A number of support mechanisms are available to event organizers, including in the cultural sector / Article / LSM.lv

A number of support mechanisms are available to which the Minister of Culture Nauris Puntulis (National Association) told the media event to reduce the negative impact of the Covid-19 crisis at the media event of cultural events, including technical support companies.

IN SHORT:

• The technical support companies of the Latvian event industry are organizing a picket to draw attention to the critical situation in the industry
• Ministry of Culture: Organizers are provided with the same support mechanisms at an early stage of the crisis as other sectors of the Covid-19 crisis.
• Ministry of Culture: Currently, support for technical support companies is available in the SCCF and LIAA programs.
• Industry representative: Currently available SCCF and LIAA programs do not provide sufficient support to the industry, as they are available to a narrow circle of companies.

As Lita Kokale, Head of the Public Relations Department of the Ministry of Culture, informed in response to the action “Culture MUST work”, At the August 11 media event, Nauris Puntulis, Member of the Council of the State Cultural Capital Fund (SCCF) Valts Ernštreits and Head of the Council of Event Organizers and Event Producers Ģirts Majors explained what support mechanisms are available in the industry.

Kokale explained that the organizers of the event, incl. technical support companies are provided with the same support mechanisms as other sectors of the Covid-19 crisis in the early stages of the crisis: working capital loans to economic operators, credit holiday guarantees for companies that have experienced objective difficulties in making loan payments to commercial banks due to the spread of Covid-19; extensions or division into payment periods for a period of up to 3 years, as well as the possibility not to make advance payments of personal income tax in 2020 and state support to cover the salaries of idle employees. The technical support companies have used the mentioned support, Kokale emphasized.

The Ministry also pointed out that currently the organizers of events, including technical support companies, can apply for support from the SCCF’s 2.4 million euro target program “Sustainability of Cultural Institutions Affected by Covid-19”. Its aim is to support businesses, associations and foundations, incl. companies in sectors related to the organization of events, the activities of which are related to the provision of permanent public cultural events and which have been restricted due to the restrictions established in the Covid-19 country. In order to ensure the continuity of their operations, within the framework of the SCCF target program, merchants, associations and foundations are partially reimbursed for current expenses incurred during the existence of restrictions.

Also, technical support companies have access to the Latvian Investment and Development Agency’s (LIAA) support program “Covid-19 for overcoming the consequences of the crisis and promoting employment for tourism companies”. It envisages a one-time grant or gift to compensate the salary, which the entrepreneur will receive in the amount of 30% of the mandatory state social insurance contributions paid in 2019, but not more than 0.8 million euros. This aid scheme is mainly intended for economic operators in the tourism and related sectors, but technical providers of activities are also eligible (NACE code 7739 – Renting and leasing of other machinery, equipment and tangible goods nec; NACE code 7490 – Other professional activities nec) , scientific and technical services, and NACE code 8230 – Organization of conventions and trade shows.

This LIAA support program is already open. Kokale also noted that in the coming weeks the Ministry of Economics has promised to evaluate the volume of applications and the amount of the request in order to weigh whether it is possible to make changes in the program in conditions of limited funding.

However, the currently available SCCF and LIAA programs do not provide sufficient support to the industry on 11 August In the LTV program “Morning Panorama” indicated Aldis Janēvics, Chairman of the Board of the company “NA”. Janēvics explained that participation in the SCCF competition is limited by the division of statistical classification of economic activities (NACE) codes, while the available LIAA programs are aimed directly at tourism and export support, which means that they are available to a narrow circle of companies in the sector.

CONTEXT:

In order to inform the public about the situation of technical suppliers in the event industry and call on the responsible government institutions to take action to rescue the industry, on August 11 Latvian event industry technical companies hold a picket by pushing their technical equipment boxes off At 15:00, the participants of the picket with 100 transport boxes will march to the alley on Brīvības Boulevard opposite the Cabinet of Ministers of the Republic of Latvia.

To overcome the crisis caused by Covid-19 and economic recovery, investment in culture was decided to allocate 32 million euros: € 10.6 million to mitigate the effects of Covid-19 public cultural institutions and support for creative people; EUR 10.4 million for modernization measures in the cultural sector – public procurement of new cultural assets, as well as EUR 11 million for cultural infrastructure.

In Latvia on June 10 ended Emergency to declare the new coronavir announced on 12 March. The virus is still circulating and there is no medicine or vaccine for it. Certain restrictions still apply to reduce the spread of Covid-19.

No augusta 3,000 people can gather outside. Restrictions indoors depend on the size of the room.

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