Month: May 2020

Details regarding the Covid 19 Business Restart Grant have been announced. We have included all the information we are in receipt of from Cork City Council and this is outlined below. Further information can be received from the Cork Local Authority Business Support Unit at 021 4924000 or email restartgrant@corkcity.ie. 

We urge all our members to study the attached and if they consider their business is eligible then make the necessary application ASAP  Apply online for the COVID 19 Business Restart Grant. I would suggest that having studied the attached and you are still unsure as to your businesses eligibility I would still err on the side of caution and apply now. For I suspect this grant will be over subscribed and you do not want your delay in applying as being the reason your application was unsuccessful.

A €250 million Restart Fund has been created nationally by the Minister for Business, Enterprise and Innovation.  The purpose is to to help micro and small enterprises with the costs of reopening during Covid-19.  Companies can apply for a grant to Cork City Council of an amount equivalent to no more than their 2019 rates bill and there will be a cap of €10,000. The grant can be used to pay ongoing fixed costs, for replenishing stock and for measures needed to ensure employee and customer safety.

To receive the grant from Cork City Council, a business must:

• Have an existing rate account with Cork City Council
• Have an annual turnover of less than €5 million and employ between 1 to 50 people
• Have closed, or incurred a projected 25% or more loss in turnover to the end June 2020
• Commit to remain open or to reopen if it was closed
• Declare the intention to retaining employees that are on the Temporary Wage Subsidy Scheme and to reemploy staff on the COVID-19 Pandemic Unemployment Payment where applicable

Apply online for the COVID 19 Business Restart Grant

Frequently Asked Questions

A lot has been said already about the proposed Retail Outlet Centre and CBA President Eoin O'Sullivan and CEO Lawrence Owens have commented on several media on the subject. We believe that the City Centre and the existing shopping centers should be further developed and thriving before we should want another large retail centre that will take away from an already struggling retail sector in the city.

This was the case before COVID-19 and even more so now. Underneath you will find the full submission from the CBA to Cork County Council which further explains our reasoning behind opposing this development.

Executive Summary

On 6th March, 2020, the Minister for Housing and Urban Planning notified Cork County Council of his intention to issue a Direction pursuant to Section 31 of the Planning and Development Act 2000 (as amended). The draft Ministerial Direction related to Variation No. 2 of the Cork County Development Plan 2014 (Retail Outlet Centres).

The reasons given for the draft Direction were as follows:

1. Variation No. 2 has not been made in a manner consistent with the recommendations of the Office of the Planning Regulator under section 31AM(8).
2. The Cork County Development Plan 2014 as varied by Variation No. 2 purports to identify a preferred location for a retail outlet centre to serve the Cork Metropolitan Area in advance of the preparation of a joint retail strategy as required under the Guidelines on Retail Planning published by the Minister in April 2012 under Section 28 of the Act and is inconsistent with the Guidelines on Spatial Planning and National Roads published by the Minister in January 2012 under Section 28 of the Act, and therefore fails to set out an overall strategy for the proper planning and sustainable development of the area.

The CBA is of the view that the recent decision by Cork County Council to proceed with this change to the Cork County Development Plan 2014 is not in accordance with the proper planning and sustainable development of Cork and should not, in any case, be contemplated prior to the preparation by both local authorities in Cork of an updated retail strategy for the Cork region as required under retail planning guidelines.

The CBA echoes the concerns articulated by the Planning Regulator that the council’s decision was premature and resulted in a Development Plan that fails to set out an overall strategy for the proper planning and sustainable development of Cork which represents a breach of the legislation.

Introduction 

The CBA welcomes the opportunity to make a submission to the draft Directive and as a key stakeholder representing over 200 businesses in the Cork City functional area [including Cork City and the retail centres of Ballincollig, Ballyvolane, Mahon, Wilton and Douglas] considers active engagement between Local Authorities and businesses as an imperative component of successful governance. Maintaining the health and viability of these key retail centres whilst ensuring the city centre is protected and safeguarded as the prime retail area and economic heart of the region is a key aim of the CBA as a high quality retail environment is a key ingredient to a successful city centre.

In keeping with the core mission and objectives of the CBA, the CBA strongly advocates any new initiatives which will create a better business environment for traders, employers, customers and tourists. With this in mind, the CBA places a high level of importance on supporting developments that serve to strengthen and enhance the city and wider city region’s retail position but equally places a high degree of importance on opposing developments which it deems will have a negative impact on the ability of the existing retail sector to remain competitive.

The CBA welcomes an evidence-based approach to new developments and welcomes the fact that a study was commissioned to examine the evidence for an Outlet Centre in the Cork Metropolitan Area.

The Study on the Requirement for Retail Outlet Centre(s) in the Cork Metropolitan Area was prepared by MacCabe Durney Barnes and Transport Insights who were appointed initially by Cork County and City Councils to prepare a Retail Study on the requirement for a Large Retail Warehouse Development in Metropolitan Cork.  The brief for the study was agreed following two meetings with Cork County Council and Cork City Council in late 2018.   Sometime after that, there was a suggestion that the study consider the need for a Retail Outlet Centre(s) specifically within the Cork Metropolitan Strategic Planning Area and Cork City. Following this transition from Warehousing to Retail Outlet, it is understood by the CBA that the study was solely commissioned by Cork County Council. This is extremely regrettable from the viewpoint of achieving the proper planning and sustainable development of the Cork Metropolitan Area as the premise for retail strategies in Cork City and County is that they are joint strategies, intended to be adopted and implemented by both local authorities, and that new developments should be measured against a set of jointly agreed principles and quantitative benchmarks.  As such, in the opinion of the CBA, the study from its inception was flawed.

