Written Answers Nos. 242-262
242. Deputy Richard Bruton asked the Minister for Transport the status of legislation in preparation to provide a legal framework for the use of e-scooters; the work that has been done to date on that legislation; when it is scheduled to be presented; and his views on whether an opportunity for safe transport in a Covid-19 world is being lost through this gap in legislation. [22269/20]
View answerElectric scooters are a type of powered personal transporter (PPT). PPTs are classed as mechanically propelled vehicles, the use of which requires a valid licence, tax and appropriate insurance in accordance with Section 3 of the Road Traffic Act 1961. As PPTs do not fall under any existing vehicle category, it is not currently possible to tax and insure them and there is no separate licence category for them. Therefore they may not be used on public roads and in public places. However, their use is permitted on private land with the permission of the landowner.
Changes to the legal status of these vehicles are not as simple as declaring them no longer mechanically propelled vehicles. Any changes to this require primary legislation which, as the Deputy will appreciate, may take some time.
I intend to legislate for eScooters in accordance with the Programme for Government. This will involve identifying and developing appropriate amendments to primary legislation across a range of complex areas. The work must be carried out in such a way that it does not undermine the overall framework of Road Traffic Law or Road Safety in general. The Government's current legislative priorities are the necessary measures to manage the Covid 19 crisis and to address its social and economic consequences.
Consequently, no work has commenced on the preparation of legislation yet and it is not currently possible to provide a timeframe. The situation will be kept under review.
243. Deputy Michael Healy-Rae asked the Minister for Transport if he will address a matter (details supplied) regarding the coach sector; and if he will make a statement on the matter. [22271/20]
View answerUp to 2013, vehicles were declared off the road retrospectively.
The Non-Use of Motor Vehicles Act came into effect on 1 July 2013. The primary purpose of the Act was to replace the system whereby a vehicle was declared off the road retrospectively with a system under which the vehicle must be declared off the road in advance.
Under these provisions introduced in 2013, a declaration must be made in the last month of an existing motor tax disc or renewed in the last month of a previously made declaration of non-use. The declaration can be made for any number of calendar months between 3 and 12 months i.e. it cannot be made for a period of 1 or 2 months. If a vehicle is subsequently required to be put back on the road, the declaration can be broken at any time simply by taxing the vehicle.
Where a declaration is not made in advance, arrears of motor tax must be paid in full and motor tax paid for a minimum of 3 months before a declaration of non-use can then be made in the final month of the tax disc.
There are no plans to re-introduce retrospective declarations of non-use, the cost of which, at the time of introduction of the legislation, was estimated at some €110m annually.
As the Deputy is aware, the Government has channelled significant Exchequer resources towards the introduction of an extensive range of supports for Covid-impacted businesses, including rates waivers, re-start grants, lending facilities, equity injection, business advisory supports, and, in recent weeks, supports for businesses impacted by local lockdowns. In terms of social protections, resources have been allocated to the continuation of the Pandemic Unemployment Payment and Wage Subsidy Schemes into next year.
244. Deputy Johnny Mythen asked the Minister for Transport his plans to reduce driver test waiting times in County Wexford; and if he will make a statement on the matter. [22447/20]
View answer246. Deputy Johnny Mythen asked the Minister for Transport his plans to expand the driver test services in County Wexford to address the backlog of persons awaiting tests. [22449/20]
View answerI propose to take Questions Nos. 244 and 246 together.
The driver testing service restarted on a gradual basis during Phase 3 of the Government’s road map for easing of Covid19 restrictions.
On Monday 29 June, driving tests resumed on a gradual basis for trucks, buses and motorcycles (except for trucks in C1 and buses in D1 categories). Driving tests for cars, minibuses and vans resumed from the 16 July.
Due to the social distancing requirements, normal daily capacity is considerably reduced. This means that customers will experience longer waiting times than was the case before the service was suspended. The public’s patience and understanding in this regard is requested.
Those who had appointments cancelled due to Covid 19 are being prioritised in the first instance. Initially, only those who are frontline healthcare workers will be deemed eligible for an urgent test slot. This approach for prioritising customers will be kept under review as the RSA moves through the service resumption.
My Department is remaining in close contact with the RSA, which is exploring how further to manage backlogs while prioritizing public health, and this process is being informed by lessons learned as centres operate under the new health restrictions.
Details of specific centres are operational matters for the RSA.
245. Deputy Johnny Mythen asked the Minister for Transport his plans to reduce driver theory test waiting times in County Wexford; and if he will make a statement on the matter. [22448/20]
View answerDriver Theory Tests resumed on 8 June, on a gradual basis.
