Government launches €7.4 billion Jobs Stimulus to help businesses re-open, get people back to work and promote confidence
The Government has today announced the July Jobs Stimulus, a €7.4bn package of measures designed to stimulate a jobs-led recovery and build economic confidence while continuing to manage the impact of Covid-19.
Launching the Jobs Stimulus, the Taoiseach, Micheál Martin TD said:
"The stimulus package announced today will protect existing jobs while creating new and sustainable employment options in the months and years ahead. These measures will support small and medium businesses, give young people greater opportunities in training and education, support workers who have lost their jobs because of the pandemic and rejuvenate communities worst affected by the economic impact of the virus. This is a comprehensive plan which will boost the economy and bring confidence back to towns and villages across Ireland.
The July Jobs Stimulus will provide a boost to the economy, building confidence and moving us towards a more sustainable future across all of our regions. This is the next stage of the national recovery and will immediately build on the billions in supports already provided during the crisis."
Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar TD said:
“This has been a time of enormous stress and strain for employers and their staff. We’ve already pumped billions of euro into the economy through wage subsidies, the PUP, cash for businesses, low cost loans and commercial rates waivers. We know these actions have made a difference. We’ve made enormous progress on suppressing the virus, and significant progress too on restarting our economy. More than 280,000 people have already got back to work. Repairing the damage wrought on the economy – and keeping the virus contained – is vital for the wellbeing of our people. Today’s stimulus package is the next step in our national recovery story. It is designed to help businesses which haven’t reopened yet and those struggling to do so. We have listened to businesses and responded with a package of scale and speed to meet their most immediate needs. Our main objective is to save jobs and create new ones.”
Covid-19 has had an enormous impact on communities, businesses, families and individuals across the country. The priority of the Government remains the wellbeing of our people and communities. We are now increasing our focus on business and on getting as many people as possible back to work.
Minister for Climate Action, Communications Networks and Transport, Eamon Ryan TD said:
"This July Jobs initiative is a substantial first step on our road to a sustainable recovery. It invests in our people and our infrastructure in a way that will provide jobs and support our climate and environment goals. We can and will get through this, and we can build back greener and better, for the sake of our children, our communities and our planet."
The measures being launched today are designed to do 4 things:
1 Backing Ireland’s businesses
- A new Employment Wage Support Scheme will succeed the Temporary Wage Subsidy Scheme, and run until April 2021.
- 0% interest for first year of SME loans
- Restart Grant for Enterprises is being extended and expanded.
- The waiver of commercial rates extended until end-September 2020
- A €2 billion Covid-19 Credit Guarantee Scheme,
- other business finance measures, including supports for start-ups
2 Helping people especially young people, get back to work
- Extension of the Pandemic Unemployment Payment (PUP) to 1st April 2021
- €200 million investment in training, skills development, work placement schemes, recruitment subsidies, and job search and assistance measures
- 35,000 extra places will be provided in further and higher education.
- Further supports for apprenticeships
3 Building confidence and investing in communities
- Financial Certainty through the Enterprise Wage Support Scheme, the Pandemic Unemployment Scheme, Rates waivers etc.
- €500 million investment in communities
- Investment in schools, walking, cycling, public transport, home retrofitting, and town & village renewal
- Tax measures including a temporary reduction in the standard rate of VAT
- Stay and Spend initiative
- Targeted measures for most vulnerable sectors
4 Preparing Ireland for the economy of the future
- €25 million Investment in Life Sciences
- Training and Skills Development
- €10 million to be provided under a New Green Enterprise Fund
- Increase in Seed and Venture Capital for innovation driving enterprises
- Additional supports for IDA promotional and marketing initiatives targeting jobs
- Additional supports to businesses to develop their online presence.
- €20 million Brexit fund to help SMEs to prepare for new customs arrangements
- Expansion of Sustaining Enterprise Fund scheme
The July Jobs Stimulus is the next step in the Governments response to the Covid-19 pandemic. Later this year the Government will set out a National Economic Plan, to chart a long term, jobs-led recovery. It will set out how we secure our public finances in a world where we must live with Covid-19, while driving efforts to decarbonise our economy and prepare for the next phase of technological transformation.