Moreover, the entire approach to the proposed development by Cork County Council is extremely questionable: 

Firstly, there is no provision in the existing Joint Retail Strategy for a Retail Outlet Centre to be developed, so this proposal is completely without substantive policy support.  

Secondly, following the recent boundary extension of Cork city, Cork County lost a significant proportion of its rates base to the City and the revised study commissioned [without the involvement of the City Council] appears to be a concerted attempt to reclaim the revenues lost as a result of the boundary extension. 

Thirdly, following a clear developer-led proposal made to the council at pre planning stage for a development of a Retail Outlet Centre at Carrigtwohill, the brief of the study was changed to ‘Outlet Centre’ demonstrating the County Council’s reactive rather than proactive attitude to such a major strategic development that will have far reaching consequences for the City Centre as well as the nearby county towns in particular Midleton.  

There are a number of caveats as well as flaws in the report:

Site Selection Coincided with a Developer-Led Proposal

• the report was intended to be a ‘high level strategic assessment of whether or not there is sufficient headroom to support the provision of a retail warehouse initially and retail outlet centre subsequently in the Metropolitan Cork Area and if so identify at a strategic level the sub catchment within Metropolitan Cork that is most suitable to accommodate such a facility’.

What is questionable in this instance is that a site near Carrigtwohill was brought forward by a developer at around the same time as the MDB ‘brief’ was changed from a Retail Warehouse to a Retail Outlet Centre. It is suspiciously coincidental that the study just happened to recommend the site in question in Carrigtwohill as the most suitable location for a Retail Outlet Centre, whilst blatantly omitting the city centre from the study area.

Loose interpretation of Policy

• It is considered that a very loose interpretation of policy was applied in the policy review section of the MDB report. according to the report:

“The policy review has reaffirmed that the city centre/town centre first is the priority for new retail development which is in accordance with the GRP 2012 tests of the sequential approach. However, as has been highlighted, the 2018 Variation 1 of the CCoDP 2014 and in a select number of the 2017 MDLAPs introduce the policy potential for ROC/Outlet Centres being part of innovative retail formats in centres around the County. Therefore, whether the need for a ROC(s) is confirmed or otherwise in the study, the introduction of one or more could be in compliance with retail planning policy objectives.” 

This is an interpretation of current policy which is not substantiated by any evidence. There is no weighting given to the primacy of the city centre or recognition that it is the ‘first priority for new retail development’ in the consideration of locations in the city – this is a clearly not in accordance with current from policy. The relative ‘health’ of the city centre is also not considered.

The Exclusion of the City Centre

• Perhaps the biggest flaw of the report is the fact that the City Centre was excluded from the site selection process when the study brief was for it to include the entire Cork Metropolitan Area [CMA],  of which the city centre is the heart.  The report suggests that the sequential test should be undertaken to ensure the city centre is recognised as the prime retail destination but fails to adequately consider same. 

There is in excess of 150 hectares of land at the docklands which was not considered, a ‘do nothing approach’ was not considered [which is a key element of any meaningful assessment of need]. Given that there is a reported 18% vacancy level in the city centre [taken from the MDB Report] – it is remarkable that the scope for the city centre to accommodate the floorspace proposed was not considered. The recent announcement that a major anchor store on Saint Patrick’s Street [Debenhams] has closed [which is estimated between at 30%-25% the size of the proposed ROC] and the fact that a number of units in the Savoy Shopping Centre and Merchants Quay Shopping Centre are vacant, as well as the entirety of the North Main Street Shopping Centre, the CBA considers that there is ample space within the city centre to accommodate the quantum of comparison retail earmarked for the site in Carrigtwohill, the sequential test mandates that it should not diverted elsewhere. 

Had the city centre been included in the study area it is almost certain that an ROC could not have been justified on the basis of the sequential test, given the availability and superior suitability of city centre locations. It is clear a sequential approach to retail provision was not considered at all.   Page 61 of the MDB report states that Cork City was excluded due to its “central location, assumed limited suitable site availability and limited reserve capacity on the City’s road network”. This is an extremely weak justification for excluding a city centre where reported and obvious largescale opportunity sites exist including large vacant shopping centres.  As vacant space in the city exists, so this development could be delivered with significantly less capital investment, in a manner which supports and not competes with the existing retail sector in Cork, and in an area that benefits from being the hub of a high quality public transport network.

Modal Split/Car Dependency

• According to Table 6.3 of the Macabe Durney Barnes Report the proposed Retail Outlet Centre will be heavily car dependent with 90% of the visitors travelling to the Centre travelling by car. This is completely unsustainable and serves to undermine the €300million spent on reopening the Cork City to Midleton rail line and the recently announced CMATS [Cork Metropolitan Area Transportation Strategy] which indicates a coherent strategy for travelling to the city through the implementation of a number of park and rides and a proposed west to east light rail corridor. 

In consideration of national and international best practice, there is no policy basis or justification for a proposal which is reliant upon 90% of the visitors to the proposed development travelling by private car.  Notwithstanding the completely unsustainable nature of the proposed development, when considering traffic impact, the traffic congestion on routes leading up to the Kilcoolishal roundabout  - at times which coincide with the beginning and finishing of shifts in the factories at the IDA, Carrigtwohill Business Park and Fota Business Park - is currently bad. The network is in need of improvement and will only be significantly worsened if 90% of the proposed visitors to the Retail Outlet Centre are using the currently strained infrastructure. 