As you can appreciate Covid 19 has had a profound effect on the delivery of services. The Driver Theory Test service has seen its capacity reduced by 50% to comply with occupational and public health requirements. This has an inevitable impact on many people, including truck drivers.
The RSA is currently engaging with the service provider to maximise capacity within existing constraints. They will be opening on additional days including Saturdays, (at some centres) and extended hours will also be provided to allow additional capacity for appointments.
I understand additional appointments are added to frequently and people wishing to take the theory test should contact check the service through https://theorytest.ie/.
Matters relating to specific centres are operational matters for the RSA.
247. Deputy Denis Naughten asked the Minister for Transport the number of vacant desk spaces available in accommodation allocated to his Department in Civil Service accommodation outside Dublin city; and if he will make a statement on the matter. [22490/20]
View answerMy Department currently has a headcount of 617 staff, 177 staff are based in locations outside of Dublin City Centre and each staff member is allocated a desk to undertake their duties.
|
Location |
Headcount |
|
Shannon |
69 |
|
Loughrea |
21 |
|
Cork |
11 |
|
IRCG Centre Valentia* |
15 |
|
IRCG Centre Malin* |
14 |
|
Ballyshannon |
6 |
|
Killarney** |
41 |
*IRCG centres operate a 24/7 emergency response service
**The Tourism & Sport function, primarily based in Killarney, will formally transfer to the Department of Media, Arts, Tourism, Sport, Culture & An Gaeltacht in the near future.
In compliance with current public health advice and Government guidelines on the management of the COVID-19 pandemic, the majority of staff in my Department have been working remotely since March 2020. The current Government guidelines are that “unless it is absolutely essential for an employee to attend in person, they should work from home”. We will continue to follow the public health advice as it continues to evolve and the return to the office environment will be managed in accordance with the requirements under the Return to Work Safely Protocol.
I would like to take this opportunity to acknowledge the efforts of all my staff in their response to this crisis, their continued resilience in challenging circumstances in delivering vital services and supports to the transport, tourism and sports sectors.
248. Deputy Brian Stanley asked the Minister for Transport the timeframe persons who have applied for a driver test can expect to wait for an appointment. [22494/20]
View answerAs the information requested in the Deputy's question is held by the Road Safety Authority, I have forwarded the question to the Authority for direct response. Please contact my office if no reply is received within 10 working days.
249. Deputy Patrick Costello asked the Minister for Transport the status and projected construction date of a new DART station at Inchicore, Dublin 8 as laid out in the DART expansion programme. [22503/20]
View answerI was delighted to be able to officially launch the consultation period on DART+ West recently and welcome the simultaneous publication of material relating to the DART+ programme generally as well.
DART+ is a transformative programme of investment which will provide a sustainable, electrified, reliable, frequent rail service significantly increasing capacity on all the rail corridors serving the Greater Dublin Area, through investment in infrastructure and a fleet of new trains. The National Transport Authority (NTA) has statutory responsibility for the planning and development of the DART+ Programme which also includes new DART stations and the electrification of lines.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a more detailed direct reply. Please contact my private office if you do not receive a reply within 10 days.
250. Deputy Emer Higgins asked the Minister for Transport if organised sports training within indoor facilities can do so in multiple pods of six; if there is a limit of six on the total number of attendees; and if he will make a statement on the matter. [22516/20]
View answerAs the statutory body with responsibility for the development of sport, Sport Ireland has issued guidance to the sport sector on the practical implications for sport of the most recent restrictions announced on 18 August.
The following points contained in the guidance may be helpful in answering your query:
- Organised Sports training within indoor facilities can do so in multiple pods of 6 once sufficient space is available and strict public health protocols are in place.
- Total Indoor Gym/Facility/Pool Use can remain at the previous maximum levels of 50 once there is sufficient space available. In addition, facilities should be extra vigilant of potential congestion points such as entrance/exit points, changing rooms and reception areas ensuring that social distancing and other public health measures are maintained at all times.
The full guidance is available on Sport Ireland's website www.sportireland.ie
252. Deputy Catherine Murphy asked the Minister for Transport if he will provide a schedule of advisers, special advisers and seconded civil servants working in his Department appointed and or recruited and or in an acting capacity; the roles and responsibilities attributed to each; and the salary scale for each role in tabular form. [22538/20]
View answerOn the commencement of every Dáil, the Department of Public Expenditure and Reform issues guidelines setting out the arrangements for the staffing of Ministerial Offices. The appointment of Special Advisers is subject to section 11 of the Public Service Management Act 1997.
