The Restaurants Association of Ireland (RAI) has said it is deeply concerning that some businesses are still awaiting payment of the Increased Cost of Business (ICOB) grant.
A spokesperson for the Department of Enterprise, Trade and Employment confirmed to RTÉ News that of the 72,314 firms approved for the scheme to date, 71,858 have received their first payment.
But of the 43,825 businesses that were registered for a second payment, just 26,729 have received that.
Announced in last October’s budget as a measure to help firms struggling with rising costs, the ICOB scheme has an allocation of €257m and so far, €209m has been paid out under it.
A total of 120,531 businesses have been deemed to be eligible to apply for it.
The second payment was agreed by the Government in May as part of a suite of measures aimed at further helping to address costs for SMEs.
It is only available to businesses in the retail and hospitality sectors.
“Further verification is required in relation to the second payment to ensure that businesses are in the relevant sectors,” a department spokesperson said.
But the RAI said the delay in paying out the grant to recipients is creating difficulties.
“The fact that many businesses within certain local authority areas where bottlenecks in the processing of the ICOB scheme exist are still waiting for payment is deeply concerning,” said Adrian Cummins, CEO of the Restaurants Association of Ireland.
“This scheme was first announced in last October’s Budget, with the expectation that payments would be completed by the first quarter of this year.”
“Every day, the Restaurants Association of Ireland receives correspondence from distressed business owners still waiting payment in these lagging local authority areas.”
“These restaurant and café operators are checking their bank accounts daily, hoping for the much-needed ICOB funds they’ve been approved for to have landed, but to no avail.”
Hospitality businesses claim they have come under growing pressure to meet rising costs since the reduced 9% VAT rate for the sector ended last year.
The RAI has pointed to a string of closures in the sector, with a total of 577 restaurants, cafes and other food-led businesses closing their doors since last September.
As a result, it said payment of the ICOB is critical for those continuing in business.
“Some businesses have been told by their local council that payments will take another six to eight weeks,” Adrian Cummins said.
“It is crucial that the Minister now takes immediate action to engage with any local authorities that are behind schedule and ensures that these payments are made without further delay.”