Cannot be justified on the basis of Tourism

• In a study of Kildare Village Outlet, it was found that only 5% of people visiting Kildare Village Outlet Centre stayed in hotels yet this proposal is being justified on the basis that it will substantially increase tourism and benefit many sectors such as the hotel sector.  Given the figures from Kildare it is extremely questionable that the proposed development can be justified on that basis.  There is only 2 hotels within a kilometre radius of the site and 5 hotels within a 5km radius so if 5% of the total number of visitors is spread across those 5 hotels it will only result in a marginal increase in tourism revenue. There will likely be a food offering on site also [according to the recommendations of the report] which limits the potential overspill benefit to local restaurants.

Trade Draw

• The application and overview of the trade draw with reference to Kildare Village Outlet Centre contained in the MDB report noted that from Kildare Town itself the trade draw was 5%, while it was 15% from Newbridge and 30% from Kildare County as a whole. 30% is a substantial figure. Based on this assumption, it suggests that the entire extended KTOV there would be a trade diversion of c9% from Newbridge. A recent health check for Newbridge suggests that the town was performing relatively well, and that vacancy rate was just under 10% of units, which were situated in the main part away from Main Street. This is compared with a current vacancy rate in Cork City centre of 18% and an assertion in the MDB report that the retail impact will only be 0.5% on the City Centre and only 0.3% on Midleton – we find this very hard to believe and the basis for calculation is questioned.  Furthermore in light of the Covid-19 crisis there is absolutely no scope to further draw any retail trade away from any of the existing retailers particularly in Cork City Centre and Midleton.

Retail Impact taken from the MDB Report

The need for further study

• The study indicates that there is scope and comparison retail potential capacity to accommodate a quantum of additional comparison retail floorspace within the CMA and region at 2023. The report notes that there are issues around the rapidly changing retail environment and the impact, in particular, of online retailing on floor space demand. The report notes that in order to fully assess the recent trends [and an timely insertion would be recent economic circumstances] on future retail floorspace requirements the MDB study suggests a comprehensive householder survey of expenditure patterns in the CMA would be required.   The study illustrates through the Annual Services Inquiry than online shopping continued to hit comparison expenditure available for the high street. The capacity assessment concludes that there is a requirement for between 90,000 and 100,000 sqm of net retail comparison floor area up to 2023 within the wider catchment. It notes that the subject proposed development would account for between 13-15% of this demand. There is however only capacity for one such outlet in the CMA – given that the city centre should be the first location for new retail developments and the fact that there is space in the city to accommodate this the CBA view the proposals as premature.

Incorrect Assumptions 

• The assumption made about the 2 hour catchment is questionable – Kildare Village is a 2 hour drive time away from the subject site so it is extremely questionable that an ROC could be justified on the basis of a drive time which includes a significant overlap of the catchment to another Retail Outlet Centre.  The catchment appears too generous and as such skewed the need for the ROC.

The % diversion of trade from each centre is completely questionable Midleton which is 5 minutes away and the closest town is not going to be affected the same as Ballincollig [which is on the opposite side of the city centre] as the study asserts. 

The City is already experiencing increased pressures from outside influences and in particular nearby competing centres which have improved their retail offer and attraction dramatically over the past number of years. Cork City retains a distinctive character, yet despite an attractive and vibrant city centre, the City has not benefited to the degree it should from the process of rejuvenation and redevelopment as seen in some other major urban centres. The City has not fully realised its potential to develop into a major retail centre for the region with Mahon Point in particular affecting retail trade. Whilst the City contains a good range of shops and services, and in particular independent retailers, the choice, diversity and overall mix of retail could be greatly improved, in particular the City lacks many major retail anchors and national and international fashion multiples that would normally be found in a City of this scale for example Zara, Massimo Dutti, Cos, Reiss and Bershka. The retail profile of the City is not commensurate with its status of a Gateway and significant City Centre. It is evident that the City has the potential to develop much further, if given the necessary range of actions, policy framework and economic conditions this needs to be recognised by both the City and County Councils.

Conclusion

Cork City is the primary tier in the retail hierarchy and the most significant urban centre in the County and region. However, the retail role of the City is vulnerable and it is envisaged that its role and function as the major retail destination in the region will continue to erode unless there is significant investment and redevelopment in the prime city centre retail core in the short term. 

In consideration of this, the CBA supports the draft Directive of the Minister pursuant to Section 31 of the Planning and Development Act 2000 (as amended) relating to Variation No. 2 of the Cork County Development Plan 2014 (Retail Outlet Centres). The CBA is of the view that the recent decision by Cork County Council to proceed with a change to the Cork County Development Plan 2014 is not in accordance with the proper planning and sustainable development and should not be made prior to the preparation by both local authorities in Cork of an updated retail strategy for the Cork region, as required under retail planning guidelines.

The CBA echoes the concerns articulated by the Planning Regulator that the council’s decision was premature and resulted in a Development Plan that fails to set out an overall strategy for the proper planning and sustainable development of Cork which represents a breach of the legislation. In the interest of the viability, prosperity and well-being of the entire region the primacy of the City Centre should be paramount in any decision-making process and to make all future policy decisions pertaining to retail developments with the best interests of the city and consequently the entire region in mind.

If you missed last weeks Webinar you can watch it back on YouTube.

It is worth while and will help you formulate and adapt your marketing plan and give you tips on how to stay connected with your audience even when you might not be able to see and work with them directly right now.

