BUSINESS bodies have offered a mixed response to a new £213 million Covid-19 financial aid package agreed by the Executive on Monday.
The north’s largest business group, the Federation of Small Businesses (FSB) last night questioned whether the measures, including a new £95m high street voucher scheme to be rolled out in the new year, will actually get cash support to businesses in time.
Hospitality Ulster has also warned that a new package for ‘wet pubs’ will not be enough to halt job losses in the sector.
Significantly for businesses excluded from any Covid-19 support to date, yesterday’s package announcement included a new £20m scheme for company directors, while a £4.1m package for B&Bs has also been agreed.
Department for the Economy (DfE) officials are also understood to be finalizing the details of a £10m scheme for the newly self-employed.
A further £150m is to be set aside for a potential six-month expansion of the year-long rates holiday for retail, hospitality, tourism, leisure, childcare, and airports.
Manufacturing firms have already been guaranteed some form of additional rates relief, with £20m package forming part of yesterday’s announcement.
Elsewhere, £10.6m will go to a new scheme for ‘wet pubs’, with a further £8m for schemes aimed at tourism, hospitality and e-commerce development.
Hospitality Ulster last night said the additional support would still not cover the basic costs being incurred by the sector, which is facing eight weeks of closure in total.
Its chief executive Colin Neill said: “If the Executive cannot, or will not, provide adequate financial support for the businesses that they close, then they must open up hospitality in a sustainable manner.”
The Department of Finance (DoF) has also confirmed that its rate-based grant scheme for businesses forced to close under the health regulations will be expanded from £35m to £90m to cover non-essential retailers and other businesses forced to close from two weeks from Friday.
Both Conor Murphy and Diane Dodds’ departments were yesterday urged to speed up the rate of payments from their respective schemes.
The Localised Restrictions and Support Scheme (LRSS), which is operated by DoF, has so far paid out £19m to 5,046 businesses.
The scheme initially opened on October 14 for businesses in the north-west, but was expanded to the rest of the north on October 19 after the introduction of the current lockdown on October 16.
Around 11,500 businesses have applied to date, but hundreds of applications have been deemed ineligible.
DfE was initially allocated £40m for the Coronavirus Restrictions Business Support Scheme (CRBSS).
Part A of the scheme opened on October 28 for businesses forced to close, but unable to apply to the LRSS.
Some £3.6m had been paid out to 1,200 businesses as of the weekend, with around two-thirds of the 2,800 applications processed.
Part B of the grant scheme, which targets businesses in the supply chain, opened on Thursday night.
Diane Dodds said yesterday that 111 applications have been received to date.
“My officials are continuing to work to bring forward the details of an extension to applications to the CRBSS and these will be announced in the coming days,” said the minister.
Roger Pollen of the FSB said last night questioned the strategy of devoting £95m to a brand new scheme rather than working within the existing funding structures.
“Given the enforced closures of so many businesses that rely on the crucial pre-Christmas period, the Executive has missed a major opportunity to give immediate and targeted financial assistance by enhancing the levels of support available from the existing established schemes,” he said.
“This new money is welcome but, in terms of turning policy into action, we continue to hear of many eligible businesses that have yet to receive support arising from the previous restrictions, so all possible efforts must be made to get funding to the bank accounts of businesses who desperately need financial assistance to stay afloat.”
Speaking in the Assembly chamber yesterday, Conor Murphy said he understood the frustrations of businesses with the speed at which payments are being made.
He said schemes that would usually be designed and implemented over many months, are being turned around in a matter of days.
“Many government departments have repurposed themselves to provide grant support,” he said.
“For example, Land & Property Services within my own department is rates collection agency. It has transformed itself into a grant making agency and taken on new powers to do so.
“Designating a department, devising a scheme, checking applications, and issuing payments takes time. And we have a duty to minimise fraud and error.
“These grants are taking longer to issue than I would hope but officials are working as fast as they can do process payments.”
Belfast Chamber chief executive Simon Hamilton welcomed the new package.
“This is a substantial amount of support and whilst many will still feel that it does not go far enough, Belfast Chamber appreciates what Ministers have agreed and will work with them to ensure additional help gets to where it is needed,” he said.
