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Covid-19 Pandemic Supports

Dáil Éireann Debate, Thursday - 16 July 2020

Thursday, 16 July 2020

Questions (35)

Brendan Smith

Question:

35. Deputy Brendan Smith asked the Minister for Finance if measures will be implemented through an easing of the taxation burden on the tourism and hospitality sector in view of its importance as a provider of employment taking in to account the particular difficulties arising from the Covid-19 pandemic; and if he will make a statement on the matter. [16302/20]

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Written answers

The Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods, including in the tourism and hospitality sectors. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes our people can get back to work as quickly and seamlessly as possible.

A key focus of the Programme for Government “Our Shared Future” is to get people back to work as quickly as possible, in order to restore the public finances and enable the provision of better and more accessible public services on a sustainable and long-term basis. A stable and sustainable regulatory and tax environment and sound management of the public finances will allow investment in the infrastructure and skills required to enhance competitiveness.

Looking ahead, fiscal policy is based on a three-phased response:

- During the initial phase, phase one, swift action was taken to introduce emergency measures aimed at protecting individuals and businesses during the initial period of uncertainty.

- The focus of the next phase of the response is on ensuring that the economy returns to growth. The main concern in this recovery phase will be to get as many people back to work as quickly as possible and the State will have a role to play in that regard.

- Over the longer time, fiscal policy will be required to pursue a credible path towards budgetary sustainability; to provide confidence to businesses, the public and to demonstrate that Ireland is back on the right path again.

As a matter of policy, taxation measures are reviewed on a regular basis as part of the annual Budget and Finance Bill process. I should add that my Department has started to receive pre-Budget submissions from various stakeholders and the contents of these submissions will be considered in the context of the forthcoming Budget.

The immediate focus of Government is on a fiscal stimulus plan to introduce a package of measures that will build on existing measures in order to help kick-start the economy, safeguard jobs and protect people’s livelihoods. Therefore, the short-term focus is on supporting households and firms, to limit the medium term impacts on the economy and to lay the ground for recovery.

Work is currently ongoing around how best to support employers into the more medium term. The position of various sectors, including tourism and hospitality, will be taken into account in this process.

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