The Government's publication of the Return to work safety protocol on Saturday May 9th sets out what firms must do to re-open after being closed during the Covid-19 crisis. This development is very much welcomed by the Cork Business Association as it will give business clear guidelines on how they must operate once they re-open. Not all businesses will be opening up in Phase One which will give much needed time for these businesses to put the necessary measures in place.

In essence the Return to Work Safely Protocol is designed to support employers and workers to put measures in place that will prevent the spread of COVID-19 in the workplace when the economy begins to slowly open up, following the temporary closure of most businesses during the worst phase of the current pandemic.

The Protocol should be used by all workplaces to adapt their workplace procedures and practices to comply fully with the COVID-19 related public health protection measures identified as necessary by the HSE.

It sets out in very clear terms for employers and workers the steps that they must take before a workplace reopens, and while it continues to operate. A high-level consultative stakeholder forum, under the aegis of the Labour Employer Economic Forum will be established.

This forum will include membership from the various bodies with responsibility for health and safety at work and for public health more generally. The forum will allow for ongoing engagement at national level on implementation issues in light of evolving public health advice and other factors.

The Return to Work Safely Protocol, is the result of a collaborative effort by the Health and Safety Authority (HSA), the Health Services Executive (HSE) and the Department of Health and the Department of Business, Enterprise and Innovation.

Return to Work Safely Protocol

COVID-19 Specific National Protocol for Employers and Workers

Download 

The Cork Business Association welcomes the Government's announcement on measures to ease Covid -19 restrictions commencing on May 18th in 5 separate phases. These are the full details of all five stages for your information or you can use the direct links to gov.ie provided below.

18 May (phase 1)

8 June (phase 2)

29 June (phase 3)

20 July (phase 4)

10 August (phase 5)

Overview of the Reopening Phases

Easing the COVID-19 restrictions on 18 May (Phase 1)

Introduction

These measures are set to come into effect on 18 May. They are a part of the roadmap for reopening society and business and will only come into effect if the medical advice from the National Public Health Emergency Team says that it is right to do so.

Public health measures

Wearing of face masks

We will be issuing further guidance on when and where people should wear face masks in the next few days, well in advance of 18 May.

Stay at home

You should still stay at home as much as you possibly can.

Meeting small groups outside

Up to 4 people who don't live together can meet outdoors while keeping at least 2 metres apart.

Funerals

The current restrictions will remain in place. Attendance at funerals is kept to a maximum of 10 people - and only members of the household, close family or close friends if the deceased has no household or family members.

Health and social care

There will be increased delivery of non-COVID-19 care and services alongside COVID-19 care to meet demand through:

implementing measures to ensure safe delivery of COVID-19 and non-COVID-19 care and services side by side

continuing to deliver care and services in new ways (for example: through telephone, online, virtual clinics) and new models of care to meet demand and to alleviate concerns of patients, service users and healthcare workers

the use of masks, personal protective equipment, testing and other measures that may emerge over time

continuing to support the mental health and wellbeing initiatives directed to meeting the diverse mental health and resilience needs of the public during these times

Education and childcare

Childcare for healthcare workers

Childcare workers will provide care for the children of essential healthcare workers in the healthcare worker's home. Full details will be announced before 18 May.

Opening of schools and colleges

School and college buildings will be opened for access by teachers for organisation and distribution of remote learning.

Work

People who work outdoors

A phased return of outdoor workers (for example: construction workers, gardeners, including people working on allotments) will be allowed. Social distancing requirements continue to apply.

Remote working

Remote working is to continue for all workers or businesses that can currently do so.

Shops and other commercial businesses

Outdoor shops

Shops that are primarily outdoor (for example: garden centres, hardware stores, farmers' markets) can re-open so long as social distancing measures can be put in place.

Shops that can re-open

Shops that were previously open in Tier 2 (for example: homeware, opticians, motor, bicycle and repair, office products, electrical, IT, phone sales and repair) can open. A full list will be provided in advance of 18 May.

Sport and tourism

Outdoor spaces

Outdoor spaces and tourism sites (for example: car parks, beaches, mountain walks) will be opened where people can move around freely and where social distancing can be maintained.

Public sports grounds

Public sport amenities (for example: pitches, tennis courts, golf courses) can be opened where social distancing can be maintained.

Group exercise

People can exercise - either on their own or in a group of no more than 4 people - where social distancing can be maintained and where there is no contact with other people.

Easing the COVID-19 restrictions on 8 June (Phase 2)

Introduction

These measures are part of the second phase of lifting the public health restrictions that were put in place to protect us all from COVID-19. They come into effect on top of the measures in phase 1.

These measures are a part of the roadmap to easing restrictions. They are just an indication of what might happen if everything goes well with restricting the spread of COVID-19 in Ireland. These measures will only come into place when the National Public Health Emergency Team says that the conditions are right for more relaxation of the restrictions in place to protect us all.

Public health measures

Stay at home

The advice will be to still avoid unnecessary journeys wherever possible.

You will be able to travel up to 20 kilometres away from your home as opposed to the 5 kilometre limit which was in place since 5 May.

Social visits

Up to 4 people may visit another household for a short period of time but everyone must keep at least 2 metres apart from people they don't live with.

Cocooning

Shops will provide dedicated hours for those who are cocooning (people over the age of 70 and those who are medically vulnerable) with strict social distancing and gloves made available. Shoppers should ideally wear face coverings.

Those who are cocooning can have a small number of visitors to their home. The visitors must wear gloves, face coverings and keep at least 2 metres away from the person who is cocooning.

Funerals

A slightly larger number of people can be in attendance at funerals but numbers will still be restricted to immediate family and close friends and limited to a maximum number of mourners (this number will be announced closer to 8 June) for a limited period of time where social distancing can be maintained.

