Government's multi-billion euro package to save the economy: Here's how it affects you

Government's multi-billion euro package to save the economy: Here's how it affects you
Photo: Stephen Collins /Collins Photos Dublin

The Government has unveiled its multi-billion euro stimulus package.

Taoiseach Micheál Martin described it as an "unprecedented package" of measures to help stimulate the economy.

He said: "No-one should be in any doubt about the fact we are not returning to pre-March reality.

"The economic recession is the most rapid and dramatic ever recorded."

Mr Martin said the plan is to protect jobs and create new ones.

Among the measures include a new Employment Wage Support Scheme that will succeed the Temporary Wage Subsidy Scheme which will run until April 2021.

It was announced that the Pandemic Unemployment Payment will be extended to April next year.

There will also be a Stay and Spend initiative for people holidaying in Ireland.

Mr Martin said the staycation grant means people can get tax back with a cap of up to €625.

He said this figure is not a target, but a cap for the grant.

"In October, November and December there will be a need to incentivise people to go on holidays at that time," he said.

The package also includes:

  • 0% interest for first year of SME loans 
  • Restart Grant for Enterprises is being extended and expanded 
  • The waiver of commercial rates extended until the end of September 2020 
  • A €2 billion Covid-19 Credit Guarantee Scheme and other business finance measures, including supports for start-ups.

Mr Martin added: "The extensive package of measures is an ambitious and comprehensive response to an unprecedented crisis.

"Every family, community and business in our country has felt its impact.

"It sets a clear and urgent agenda."

Tanaiste Leo Varadkar said the package is worth more than €5 billion.

"We already pumped billions of euros into the economy and we know they have made a difference and we have made significant progress in restarting our economy."

There will also be a Stay and Spend initiative for people holidaying in Ireland.

Mr Varadkar also said that it is the biggest credit guarantee scheme in the history of the state.

"We want to help you all through this and together we can return to prosperity, growth and full employment," he added.

Green Party leader Eamon Ryan said the package will support those whose job is most at risk.

"Measures to support our business can help give certainty to employers and employees," he added.

"Ireland's economic needs to be sustainable and durable as well, not just from an economic and social point of view but also from an environmental and climate perspective."

Tanaiste Leo Varadkar said the decision to cut VAT will help the hospitality sector.

"The big beneficiary of that will be the retail sector - those shops have really suffered so restaurants and hotels will really benefit too," he said.

"The whole idea of our incentive is and tax incentive is to get people spending money on domestic tourism and get people back spending money into the economy."

Taoiseach Micheal Martin said the changes to the first time buyers' grant will not push up house prices.

The Help to Buy scheme relief for first-time buyers to be increased from €20,000 to €30,000 on the price of new homes.

Mr Martin said: "No, I don't think it will (increase house prices)... I think it is very significant for people who wish to buy a house. I think it will help home buyers and improve affordability for people."

"All sorts of substantial funding has been provided to the Department of Housing to deal with increasing supply," he said.

Employers will be paid €3,000 for every apprentice they hire under a scheme developed by Higher Education Minister Simon Harris, under the July Stimulus plan.

More in this section

Sponsored Content