Almost 800 applications from businesses in Derry council area rejected for Covid support by Department of Finance

Almost 800 applications from Derry and Strabane businesses for Covid-related financial support from Stormont have been rejected.

Finance Minister Conor Murphy said a total of 1,502 applications had been received from the Derry City and Strabane District Council as part of the Localised Restrictions Support Scheme (LRSS).

The scheme was set up to support businesses affected by the lockdown restrictions in the local council area.

Mr Murphy said the scheme opened to businesses in Derry and Strabane on October 14 and to busineses in other areas affected by restrictions on October 19.

He said the first payments under the scheme were made on October 21.

The Finance Minister said that as of yesterday, December 15, there had been 1,502 applications received from the Derry and Strabane District Council area.

Of these applications, he said, 648 businesses had received payments but 783 applications had been rejected.

Mr Murphy said a total of £3.87m had been paid out to local businesses under the scheme.

Mr Murphy said there were still 71 applications to be processed from the local council area.

The Finance Minister said that since the scheme was expanded to include non-essential retail businesses, Land and Property Service had received a further 147 applications from businesses in the Derry City and Strabane District Council area, and 84 of these have been paid out to a value of £150K.

Mr Murphy revealed the figures around the scheme in an answer to an Assembly question from Foyle SDLP MLA Sinead McLaughlin.

Ms McLaughlin said she is very concerned that most applications in the Derry and Strabane area for payments had been rejected.

“I have asked the minister for additional information on the reasons for rejection,” she said.

“One local photographer was told he was not entitled to financial support as he was not required to cease trading during the period of restrictions - yet it is difficult to understand how a photographer can undertake his work without being in close contact with clients. Nor would society want him to trade in a period of restrictions.

“A large number of businesses are on the edge of collapse and financial help from the Localised Restrictions Support Scheme and other rescue schemes can be the difference between struggling on and collapsing.

“If officials are making hardline and unreasonable judgements on which businesses qualify for support then this is simply unacceptable. 

“I am calling on the economy minister to extend the deadline for applications under the Covid Restrictions Business Support Scheme for those businesses that have had applications under the Localised Restrictions Support Scheme rejected by the Department of Finance.

“I would also like the Department of Finance to operate a speedy appeals process for rejected applicants.”