Work

People who can work safely while maintaining a 2-metre distance from others

Workers, like those who work on their own, as well as other workers who can keep a 2 metre distance from others can return to work. Social distancing requirements continue to apply.

Plans to be put in place by employers and the government

Organisations are to develop plans for a return to onsite working by employees in light of COVID-19, considering:

social distancing compliance

hygiene and cleaning

compliance in higher risk situations

plans for medically vulnerable or pregnant people

extended opening hours to enable social distancing

Shops and other commercial businesses

Shops that can re-open

Small retail outlets can reopen with a small number of staff on the basis that the retailer can control the number of individuals that staff and customers interact with at any one time.

Marts

Marts can be opened where social distancing can be maintained.

Sport, tourism and culture

Libraries

Public libraries may open so long as the numbers allowed in are limited, social distancing is observed and there is strict hand-sanitising in place for anyone who goes into the library.

Group exercise

People can take part in outdoor sporting and fitness activities, involving team sports training in small groups (but not matches) where social distancing can be maintained and where there is no contact.

Easing the COVID-19 restrictions on 29 June (Phase 3)

Introduction

These measures are part of the third phase of lifting the public health restrictions that were put in place to protect us all from COVID-19. They come into effect on top of the measures announced as part of phase 2.

These measures are a part of the roadmap to easing restrictions. They are just an indication of what might happen if everything goes well with restricting the spread of COVID-19 in Ireland. These measures will only come into effect when the National Public Health Emergency Team says that the conditions are right for more relaxation of the restrictions in place to protect us all.

Public health measures

Stay at home

You should still stay at home as much as you possibly can. You can travel no further than 20 kilometres away from your home.

Education and childcare

Childcare for essential workers

The opening of crèches, childminders and pre-schools for children of essential workers will take place in a phased manner. Social distancing and other requirements will apply.

Work

People who can work safely while maintaining a 2 metre distance from others

Organisations can open where employees have low levels of daily interaction with people.

Remote working is to continue for all workers or businesses that can currently do so.

Health and Social Care Services

Phased visiting will begin in hospitals, residential centres and prisons. Consideration will be given to the availability of personal protective equipment (PPE) and other protections.

Shops and other commercial businesses

Retail outlets

The opening of all other non-essential retail outlets will be phased in on the basis of a restriction on the number of staff and customers per square metre so that social distancing can be maintained.

This is to be limited to retail outlets with a street-level entrance and exit and does not include those in enclosed shopping centres due to higher risk.

Cafés and restaurants

Cafés and restaurants providing on-premises food and beverages can re-open. They must comply with social distancing and strict cleaning protocols.

Sport and tourism

Playgrounds

Playgrounds will be allowed to re-open where social distancing and hygiene can be maintained.

Sporting activities

Sporting activities and events can resume “behind closed doors”, where arrangements are in place to enable participants to maintain social distancing.

Transport and travel

Travel restrictions

Travel restrictions may be implemented on numbers travelling to and in major urban centres on weekdays and weekend days.

Public and private transport

Public transport providers are to actively restrict and monitor passenger numbers to ensure compliance with social distancing.

Restrictions are to be implemented on numbers of private cars.

Specific measures will be introduced at ports and airports.

Easing the COVID-19 restrictions on 20 July (Phase 4)

Introduction

These measures are part of the fourth phase of lifting the public health restrictions that were put in place to protect us all from COVID-19. They come into effect on top of the measures announced as part of phase 3 of the roadmap.

These measures are only an indication of what might happen if everything goes well with restricting the spread of COVID-19 in Ireland. They will only come into effect when the National Public Health Emergency Team says that the conditions are right for more relaxation of the restrictions in place to protect us all.

Public health measures

Easing of stay at home

As part of phase 4 of the roadmap, it is planned that you will be able to travel outside your region and beyond the 20 kilometre restriction in phase 3.

Social visits

A slightly larger number of people may visit another household for a short period of time while maintaining social distancing.

Social gatherings

Small social gatherings by family and close friends will be allowed but are to be limited to a maximum number of attendees for a period of time where social distancing can be maintained (for example: small weddings, baptisms).

Other non-commercial social events

Small social (non-family) gatherings will be allowed but are to be limited to a maximum number of participants for a period of time where social distancing can be maintained.

Education and childcare

Crèches, childminders and preschools will open for children of all workers on a gradually increasing phased basis (for example, one day per week) and slowly increasing thereafter.

Work

Employees who cannot work remotely are to be considered first for a return to onsite working.

Depending on the business, measures such as shift work and staggered hours should be implemented to increase the numbers of workers available for work in any 24-hour period, as long as the business can limit the number of workers interacting with each other.

Remote working continues for all workers or businesses that can do so.

Shops and other commercial businesses

Retail

Restrictions can be gradually eased on higher risk services involving direct physical contact for periods of time between people and for which there is a population wide demand (for example, hairdressers).

Cultural and social

Culture and places of worship

Museums, galleries, and other cultural outlets can be opened where people can move freely without coming into contact with others, social distancing can be maintained and strict hand hygiene is enforced on entry.

Places of worship can be opened with social distancing measures.

Sport

Competitions for sports teams (for example, soccer and GAA) can resume, but only where limitations are placed on the numbers of spectators and where social distancing can be maintained.

Public swimming pools can be opened where effective cleaning can be carried out and social distancing can be maintained.

Social and recreational

Hotels, hostels, caravan parks, and holiday parks for social and tourist activities can open, initially on a limited occupancy basis (or number of people per square metre), and then increasing over time. Social distancing measures are to be followed.

