Continuation of the Wage Subsidy Scheme into 2021, waivers on commercial rates, and a reduction on VAT are essential measures to ensure Galway businesses emerge from the recession, and not go under during it.
This is the view of the Galway Chamber, and arises from the findings of its Business Recovery Forum. The forum was established in April, and liaised with the retail; hotel; ICT; advisory; transport, storage, and logistics; MedTech; academic; property; and non-food tourism sectors in order to shape the Chamber’s lobbying efforts when engaging with Government on its economic recovery plans.
Several common recommendations were highlighted in the report, as being crucial to facilitate business recovery. These recommendations include continuation of the Wage Subsidy Scheme in certain sectors into the first quarter of 2021 and tapering it off on a reducing scale in order to allow businesses the time and opportunity to plan/manage cash flows.
The report also calls for commercial rates to be waived for the period of lockdown closure and for three months after reopening. For businesses which have stayed open, but have experienced a significant decline in their business, there should be a rate of proportional reduction, so they are not at a disadvantage.
VAT reduction is recommended for the retail and hotel sectors. Retailers are asking for VAT to be reduced from 23 per cent to 10 per cent for 12 months. This, the report argues, would give certainty, stimulate cash flow, and help businesses remain solvent. Hotels recommend that the tourism rate of VAT needs to be reduced to zero initially with a phased return to nine per cent at the end of an agreed period.
“As we work to plot our way out of this deep recession," said Galway Chamber president Dave Hickey, "Galway Chamber has been talking in depth to our members – from every business sector, large and small, rural and urban – to articulate their challenges in re-opening Galway.”
