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Politics - 06.05.2020 klo 18.21

Government proposes support to ease restaurant industry crisis

PM Marin’s Government issued a statement on a model of support for restaurants on 6 May. All restaurants were shut down by a Government decree in the beginning of April. PAM hopes that this support model will be enough to maintain jobs and companies in the restaurant industry.

The Government has announced that it intends to draft a proposal to Parliament on subsidies for restaurants. The now announced support for restaurants is split into two parts with one allocated to cover fixed costs and the other to rehire staff.

Earlier this week, restaurants were told that they could begin to reopen in a controlled manner from the beginning of June. The travel and restaurant sector employs approximately 90,000 employees, of which up to two thirds are temporarily laid off at the moment, according to PAM’s latest economic barometer.

PAM has repeatedly called for rapid action to support the restaurant industry to avoid a wave of bankruptcies. PAM President Annika Rönni-Sällinen has praise for the long-awaited Government proposal on restaurant subsidies. 

“The Government has wanted to do its work carefully, and we are grateful to finally start implementing this support, which is vital for the industry. We hope that the support will be put to practice quickly and without problems,” says Rönni-Sällinen.

“Hopefully this delay of several weeks has not already led to many bankruptcies in the field, and that the support will reach everyone who needs it despite the wait. However, the Government must also prepare for the possibility that the current model of support will be insufficient, if the number of applicants and the related costs increase unexpectedly. This means that the restaurant industry will need more help,” concludes Rönni-Sällinen.