April 13, 2021
Need to ensure ‘hidden debt’ does not hinder SME post-Covid recovery – Louise O’Reilly TD

Sinn Féin spokesperson for Enterprise, Trade, and Employment, Louise O’Reilly TD, has said that there is a need to monitor the current situation for SMEs and to ensure that ‘hidden debt’ does not affect their ability to bounce back to profitability in the medium-term, post-Covid.

Speaking this morning, Teachta O’Reilly said:

“From speaking with many small and medium enterprises (SMEs) and family businesses, there is a fear that ‘hidden debt’, such as warehoused tax debts and commercial rent arrears, could hinder their ability to bounce back to profitability when we exit the current crisis.

“Data revealed to me by the Minister for Finance has shown that SMEs have warehoused over €1bn in tax liabilities under the Debt Warehousing Scheme, a support scheme for businesses affected by Covid-19 restrictions.

“This scheme is incredibly important for SMEs, microbusinesses, and family businesses. It has improved short-run cashflow for these businesses, however, the government must ensure that the level of tax debt that is being warehoused does not affect their ability to bounce back to profitability in the medium-term, post-Covid.

“SMEs are the backbone of our economy, especially in terms of employment, so the fact they have warehoused more tax debt than any other sector is a concern. 

“The government needs to look at this specific issue and assess the sort of structures that may need to be put in place for businesses to bounce back, and for people to re-enter employment, as we exit the crisis.

“I know that many businesses have suggested solutions, such as repayment of tax debt over an elongated period or reduced interest rates, which would ease the burden of these tax liabilities and ensure they can bounce back as we exit the Covid crisis.

“However, as is ever the case in these situations, a two-way dialogue between business and the state will inevitably uncover the most workable solution for both parties.

“I would encourage the Tánaiste and Minister for Enterprise, Trade, and Employment, and the Minister for Finance, to begin these conversations immediately.”

Follow us online

Latest Tweets

I was honoured to attend the opening of a new parkway in Lower Shankill.

This bright new space will be a key asset to the local community, providing families and young people with a place to play, socialise and enjoy. 1/3

Government and Regulator must get to grips with Ireland’s soaring network costs that put upward pressure on electricity bills from October 1st - Darren O’Rourke TD and Senator Lynn Boylan


@orourke_darren @LNBDublin

Archibald calls on Department of Health to continue Women’s Aid funding https://vote.sinnfein.ie/archibald-calls-on-department-of-health-to-continue-womens-aid-funding/ @CArchibald_SF

The longer Fianna Fáil and Fine Gael are in government the worse the housing crisis gets – record child homelessness, record high rents, rising house prices and families under increasing pressure from rising mortgage interest rates. @EOBroin


Load More