REVIVING WEXFORD
HEALTH CHECK SURVEY INTO CO WEXFORD’S BUSINESSES HIGHLIGHTS NEED FOR ONGOING SUPPORTS, AS BUSINESS OWNERS ADAPT TO THE NEW SOCIAL DISTANCING ENVIRONMENT, WRITES DAVID LOOBY
EMPLOYERS working across nine different business sectors in Co Wexford have highlighted the shocking scale of devastation wrought by the Covid-19 pandemic on them, in a new landmark survey.
Providing a snapshot of the economic health of the county, the survey – which had 217 participants – highlighted how only 38 per cent of businesses were open in early May prior to the lifting of Phase 1 of restrictions. Over half of businesses have had to cut jobs (54 per cent), their markets affected by 35 per cent.
When asked what the three greatest challenges facing their business are over the coming 12 months, 73 per cent of the 217 business owners said: cash flow, 55 per cent replied consumer demand and 24 per cent said social distancing.
When asked how long their business will need the Temporary Covid-19 Wage Subsidy Scheme to remain in place, they said 12 months.
Respondents called for additional targeted grants, rather than loans to help them. 44 per cent of respondents said they thought grants for advertising and marketing were key to their survival.
Respondents called for supports to introduce remote working and to reduce bureaucracy associated with accessing R&D grants. They also highlighted the need for the government to provide grants for introducing Covid-19 protocols into business and want the government to pay all redundancy costs incurred by employers as a result of Covid-19.
57 per cent of businesses surveyed say they can make financial contributions to supports: (21 per cent being the average contribution businesses say they are willing and able to make).
74 per cent of respondents stated categorically that there was a requirement for commercial rates to be reduced or suspended in 2020 and 39 per cent suggested a reduction of VAT to 9 per cent. A further 14 per cent of respondents called for all taxes to be lowered.
On the banking and insurance front: 8 per cent of respondents appealed for a lowering of interest rates, 20 per cent requested a holiday on repayments and 14 per cent wanted the removal of banking fees.
36 per cent called for reductions of insurance premiums and 25 per cent called for insurance premium rebates to be provided to businesses for the duration of closure.
The 23 respondents from the retail segment of the survey found that a titanic shift has occurred within their industry since March. Some exceptions included, pharmacies, off-licences and supermarkets.
Most retailers expressed concerns regarding not only the time-frame for re-opening but the exact manner of how shoppers will return.
Report author Prof Kevin Sludds said: ‘The fact that firm social distancing requirements are set to continue well into the future, wedded to a deflated economy, makes the remaining months of 2020 challenging. Businesses must plan for a wholly distinct economic landscape and adapt to shifting customer patterns of buying and behaviour.
‘With an emphasis on social distancing, trust will play a fundamental role in customer’s minds when they choose which retailer they will select. Online retail has, of course, become a credible alternative to the physical purchasing of items for many and this trend is set to be emboldened.’
The key actions for retail that were suggested are: a rent subsidy of 60 per cent for 12 months, training and mentoring on how to trade successfully online, the introduction of a ‘digital tax’ on all goods bought online, free car parking to entice customers to shop in town centres, reducing the level of paper work to access government grants and supports and grants to cover cost of point of sale systems to help reduce physical contact.
On the tourism front the report suggests that Fáilte Ireland should fund a National Confidence Campaign and create a new Quality Assurance
Accreditation Mark for ‘Safe’ Businesses. That County Wexford should ensure ‘first mover advantage’ by heavily promoting itself as the country’s number one tourist destination for domestic tourism, accelerate the greenways and blueways multi-activity recreational trails program, and by having ‘A County Wexford is Open’ marketing campaign.
Grants to develop virtual experiences within our tourism attractions and encourage the people of County Wexford to visit our tourism amenities, locations and attractions in the immediate future were also suggested.
The services segment provided the largest number of respondents at 39, including those working as solicitors, hairdressers, estate agents, nail technicians, auctioneers. They want stringent measures to be activated against the growth in the black economy, while stressing the importance of capital investment projects proceeding by government.
They are also seeking payment breaks to businesses on loans up to 12 months without charging ongoing interest on deferred payments, online trading vouchers to be increased from €2,500 to €5,000 at 90 per cent grant aid, grants for implementing cashless and contactless payment systems, training in Covid-19 compliance, infection control and return to work protocols.
The hospitality sector (including hotels, bars and restaurants) clearly stands at the coalface of some of the most profound negative effects of Covid-19. Of the 33 respondents just two answered affirmatively that they were still trading, with the remaining now shuttered
A menu of options was sug
gested to get the sector back, including: reducing the VAT rate to its previous 9 per cent, that each adult in the County should receive a voucher worth €500 to shop locally, introduce a ‘Heroes’ Voucher’ of €1,000 for the county’s courageous frontline workers.
They want the SBCI to introduce a new term loan facility to help refinance all existing debt over a ten year period and grants to adapt premises for takeaway/delivery service, accommodate outdoor seating and implement technology for table ordering.
Agriculture, healthcare workers, hauliers and the motor trade, manufacturing, construction also made detailed representations.
As for marketing, business owners suggested that County Wexford should ensure first mover advantage in domestic tourism. ‘Failte Ireland should fund a National Confidence Campaign and create a new Quality Assurance Accreditation Mark for ‘Safe’ Businesses and reaffirm the mantra of ‘shop local’ through a targeted local marketing campaign.
The businesses other priorities include top quality stable and faster broadband, fast-tracking greenway projects and the upgrading of Rosslare Europort.
BUSINESSES MUST PLAN FOR A WHOLLY DISTINCT ECONOMIC LANDSCAPE AND ADAPT TO SHIFTING CUSTOMER PATTERNS OF BUYING AND BEHAVIOUR