Local businesses need urgent financial support

Closed businesses for COVID-19 pandemic outbreak, closure sign on retail store window banner background. Government shutdown of restaurants, shopping stores, non essential services.

Local business owners have taken to Facebook to voice their concerns regarding forced closures, the associated ERTE scheme and a lack of financial support from the Spanish authorities. Organised by the Party for Independence of Orihuela Costa (PIOC) the video can be viewed at: https://fb.watch/3cbB80YTXh/
Owners from key long-standing local bars, cafes and restaurants including The Stray Sod, Paddy’s Point, Spud Murphy’s, The Emerald Isle and O’Riordans have joined forces to point out the hardships facing the Orihuela Costa business community, which is suffering due to the on-going pandemic and lack or tourists and is currently the victim of the recent second enforced closure.
Hazel, co-owner of Paddy’s Point, La Zenia said: “The hospitality industry has received little or no direct aid since the beginning of this pandemic, which is incomprehensible, particularly when you compare this to countries such as France, Germany and the UK, which has received huge grants and injections of cash.”
Lisa from popular Playa Flamenca eatery Spud Murphy’s explains how for 18 years they have paid into the social security system and highlights the pitfalls of the ERTRE system. Like its contemporaries, Spud Murphy’s has to continue to pay full contributions for staff even when those staff aren’t working and are on ERTE and if the paperwork isn’t renewed then the business could be liable for contributions even when it has been forced to close.
Eoin from the Stay Sod also voiced his indignation at the ‘many’ shortfalls of the ETRE system and said he has ‘never witnessed such an inefficient system when attempting to get funds to workers’. He highlights three key defects, namely discrimination – in that only workers with contracts are supported, payments not being made on time and over payments.
The owners all call for more help and more support from authorities to avoid closures, in the form of grants for financial aid. The area is particularly reliant on tourists and second-home owners – none of who can travel here for the foreseeable future. This means even when they are open profits have been decimated. Of course, the other concern is that the tourists won’t want to return at all if the local community is full of shuttered, empty premises forced out of business.
Brendan from the Emerald Isle pointed out that it is estimated that almost 50 percent of local businesses will close permanently due to the effects of the pandemic; which will affect people’s livelihood and have a detrimental knock-on effect on the local economy and tax revenue. He also called for an urgent and ‘direct cash injection’. He also pointed out that the Spanish government is lacking in comparison to other European Counties.