Companies affected by foot-and-mouth to get partial rates grant

Businesses in the North that can prove they are suffering financially because of the foot-and-mouth crisis will receive grants from the Northern Ireland Executive to cover the cost of their rates bill for three months.

First Minister Mr David Trimble and Deputy First Minister Mr Seamus Mallon yesterday presented a new "Help for Businesses Scheme" to assist private, voluntary and community-based businesses including cattle markets and guest houses.

The scheme will provide assistance to firms that can show they have lost more than 15 per cent of their turnover because of the need to contain and eradicate foot-and-mouth disease in Northern Ireland.

Executive officials refused to disclose the value of the rates fund but said businesses had until June 20th to register their applications for grant aid.

The Irish Hotels Federation has called on the Government to replicate the scheme in the Republic where there has been no direct payments to any person or group outside farming as a result of the economic impact caused by the single foot-and-mouth outbreak.

While the Government has set up a special Task Force to help revive the economy of the Cooley peninsula, it could be some time before direct aid will reach the non-farming community there. But there is a Government plan to make £8 million (€10.2 million) available to carry out a worldwide campaign to bring tourists back. This is made up of £3 million from Bord Failte and £5 million from the Department of Finance.

Tourism, the largest industry in the Republic, was badly hit by the foot-and-mouth crisis when tens of thousands of potential tourists cancelled their visits here. It has been estimated that the industry could lose as much as £600 million as a result of the crisis.

A recent survey by Price water house Coopers (PwC) estimated that the initial cost of foot-and-mouth to the Northern Ireland economy was likely to be up to £200 million sterling (€328 million). PwC estimates that the tourism sector alone has lost £100 million since the first case was diagnosed.

The Help for Business Scheme is a direct response from the Executive to pleas for help from the business community.

Mr Philip McDonagh, chief economist with PwC, said it was a positive move that would alleviate a significant drain on many businesses' cash-flow.

"The next three months will dictate the medium-term health of the economy but this clearly is a local reaction to local circumstances and should be welcomed," Mr McDonagh said.

Businesses in the North will not receive cheques from the Executive towards the cost of their rates bill; instead they will be paid directly to the Rate Collection Agency in Northern Ireland to be credited to the applicants' rates accounts.

Mr Trimble and Mr Mallon said the new scheme was part of a co-ordinated strategy to provide "practical help to businesses in the North".

"This includes measures such as the deferment of rates, promotion of a rural stress helpline, advice and support on employment and associated training opportunities, and the launch of a £1 million tourism recovery strategy by the Minister of Enterprise, Trade and Investment, Sir Reg Empey," the ministers said.

Mr Eric Bell, chairman of the Northern Ireland division of the Institute of Directors, said the grant to cover rates for the three months up to May 31st was "the most direct and useful measure" to date .

"It is vitally important that Northern Ireland business recovers swiftly from the effects of foot-and-mouth disease so that our economic growth is not jeopardised," Mr Bell said.