terms of the easing of restrictions in recent weeks, many businesses will struggle to return to pre-Covid levels of activity for some time," Ibec's Danny McCoy said.
Mr McCoy said that financial support schemes have represented a "crucial lifeline" over the course of the Covid-19 pandemic and will continue to do so over the coming months.
"It is positive that Government has committed to a tapering off of the schemes rather than an abrupt cliff-edge termination.
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"Focus must now turn to ensuring the activation of the labour market and safely returning workers to the workplace as swiftly as possible, including those within the Experience Economy," he said.
Construction industry to lead transition to a green economy
The Construction Industry Federation said the implementation of the plan must see more focus on supporting construction companies to upskill, develop and invest so as to meet its demands and the Government's Climate Action Plan.
CIF Director General Tom Parlon said the reality is that construction companies will lead Ireland's recovery and transition to a green economy.
"The impact of helping Ireland's 55,000 construction enterprises on Ireland’s transition will be twofold when all of these construction companies are sustainably building sustainable buildings," Mr Parlon said.
"To achieve this, the construction industry is rapidly undergoing digitalisation. However, construction SMEs need to be supported more fully to enable this digital transition," he added.
Mr Parlon said that Covid-19 has resulted in uncertainty in the pipeline of projects, making proper long-term planning and investment for construction companies difficult.
"With the certainty of a revised National Development Plan, expected soon, construction companies will be able to build capacity and meet the needs of the Irish economy and wider society, as it always does," he said.
Extension of business supports a 'relief' for struggling firms
Chambers Ireland Chief Executive Ian Talbot said confirmation that key Covid supports for businesses and employees impacted by the pandemic will be extended will come as a relief to those who continue to experience significant uncertainty.
Ian Talbot said that Chambers Ireland has been a continuous advocate for the ongoing support of businesses and the announcement today is broadly positive in providing assurances in the short term.
He said this will allow employers to plan for a return to trading and help restore the economic health of their businesses.
"The recent eligibility extension of the Small Business Assistance Scheme (SBASC) is welcome, but clarity on application criteria for this scheme, and other restart grants must be made public as soon as possible," he added.
Mr Talbot said the €915m the country will receive through the European Union's Recovery and Resilience Facility will also be an important avenue for rebuilding the national and local economies.
"Sustainability must be at the centre of this process. This will help to develop social and economic resilience and put Ireland in a better place to face future challenges," he stated.
While today's plan understandably addressed the recovery on a national level, Chambers Ireland said it continues to urge Government to support towns and cities across Ireland with targeted policy and schemes.
SFA warns that SMEs will continue to face challenges for a protracted period of time
The Small Firms Association said it welcomed the Government's commitment to a tapering off of Covid-19 financial support schemes rather than a cliff edge termination.
"Such supports will continue to play a crucial role for thousands of businesses across the country in the short-term, while the gradual easing of such schemes will enable businesses to more effectively address the staffing challenges over the coming months as the economy and wider society emerge from Covid restrictions," SFA's Sven Spollen-Behrens said.
The SFA also welcomed the extension of the commercial rates waiver in its current form, increased funding for upskilling and further education, particularly in the online space.
But it noted that small businesses will continue to face challenges for a protracted period.
"Through the National Economic Recovery Plan, the Government has a unique chance to address these challenges, that left unaddressed will have a devastating effect on the small business economy and lead to a further deterioration in the commercial rental landscape, tighter options for small business to access finance from financial institutions and working capital," Mr Spollen-Behrens added.
"As we move out of the immediate crisis and into recovery, we would like to see a commitment from Government for a detailed Return to Workplace plan. The ad hoc nature of this phase of the reopening must be addressed urgently to allow business to plan their return and to get the recovery of our business parks and town centres under way," he also said.
Family businesses now have the chance to take part in a jobs-led recovery
The Family Business Network said today's National Economic Recovery Plan gives family businesses the certainty they need to rebuild from the pandemic and to play their part in driving a jobs-led recovery.
John McGrane, Executive Director of the Family Business Network, said the continuation of the 9% VAT rate for businesses in the hospitality sector will provide the breathing space for family-run hotels and restaurants who would otherwise struggle to reopen.
"Through the extension of the Employee Wage Subsidy Scheme until next summer, these businesses can save as many jobs within local communities as they can," he added.
But McGrane said that athough the new Business Resumption Support Scheme could prove to be a lifeline for many family businesses, the devil will be in the detail.
"Government needs to ensure that the scheme is used to support companies facing reduced turnover over the winter months," he urged.
He also said the extension of the rates waiver will ensure that family businesses can keep their doors open over the summer.
"However, a further extension will need to be considered by Government given it will take years not months for businesses to recover fully from the impact of the pandemic," he added.
Employment and business supports welcomed by hoteliers
The Irish Hotels Federation (IHF) President, Elaina Fitzgerald Kane, welcomed in particular the retention of business and employment supports including the Employment Wage Subsidy Scheme (EWSS), the 9% Tourism VAT rate and the COVID Restrictions Support Scheme (CRSS).
"We also welcome the various business and employment supports, including the extension of Commercial Rates Waiver and the Tax Debt Warehousing Scheme," said Ms Fitzgerald Kane.
"We look forward to engaging with the Government on the detail of the new additional Business Resumption Support Scheme, as well as the enhanced restart grants that are proposed," she said.
Economic Recovery Plan struck a strong balance with new and extended measures
The Association of Chartered Certified Accountants has welcomed the Government plan announced today.
Caitriona Allis, Head of ACCA Ireland said the extension of the wage subsidy scheme, the new SME export supports and the 50,000 new training places for digital and green jobs will be crucial.
"The digital, technology and renewable sectors along with a vibrant small business ecosystem represent the future foundations of a thriving Irish economy and the Governments focus in prioritising these areas is the right approach as we look to the future," she said.
In order to fully support a jobs-led recovery, Ms Allis said she would ask the Government to consider opening these training places to the finance and accounting sector.
"This sector provides a critical advisory service to businesses throughout Ireland, and the key advice they provide supports growth and long-term prosperity across all sectors," she said.
"Phasing the withdrawal of supports is also a positive development and will come as a relief to many businesses," she added.
Recent research conducted by ACCA has found that 33% of SMEs will require additional financial support in the months ahead.
