Leading Economist: Recovery Plan Is "Reassuring", But Needs Tweaks.

€4 billion programme unveiled yesterday.

A leading economist says the bones of the €4 billion National Economic Recovery Plan are "reassuring" but it needs tweaks.

Among the elements announced yesterday are phasing out of the Pandemic Unemployment Payment by February

The Employment Wage Subsidy Scheme is being extended until the end of the year.

Sector specific supports have been announced for tourism, events and the Arts

Austin Hughes is Chief Economist at KBC.

Speaking to Kildare Today, he says its a good plan, but may need editing by October's budget.

Austin Hughes joined Clem Ryan on Wednesday's edition of the programme

The Economic Recovery Plan (ERP) sets out a framework for recovery as we emerge from the COVID-19 pandemic:

Horizontal Supports which will continue to aid sectors include:

• Extending the COVID Restrictions Support Scheme (CRSS). Revisions will see payments for businesses reopening of up to €30,000.
• A commitment to extend Employment Wage Subsidy Scheme to 31 December.

Arts and the Events Industry

• For the live performance industry, the new MEBAS (Music and Entertainment Business Assistance Scheme) opens for applications on 9 June. This payment is targeted at helping not only bands and musicians, but suppliers and music businesses. Payment levels include:
  • €2,500 for businesses with a VAT-exclusive turnover of €20,000 - €50,000 with minimum business costs of €3,000;
  • €4,000 for businesses with a VAT-exclusive turnover of €50,000 - €100,000 with minimum business costs of €6,000;
  • €5,000 for businesses with VAT-exclusive turnover in excess of €100,000 with minimum business costs of €7,500;

The first allocations under the €25m LPSS (Live Performance Support Scheme) shortly.

The release of funding for local authorities with €5m to support live music in villages and towns across the country has been confirmed.

Amounts of €285,000 are now available to the Dublin local authorities, and €143,000 to other local authorities to facilitate programming of outdoor live performances over the summer months, animating town centres for local communities as public health considerations permit.

And a separate €11.5m new fund for the entertainment industry, including festivals, conferencing and large events, was agreed.

The Events Sector Covid Support Scheme (ESCSS) will support SMEs which are not eligible for the CRSS. 

Tourism

• Extension of the 9% VAT rate to September 2022.  This will continue to act as a stimulus for the sector as it moves towards recovery.
• Additionally, the Fáilte Ireland Business Continuity Scheme continues to support businesses not covered by the CRSS.   
• Tourism businesses will also benefit from the extension of the commercial rates waiver to September 2021.
• Bullet CRSS payments to help reopenings, with up to €30,000 each.

Sport and Gaeltacht

Horizontal supports will also continue to give essential help to Sports organisations and to businesses based in Gaeltacht regions.