Michael Healy-Rae
Question:57. Deputy Michael Healy-Rae asked the Minister for Finance his views on whether finance packages are needed for businesses (details supplied); and if he will make a statement on the matter. [7346/20]
View answerWednesday, 27 May 2020
Questions (57)
Written answers
The Deputy suggests extending the Temporary Wage Subsidy Scheme (TWSS) to a particular business sector.
The TWSS is provided for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020 (The Act). The underlying legislation and the scheme itself were developed having regard to the Government objective of providing assistance to employers and employees, where businesses have been seriously affected by the Covid 19 pandemic and the restrictions which were introduced as a result. The scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The sector to which the Deputy refers is no different in this regard.
The Government’s priority in so far as the TWSS is concerned was and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The objective of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.
A key eligibility criterion for the scheme requires that where a business is experiencing a significant negative economic disruption due to the Covid-19 pandemic, the employer must make a declaration which states that, based on reasonable projections, as a result of disruption to the business caused (or to be caused) by the Covid-19 pandemic, there will be a decline of at least 25% in the future turnover of, or customer orders for, the business for the duration of the pandemic; and that as a result the employer cannot pay normal wages and outgoings fully, but nonetheless wants to retain its employees on the payroll.
An employer that has been hit by a significant decline in business but has strong cash reserves, which are not required to fund debt, may still qualify for the scheme, but the Government would expect such an employer to continue to pay some element of employees’ wages. Thus, where a business has been forced to close due to public health requirements resulting in future turnover declining by at least 25%, it is expected that such an employer would be eligible for the TWSS.
The Deputy may also wish to note that, outside of the TWSS, there is a wide range of financial supports and guidance available to help businesses impacted by the COVID-19 crisis. Details are available at the following link:
https://www.gov.ie/en/publication/c644c0-supports-for-businesses-impacted-by-covid-19/