Hotel bars remain closed.

Transport and travel

Restrictions will gradually be decreased on the numbers travelling in major urban centres on public transport and in private cars.

Specific measures will be introduced at ports and airports.

Easing the COVID-19 restrictions on 10 August (Phase 5)

Introduction

These measures are part of the fifth phase of lifting the public health restrictions that were put in place to protect us all from COVID-19. They come into effect on top of the measures announced as part of phase 4 of the plan.

These measures are part of the roadmap to easing restrictions. They are just an indication of what might happen if everything goes well with restricting the spread of COVID-19 in Ireland.

These measures will only come into effect when the National Public Health Emergency Team says that the conditions are right for more relaxation of the restrictions in place to protect us all.

Public health measures

Travelling in Ireland

As in phase 4, you will be able to travel outside your region.

Social gatherings

Some larger social gatherings can take place (for example, weddings). These will be restricted due to the risks involved.

Some large social (non-family) gatherings can take place - these will also be restricted.

Restricted movements

Continue to restrict all household contact of suspected cases, who are either awaiting test results or are in 14 days self-isolation.

Education and childcare

Opening of schools and colleges

The following educational institutions can open on a phased basis at the beginning of the academic year 2020/21:

primary and secondary schools

universities

third level education centres

adult education centres

Health and social care services

There is to be a return to normal visiting for hospitals, residential healthcare centres, other residential settings and prisons.

Work

Return to work

A phased return to work across all sectors.

‘Higher risk’ organisations which, by their nature cannot easily maintain social distancing, will implement plans for how they can progress towards the onsite return of a full staff complement.

Remote working continues for all workers or businesses that can do so.

Shops and other commercial businesses

Enclosed shopping centres can re-open, with social distancing in place.

A further loosening of restrictions for services involving direct physical contact for periods of time between people for which there is not a population-wide demand (for example, tattoo, piercing) for later phases due to risks involved.

Cultural and social

Theatres and cinemas

Theatres and cinemas can re-open with social distancing in place.

Social

Indoor recreational venues, such as bowling alleys and bingo halls, can re-open where numbers can be limited, cleaning can be maintained, and social distancing can be complied with.

Pubs, nightclubs and casinos can re-open, where social distancing and strict cleaning can be complied with.

Festivals, events and other social and cultural mass gatherings can take place only in accordance with both indoor and outdoor number restrictions and where social distancing can be complied with.

Sport

Close physical contact sports, such as rugby and boxing, can resume.

Gyms, dance studios and sports clubs can re-open, only where regular and effective cleaning can be carried out and social distancing can be maintained.

Spectators can begin to attend live sporting events only in accordance with both indoor and outdoor number restrictions and where social distancing can be complied with.

Transport and travel

Non-resident tourist travel to offshore islands can resume.

Social distancing and hygiene measures are to continue for public and private transport.

Cork Business Association welcomes the publication of the Government's reopening road map. It provides some much needed clarity to all our members as to when they can reopen and re-employ their colleagues. We have been calling for this roadmap for some time and its publication will assist with a phased, secure and urgently needed return for businesses which have been closed as a result of the Covid-19 restrictions. However this roadmap must be kept under ongoing evaluation and earlier reopening permitted if all public health requirements are achieved within a shorter time-frame.

Some of the measures fall short of what the Cork Business Association has called for in particular we refer to commercial rates. We again reiterate our call for the cancellation of local authority rates for 12 months for all impacted businesses. We also ask for the introduction off a six months Government rent grant of 60% of rent payable to all impacted businesses. It is also essential that critical existing supports such as the Wage Subsidy Scheme are extended beyond the June deadline.

The speedy implementation of these supports will be vital for business and the proposed funds must be available for a rapid drawdown. The elephant in the room here is the formation of a new Government which needs to happen in order to pass the necessary legislation that will be required. The incredibly slow progress towards government creation may yet see a new administration formed, but if the talks fail then the ability to deliver help to businesses will be held up and this could be very costly.

The Government agreed on Saturday May 2nd, at a special Cabinet meeting, a suite of measures to further support small, medium and larger business that are negatively impacted by Covid-19.

It follows the publication yesterday evening of the Government’s Roadmap for Reopening Society & Business, which sets out a five stage plan to ease the Covid-19 restrictions and reopen Ireland’s economy and society. The Covid-19 emergency has had an unprecedented impact on our economy, as well as our society. As we begin the phased reopening of our economy, the Government recognises that businesses require significant additional supports. Today’s package of measures aims to help our businesses to restart, reconnect and rehire staff who have been laid off or furloughed.

The Government has already brought forward a series of measures to support those impacted by this global pandemic. They have included emergency income support such as the Temporary Wage Subsidy Scheme and the Pandemic Unemployment Payment. It is now necessary to introduce a number of additional measures to aid the economy as the Covid-19 restrictions start to be lifted.

Those measures are:

• A €10,000 restart grant for micro and small businesses based on a rates/waiver rebate from 2019;
• A three month commercial rates waiver for impacted businesses;
• A €2 billion Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund (ISIF), which will make capital available to medium and large enterprises on commercial terms;
• A €2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from 3 months to 6 years, which will be below market interest rates;
• The ‘warehousing’ of tax liabilities for a period of twelve months after recommencement of trading during which time there will be no debt enforcement action taken by Revenue and no interest charge accruing in respect of the warehoused debt;
• A commitment to local authorities to make up the rates shortfall, so that local authorities can continue provide full services to the public.

The Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, said:

Covid-19 has created a world that none of us could have imagined just a few short weeks ago. Our collective public health has been targeted; our businesses, and our economy, have been shouldered with an unimaginable burden; and our society is grappling with this new reality. But, by working together, we are minimising the damage. The hard work of the Irish people has ensured that we are getting to grips with this disease, our people are united in caring for one another under the most extreme of circumstances and our businesses are attempting to adapt to this new and most challenging environment.

On top of the measures previously put in place by Government, this suite of measures being outlined today is designed to build confidence, further assist businesses in terms of the management of their companies, and allow them to begin looking to the future and start charting a path forward for weeks and months ahead. We will continue to seek the best ways of supporting our people, and wider society, and rebuilding our economy so that we can get people back to work safely. We will do this by being cognisant of official public health advice and doing what is in the best interests of all our people.

Minister for Business, Enterprise and Innovation, Heather Humphreys TD, said:

The roadmap announced by Government yesterday outlines a pathway to reopening our economy. This suite of supports represents the next phase in our ongoing response to support businesses through the pandemic and will assist them as they plan for the future.

We now have a comprehensive suite of supports for firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst our SMEs.

The new €250 million Restart Fund in particular will be a critically important tool to support small businesses in our towns and villages to reopen their doors and get back on their feet with supports of up to €10,000 available.

 

Minister for Housing, Planning & Local Government, Eoghan Murphy TD, said:

The commercial rates waiver is an important response from Government. This will provide relief to impacted businesses as well as certainty to local authorities as to their funding.

Rates alleviation will be complemented by the establishment of a Restart Fund for micro and small businesses which would provide a further €250m to support ratepayers.  The fund, which will provide up to €10,000 per business, will be implemented either through a rebate or waiver scheme based on rates payment for 2019, and will be targeted more widely at micro and small enterprises that have suffered large falls in revenue as a result of the crisis. Details of the scheme will be further developed by the Department of Housing, Planning and Local Government together with the Department of Business Enterprise and Innovation and the Department of Public Expenditure and Reform.

Minister for Agriculture, Food and the Marine, Michael Creed TD, said:

I welcome the announcement of the expanded Credit Guarantee Scheme. I have worked with my colleagues to ensure that our primary producers (farmers and fishers) would be included in the new Scheme and I am now happy to confirm that they will. Cashflow and liquidity is a key issue right along the food chain and this Scheme will give confidence to all businesses that assistance will be available when required.

The further measures to support businesses impacted by COVID-19 in their planning for reopening include:

• A €2 billion Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund (ISIF), which will make capital available to medium and large enterprises on commercial terms.
• A €2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from 3 months to 6 years, which will be below market interest rates.
•  The ‘warehousing’ of tax liabilities for a period of twelve months after recommencement of trading during which time there will be no debt enforcement action taken by Revenue and no interest charge accruing in respect of the warehoused debt;
• The waiving of commercial rates for a three month period beginning on 27 March for businesses that have been forced to close due to public health requirements.
•  Provision of a Restart Fund for micro and small businessesof €250 million for micro and small enterprises

In addition, Minister Donohoe also welcomed the Banking and Payments Federation of Ireland announcement of an extension of payment breaks for businesses and households to 6 months for those requiring assistance which is being provided to bank and non-bank customers impacted by COVID-19.

It is essential that customers fully engage with their lender to avail of these extensions.

These measures, with a value of over €6 billion show Government’s commitment to supporting businesses.

Continued Stabilisation measures to support businesses announced today include:

1.     Ireland Strategic Investment Fund – Pandemic Stabilisation and Recovery Fund

The Ireland Strategic Investment Fund (ISIF) is revising its investment strategy to establish a sub-portfolio within ISIF called the Pandemic Stabilisation and Recovery Fund.  

This sub-portfolio will invest up to €2 billion of ISIF’s readily available capital in medium and large enterprises (more than €50m in annual revenue or more than 250 employees) to assist them meet the challenge of COVID-19.  It will complement ISIF’s extensive work to date within its existing portfolio of over 100 investments of €2.7 billion invested capital to mitigate the impact of  COVID-19.

The ISIF Pandemic Stabilisation and Recovery Fund will mirror the approach of ISIF’s existing and proven investment strategy:

The fund will act as an accelerator, investing on a commercial basis in businesses that can meet the investment requirements and can use ISIF investment to return to long-term viability.

Investments can be across the range of instruments from senior debt, hybrid instruments to equity, and can be tailored to take account of the particular circumstances of each investee.  This will enable businesses to access the capital they need in the most appropriate form that best suits their individual circumstances.

In making investments, ISIF will seek to maximise the quantum of additional capital that the investee business can access from its existing shareholders and banks, from potential new co-investors and from European sources (such as the European Investment Bank), thereby minimising the amount of ISIF capital that may be needed.  To date, ISIF has led to overall investment levels of three times ISIF’s initial investment.

Further details are available on the ISIF website.

2.       SME Credit Supports

Government moved quickly to put €1 billion of liquidity measures in place for SMEs by reorienting existing supports for SME credit and adding additional measures to address the demands arising from the crisis. These included repurposing the Brexit Loan Scheme, with the agreement of the European Investment Fund, to become the SBCI COVID-19 Working Capital Scheme.  Minister Humphreys also announced an expansion in this scheme to bring it to €450 million, an expansion in the Future Growth Loan Scheme to above its original allocation of €300 million, and improvements in the maximum loan size available to COVID-19 affected microenterprises from Microfinance Ireland along with reductions in the interest rates.  This means that microenterprises can avail of loans of up to €50,000 with no interest and principal repayments in the first six months.  In addition, Minister Humphreys has introduced a range of grant measures, such as the €180m Sustaining Enterprise Fund for manufacturing and international services sector.

