Coronavirus: Foyle MLA 'raises concerns' over business support scheme

The LRSS scheme opened to businesses in Derry City and Strabane on 14 October, and was made available NI-wide on 19 October

The Department of Finance has been asked why more than half of business support applications from the Derry City and Strabane District Council area were rejected.

The department received 1,502 applications to the Localised Restrictions Support Scheme [LRSS] from the council area since 15 December.

Of these, 783 were rejected.

Across Northern Ireland about 25% of applications were rejected due to being ineligible, the department said.

A spokesman said on an NI-wide basis one of the most common reasons for an application to be rejected was because "duplicate applications have been made" and in many cases because "incorrect information has been supplied."

The scheme was open to businesses forced to close or severely limit operations.

SDLP MLA for Foyle Sinead McLaughlin wrote to Finance Minister Conor Murphy to ask why so many businesses in Derry City and Strabane had their applications rejected.

The SDLP's Sinead McLaughlin said the scheme is "difficult to interpret" for businesses

She said: "I've written to the finance minister raising concerns about whether LRSS is being administered fairly.

"I have sought assurance that appeals systems will be speedy and take into account a recognition that rules related to the restrictions can be difficult for businesses to interpret".

Mr Murphy revealed the figures in an answer to an assembly question from Mrs McLaughlin on Wednesday.

He said as of 15 December, 648 businesses in Derry City and Strabane District had received payments, 783 applications were rejected and 71 applications were still to be processed by the department.

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A spokesperson for the Department for Finance said more than £4m had been paid out to businesses across the Derry City and Strabane District Council area as part of £53.72m given to businesses across Northern Ireland.

The LRSS scheme opened to businesses in Derry City and Strabane on 14 October, and was made available NI-wide on 19 October.

The spokesperson added that the executive had other schemes in place for businesses which were not able to apply to LRSS.

It sees small businesses receive £1,600 every fortnight they are in lockdown, medium businesses £2,400 and large firms £3,200.

The thresholds are:

• Small businesses with a Net Annual Value (NAV) up to £15,000

• Medium businesses with a NAV of £15,001 to £51,000

• Large businesses with NAV of £51,001 or more