The organisation representing Irish family-owned businesses has given a cautious welcome to the July Stimulus Package unveiled by the Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar.
Family Business Network Ireland is the Irish Chapter of the International Family Business Network. It was founded in 2013 by leading Irish business families and operates as an all-island organisation. It is estimated that approximately 75% of Irish owned firms are family businesses and that these businesses contribute over 50% of Ireland’s GDP and employ around half of the workforce.
Commenting on the €7.4bn July Stimulus Package, John McGrane, Executive Director, Family Business Network (FBN) Ireland, said: “As local companies employing over half of Ireland’s workforce, family businesses very much welcome the expansion of the Restart Grant and the extension of the commercial rates waiver announced by the Government today. The continuation of payroll supports through the new Employee Wage Support Scheme is also a positive move – the details of which will be examined further over the coming days.
“These direct supports provide family owned companies with the cash and breathing space to quickly rebuild their businesses. It is now vital that businesses can quickly access the new cash grants without burdensome administrative barriers being put in place. The new staycation rebate will also provide a much-needed lifeline for hotels and restaurants in the off-peak months.
“Although family businesses commend the introduction of the new Stay and Spend tax rebate and the other new measures aimed at protecting the hospitality and tourism sector, Government can and must do more. The scale of the crisis facing the sector industry requires bold action. To protect the viability of family businesses in the sector, we call on Government to replicate the UK’s decision to reduce VAT for the hospitality sector to 5%.
“Irish families in business are not expecting charity but Government must put in place the incentives to allow indigenous businesses to not only continue trading, but also to start hiring again. A reduction in the lower rate of employer PRSI as part of Budget 2021 would be an important first time.
“Our regions depend massively on the incomes and taxes that these locally-owned employers generate day in and day out. Let’s make sure that through the roll out of the measures announced today and the development of the National Economic Plan, family businesses are at the heart of Ireland’s recovery.”