Letter from the Swedish Textile Service Association to Minister of Finance Magdalena Andersson and Minister of Trade and Industry Ibrahim Baylan, Ministries of Finance and Enterprise, Finance and Enterprise Committees
The Government's proposal to reintroduce rental rebates for certain particularly vulnerable industries should also include laundry and textile service companies within SNI code 96.011 Industrial and departmental laundry.
On 15 January this year, the government announced that rent subsidies for certain defined industries that had been particularly hard hit by the corona pandemic would be reintroduced.
The rent subsidy was an early intervention during the pandemic that was introduced and applied to the period April-June 2020. The subsidy was designed so that property landlords who gave tenants in special industries a discount on the rent, could receive some compensation for this from the National Board of Housing, Building and Planning.
When the aid was introduced, laundries were not covered by the aid at all. This led to the inexplicable situation that a laundromat could be the only business on a street that could not get a rental discount. After the Swedish Textile Service Association worked hard to draw the government's attention to this, it was finally decided on 3 July that consumer laundries would also be included. Even after the decision on 3 July, industrial laundries were excluded from the aid.
The adjustment support was introduced later than the rental support and is a broader support that allows companies to subsequently apply for compensation for their fixed costs, including rental costs. This means that these supports have complemented each other. For companies, it is best to be covered by both the rent subsidy and the conversion subsidy. The rent subsidy is advantageous because the discount on the rent means that companies do not have to spend money that they then have to wait to get back. The final amount that companies need to spend on rental costs will also be lower.
Now that the rent subsidy is about to be reintroduced, it is time to remind once again that industrial laundries should be covered by the subsidy.
The Government's attempt to provide support to those industries that are particularly hard hit by restrictions and demands that we keep our distance is commendable. Unfortunately, it does not seem to have been understood how closely different industries work together.
The laundry and textile service industry works according to a circular business model where each part of the chain is equally important. This means that we are dependent on a constant flow of laundry moving between hotels, restaurants and other customers and our facilities.
According to the division in SNI, industrial laundry is all laundry aimed at companies. This includes, among other things, washing of textiles in the hotel and restaurant industry as well as washing of work and protective clothing.
When hotels and restaurants are empty, it affects many subcontractors who take care of laundry and textile services as hard as it affects the hotels themselves. The flow of laundry stops and with a circular business model there are no opportunities to build up warehouses that you can try to sell in the future.
The design of the rent subsidy is based on so-called SNI codes. Hotels, restaurants and laundry and textile service companies have different SNI codes, but in the end we are all important parts of a chain to deliver experiences to the end consumer.
The laundry and textile service industry has a turnover of around 5,7 billion normally, and has about 5 employees in 000 companies, of which over 250% have fewer than ten employees. Many employees are young, sometimes without completed education and a large proportion are foreign-born. If these jobs disappear, it means a severe blow to an establishment in the labor market.
We believe that
- Laundry and textile service companies with SNI code 96.011 must also be included in the possibility of reducing rental costs, just like companies in other industries.
For the Swedish Textile Service Association