A DONEGAL TD has called for emergency measures to be put in place immediately to help businesses survive the COVID-19 crisis.
Fianna Fáil TD Charlie McConalogue said that many small and medium sized businesses in the county will face very significant cash flow issues in the short-term.
McConalogue has called on the Revenue to adopt a flexible and supportive role.
Fianna Fáil has asked for measures to be taken whereby businesses that make a VAT return but cannot make the payment should be allowed to defer the payment without the imposition of any interest or penalties.
McConalogue said: “Businesses are facing an unprecedented situation and need to know that they will be able to keep their heads above water.
“Additional supports are needed in the form of deferral of VAT and PRSI tax payments where the businesses are experiencing cash flow problems.
“Banks also need to issue clear guidelines on loan repayment deferrals.
“Local Authorities should also consider allowing businesses that genuinely cannot afford payments to be allowed defer the payment. These steps are necessary so that businesses can keep a positive cash flow.”
In terms of insurance Deputy McConalogue said it was wrong that insurance companies are attempting to abdicate their responsibilities when it comes to business interruption cover.
He said: “It is completely illogical and unacceptable for insurance companies to say they will only provide cover for business interruption policies which listed Covid-19 by name.
“Covid-19 was only identified earlier this year and listed as a notifiable disease in Ireland on February 20th. I would call on all insurance companies to review this stance and remove this unfair clause.
“We have to ensure that banks, insurance companies, the Revenue and others play their part to assist businesses at this time.”
