Mattie McGrath condemns Labour's zero Covid-19 strategy; warns on SMEs
Mattie McGrath criticised the Labour Party's zero Covid-19 strategy, arguing it would "kill off the entire domestic economy" and is a regressive, utopian approach that cannot work. He warned ongoing lockdowns are already putting the labour market into a deep hole and that small businesses have largely exhausted their working capital.
Main critique
He said the real problem with the Labour Party approach is that the zero Covid-19 strategy will kill off the entire domestic economy. He described the idea as pie in the sky and said it simply will not work.
Impact on SMEs and workforce
McGrath highlighted that Ireland's SME sector accounts for 45% of GDP and, he said, implies 70% of the Irish workforce - arguing lockdowns are having a very severe impact on those sectors. He said many small businesses had between 30 and 90% of working days of working capital at the beginning of the pandemic, and that capital was largely gone by last summer, so the end of government schemes will reveal the full extent of the pain.
Multinationals versus domestic firms
He contrasted the effects on domestic small businesses with very large companies operating out of Ireland, naming Facebook, Apple, Twitter, Google and large multiples as examples that would not be as impacted by the strategy. His point was that the burden of prolonged lockdowns falls disproportionately on local SMEs.
Social and economic consequences
He warned that prolonged lockdowns put the labour market into a deep hole, risk bank foreclosures and payment and insurance pressures on small businesses, and cited concerns about suicides raised by Deputy Hohmeen and others. McGrath argued the approach is regressive for working-class people and urged reconsideration of the zero Covid-19 strategy.
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Thank you. The real problem with the Labour Party approach is that the zero Covid-19 strategy is that it will kill off the entire domestic economy. Interestingly, it will not impact upon the very large companies in the world today, some of whom operate out of Ireland. These include Facebook, Apple, Twitter, Google, etc. and the large multiple. So, if Ireland's SME sector accounts for 45% of GDP and they imply 70% of the Irish workforce, the lockdowns are having a very severe impact on those sectors. And I can't understand the Labour Party being a party of the working class people who want to have this regressive strategy put on them as well. The Irish Government, through ongoing lockdowns in Ireland, is already putting the labour market into a deep hole. Most of these small businesses in Ireland, as I said, they had between 30 and 90% of working days of working capital at the beginning of the pandemic. In the real world, this means that the capital was already gone last summer. So, when the government scheme runs out, the real extent of the pain will emerge. Also, the longer the lockdown is kept in place, the less likely how the business is reopening. So, it's just not acceptable. And the amount of suicides that Deputy Hohmeen and others have said, and they want a small business. And when the banks foreclose on them, when the payments, insurance, everything else. So, this is pie in the sky, really. This utopian idea that we can have this, you know, zero strategy. We cannot. It won't work. Simple as that. Goor maan gud.
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