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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 22 July 2020

Wednesday, 22 July 2020

Questions (94, 100, 101)

Alan Dillon

Question:

94. Deputy Alan Dillon asked the Minister for Finance if he will respond to a call by performers and crew in the live entertainment industry to retain the temporary wage subsidy scheme and to provide other supports and grants for those in that sector who are uncertain as to when they will return to work in view of social distancing rules; and if he will make a statement on the matter. [17545/20]

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Danny Healy-Rae

Question:

100. Deputy Danny Healy-Rae asked the Minister for Finance his plans to support jobs in the tourism-related sector (details supplied); and if he will make a statement on the matter. [17608/20]

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Danny Healy-Rae

Question:

101. Deputy Danny Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding the wage subsidy scheme; and if he will make a statement on the matter. [17609/20]

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Written answers

I propose to take Questions Nos. 94, 100 and 101 together.

The Temporary Wage Subsidy Scheme (TWSS) was introduced in March and was specifically designed to support firm viability and preserve the relationship between the employer and employee insofar as is possible through the lockdown period, in circumstances where the employer’s business had been negatively impacted by COVID-19.

The TWSS is available to employees, whether full-time or part-time, who were on their employer’s payroll at 29 February 2020. This requirement is set down in Section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020.

The scheme was developed in a short period of time, having regard to the overarching urgent Government objective of getting assistance to employers and employees quickly.

The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020. There is no distinction made regarding the subsidy amount based on whether the business has closed due to the restrictions brought in by the Government or has continued to trade with employees continuing to work part-time or full time with similar hours as before the Covid-19 pandemic.

However, the employer is expected to make best efforts to maintain the employee’s net income reflected in the average net weekly payment for January and February 2020, for the duration of the TWSS. At the same time, there is no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but for Revenue operational systems reasons the employer needs to enter at least €0.01 in gross pay when running its payroll.

The question of an individual’s entitlements in an employment context, and the question of what wages an employer may or may not be in a position to pay such an employee in light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS. The scheme has no role in relation to the employer/employee relationship in so far as the terms, conditions and entitlements of the employment are concerned.

As the public health restrictions are eased, the challenge for the economy and enterprises is evolving. Having regard to the novel circumstances surrounding the re-opening of the economy as well as the need to avoid the risk of forcing otherwise viable firms to close, in early June it was announced that the TWSS will remain until the end of August. Work has been ongoing and is at an advanced stage around how best to support employers into the more medium term. The position of various sectors, including the activities and workers mentioned by the Deputies, will be taken into account in this process. As per the commitment in the Programme for Government, it is planned that the July Jobs Initiative will set out a pathway for the future of the TWSS.

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