The restructuring support we wrote about in last week's newsletter remains diffuse. The details are not clear, which is why it is difficult to have an exact opinion of what it means.

Spontaneously, it feels like the support is temporarily too short to allow the bridging (resetting) that is intended. What exactly can be included in the fixed costs that can be reimbursed is nothing specified, but it has been discussed among other things. rent, leasing etc. It is important that our customers' leasing costs for textiles will be included.

What is clear, however, is that the laundry industry is at a disadvantage right now. Although the government has managed to compile a list of over 100 SNI codes in sectors that can receive rental support, our companies are lacking.

Economically, conversion support + rental support probably means that companies in many industries can agree on halved rent with their landlord for March and April, and in addition receive restructuring support of up to 75 percent of the remaining rental cost (and other fixed costs). This will reduce the cost of renting down to 12,5 percent. For laundries, the cost of renting is reduced to a maximum of only 25 per cent.

Fair?

Government - Take initiative now

Government representatives constantly return to the following justification:

"This initiative has been designed primarily for activities that are close to the consumer and which can thus be assumed to have been hit particularly hard by the effects of the coronavirus."

For those who are suppliers to hotels and restaurants, turnover has in many cases decreased by 80-90% from one day to another. The lack of our SNI codes must be a big mistake that can happen in quick decisions. Then it is good that the Swedish Minister of Industry has understood that such things can happen and needs to be corrected, which he says below. We look forward to the readiness to be put into action.

"We are in the deepest, perhaps widest crisis we have seen in our country in peacetime."

We work intensively to support our companies and ensure that they receive support as quickly as possible. Then you must also have the humility that - if it turns out that it is not fully as good as we want it - then we also have the readiness to make changes ", says Minister of Trade and Industry Ibrahim Baylan (S) to Sveriges Radio.

Sales support

For March and April, the government has proposed a restructuring aid. This means that companies that lose 30 percent or more can receive direct financial support based on how much revenue loss they have had compared to the same months in 2019. At most, companies should be able to receive support for 75 percent of their fixed costs, excluding wage costs.

rental assistance

The support means that landlords can receive compensation from the state if they lower the rent for companies in certain particularly vulnerable sectors. When selecting industries, they were provided with hotels, restaurants and all sorts of shops and businesses. The government's list of industries includes over 100 so-called SNI codes. Unfortunately, the laundry industry was forgotten.

This means that on a street, a laundromat may be the only activity that is not covered by the rental subsidy, while the neighbors who, for example, sell cars, engage in artistic activities or offer crystal therapy are entitled to it. We can see no other explanation for this than that it was more important to get something quickly than to get it right.

Directly when the rental support was up for discussion, several companies in the laundry industry contacted their various landlords and most were directly positive to contribute their share of this, ie 25%. As one entrepreneur writes:

"Everything felt very good until the landlord realized that our industry code (SNI code) 96.011, was not included in the industries listed on several pages that would be eligible."

Just short term

In May and beyond, none of these subsidies, neither sales or rental support, are available for laundry and textile service companies. The work to "switch" the operations to the new situation would thus already have to be completed. This is far from the reality we see in our industry. The community is largely on pause and the customers stay home to help prevent the spread of infection.

For individual employees and entrepreneurs, this can create a personal financial disaster. From a societal perspective, this is also particularly problematic as the laundry and textile service industry represents many entry-level jobs in the labor market.

The Swedish Textile Service Association wishes

  1. That the laundry industry is added to the list of industries covered by the rental subsidy. We think it is directly wrong that our SNI codes 96.011 and 96.012 are not included in the rental support.
  2. That the restructuring aid be extended until at least August.
  3. Create future faith. Introduce routine deductions for laundry services that help consumers.
  4. Create future faith. Provide workers with free and clean work clothes, to ensure hygiene, washed in quality and environmentally certified facilities to protect the environment and climate.

 

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25% RUT deduction on laundry