Today, Government is announcing the €2 billion COVID-19 Credit Guarantee Scheme.  It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years.  SMEs will be able to go directly to the banks in the Scheme, and the guarantee can be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less.  It will be available to all SME sectors, including primary producers.

Interest rates will be below current market rates.  This Scheme forms a major component of the Government’s strategy to aid SMEs in these difficult times.

The COVID-19 Credit Guarantee Scheme is a further development of the existing Credit Guarantee Scheme which is already available from AIB, BOI and Ulster Bank, and it will be possible for other lenders to get access to the Scheme.  Lenders will be subject to a portfolio cap of 50%.  This reduces the contingent exposure to the Exchequer, meaning that the size of the Scheme can be larger.

Implementing this scheme will require legislation, the drafting of which has been approved by Government. In parallel with the drafting of the legislation and its passage through the Houses of the Oireachtas, the Department of Business, Enterprise and Innovation, the Department of Agriculture, Food and the Marine, the Departments of Finance and Public Expenditure and Reform, and the Strategic Banking Corporation of Ireland will work to put in place arrangements to ensure that the Scheme can be implemented as soon as possible after the enactment of the legislation.

3.     Revenue Warehousing of Tax Forbearance

The Revenue tax deferrals have been a vital liquidity support that is easily accessed by those businesses severely impacted by COVID-19.  This allowed these businesses to retain cash, which proved to be a key liquidity support and also gave an assurance that the State will support these businesses through the pandemic.  It is important that companies availing of this forbearance must continue to file tax returns and keep in contact with  Revenue, which ensures tax compliance and assistance is targeted at those most in need.

It is also recognised that businesses need clarity on how and when this level of tax debt forbearance will be gradually unwound to allow firms to trade their way back to profitability and repay this assistance.  In the normal course, Revenue would work closely with businesses to put in place arrangements, appropriate to the circumstances and viability of each business, to secure payment of those debts over a reasonable time frame.

However, in the current circumstances, businesses that have had to close or have been significantly impacted by the restrictions will not be able to enter into arrangements to clear the COVID-related tax debt, pay their normal trade and other non-Revenue creditors, make any necessary restructuring to deal with the new trading arrangements in the context of social distancing, build up their stock, etc. In that context, Revenue will Warehouse Deferred Tax Liabilities associated with the COVID-19 crisis.  This will represent a direct support for affected businesses where a commitment to a phased payment arrangement is not possible.

Arrangements will be put in place to allow debt that cannot be paid during the COVID-related period, to be warehoused interest-free for a year from recommencement of trading, during which time there will be no debt enforcement action taken by Revenue in respect of the debt.  Moreover, there will be no interest charge accruing in respect of the warehoused debt (no capital or interest payments).  Prior to the expiry of the warehousing period, the business will be expected to engage with Revenue to reach an agreement on an exit strategy more suited to the specific business needs and the need for continued viability.  Businesses will qualify for a significantly reduced rate of interest of 3% on outstanding debts on agreement of such arrangements, to be set out in legislation. For continued qualification by businesses for these arrangements, it will be a prerequisite that the businesses remain compliant with all their return filing and tax payment obligations in respect of tax periods that postdate the periods covered by the warehoused debt.   The operational details are being finalised and the necessary legislative amendments will be brought forward in Finance Bill 2020.

The scheme will apply to businesses in all sectors of the economy who have been negatively impacted by COVID-19, and further underlines the Government’s commitment to supporting business and positioning the economy for return to a new normal when the time comes.

Further details are available on the Revenue website.

4.     Commercial Rates Payment Break/Reductions

The Government prioritised support for those businesses most directly affected by Covid-19 with its decision in March to defer rate payments for a three month period for the hospitality, retail, leisure and childcare sectors.

While a review of options to support enterprises and employment is being commenced, the Government recognises that many businesses are facing immediate difficulties and uncertainty. To provide clarity, commercial rates are being waived for a three month period beginning on 27 March for businesses that have been forced to close due to public health requirements. This measure will complement the tax, banking and SME measures also announced today.

The Government will continue to actively engage with business owners and representative bodies. Local Authorities, who have longstanding experience in dealing with ratepayers and showing an understanding of their financial situations, are assessing the impact of Covid 19 by engaging directly with individual ratepayers, recognising that there may be impacts on sectors outside of those initially identified as being most under threat. It is estimated that this waiver will reduce Local Authority income by €260 million and the Exchequer will meet these costs.

5.     Provision of a Restart Fund for micro and small businesses

The economic impacts of Covid-19 have been felt across the country and particular for small or micro firms. Measures that have been announced including income support schemes and enhanced liquidity supports have played a role in supporting these firms but as we move towards the next phase of the pandemic it is necessary to introduced further targeted supports in this area.  In this context it is intended to create a Restart Fund of €250 million for micro and small enterprises.

The purpose of this fund will be to assist these businesses in reconnecting with the market, their employees and their customers. Details of the scheme will be worked on by the Department of Public Expenditure and Reform in consultation with the Departments of Business, Enterprise and Innovation and Housing, Planning and Local Government and finalised in the coming weeks but it is intended that the fund will operate through a system of rebates/waivers of commercial rates payments from 2019. It is intended that companies will receive a total amount equivalent to no more than their 2019 rates bill and that there will be a cap per business of €10,000. This fund can act as a further targeted support to small and micro enterprises that have been impacted by Covid-19.