The Guidelines for the 33rd Dáil, which incorporate the principles of section 11 of the PMSA Act, have recently been approved by Government.
The appointment of individual Special Advisers is a matter for each Government Minister subject to the terms set out in the aforementioned guidelines, although the appointments are also subject to formal Government approval. At this stage, no Special Advisers have been formally appointed to my Department by the Government.
However, the Deputy may wish to note that I have assigned three Special Advisers and Minister Naughton has assigned two Special Advisers, each of which will be formally appointed by the Government now that the Guidelines have been approved.
As part of the formal appointment process the Minister for Public Expenditure and Reform must be notified of the rate of salary to be paid in all cases for Special Advisers; these rates will then be published on the website of the Department of Public Expenditure and Reform.
253. Deputy Mark Ward asked the Minister for Transport the number of times Dublin Bus routes were curtailed due to anti-social behaviour by individual bus routes and by month in each of the past two years in tabular form. [22681/20]
View answerAs the Minister for Transport, Tourism and Sport, I have responsibility for policy and overall funding in relation to public transport.
The safety and security of public transport passengers and staff, including arrangements to deal with anti-social behaviour, are important matters that, first and foremost, must be managed by every public transport company, in conjunction with An Garda Síochána, where appropriate.
I have therefore forwarded the Deputy's question to Dublin Bus for direct reply. Please advise my private office if you do not receive a response within ten working days.
254. Deputy Alan Kelly asked the Minister for Transport the number of special advisers that will be hired by his Department. [22777/20]
View answerOn the commencement of every Dáil, the Department of Public Expenditure and Reform issues guidelines setting out the arrangements for the staffing of Ministerial Offices. The appointment of Special Advisers is subject to section 11 of the Public Service Management Act 1997.
The Guidelines for the 33rd Dáil, which incorporate the principles of section 11 of the PMSA Act, have recently been approved by Government.
The appointment of individual Special Advisers is a matter for each Government Minister subject to the terms set out in the aforementioned guidelines, although the appointments are also subject to formal Government approval. At this stage, no Special Advisers have been formally appointed to my Department by the Government.
However, the Deputy may wish to note that I have assigned three Special Advisers and Minister Naughton has assigned two Special Advisers, each of which will be formally appointed by the Government now that the Guidelines have been approved.
255. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if additional taxation measures on rental income from short-term lettings will be introduced. [21095/20]
View answerI am advised by Revenue that income arising from the provision of short term accommodation through online websites is subject to tax and the amount of taxable income is computed and charged to tax in the normal manner. Where the accommodation is provided as part of a trade carried on by the taxpayer, the income is taxable under Case I of Schedule D of the Taxes Consolidation Act 1997. However, where the provision of guest accommodation is occasional in nature, the income arising should be treated as miscellaneous income (taxable under Case IV of Schedule D). Under self-assessment rules, a person is obliged to submit an annual tax return showing his/her taxable income from all sources (including rental income) and pay the tax due on that taxable income.
PAYE taxpayers who have also received profit income from the provision of rooms through online accommodation sites also come under the self-assessment system and, therefore, have an obligation to make an annual tax return showing all sources of income and to pay the tax due on that income. However, in certain circumstances, PAYE taxpayers (excluding certain company directors) whose combined taxable profit from their non-PAYE income is less than €5,000 (or where the gross income is less than €30,000) per annum may elect to pay the tax due on such taxable profit through the PAYE system by reducing their personal tax credits. Where the tax due on all such income has been collected through the PAYE system for a tax year there is no obligation to complete a tax return for that tax year unless specifically requested to do so by Revenue.
Where taxpayers have already filed their tax return but have not declared profit income from sources referred to by the Deputy, or similar sources, they may self-correct their tax return without incurring penalties, provided it is completed by 31 October 2020 and they have not been notified by Revenue of a compliance intervention. It should be noted that interest on any outstanding tax amount will still be payable and will continue to accumulate until the outstanding amount is paid. For taxpayers who have not yet filed a tax return or have not declared relevant income, they should write to their local Revenue office, setting out details of any income received and related expenses for all relevant years.
Regarding rent-a-room relief, this is provided for in Section 216A of the TCA 1997. Under the legislation, sums arising to an individual in respect of the letting of a room or rooms as residential accommodation in his or her home and from meals or other services supplied in connection with the letting are exempt from income tax, USC and PRSI where these sums are below the annual limit for the tax year in question (€12,000 for 2015 and 2016 and €14,000 for 2017 and subsequent years) and certain other conditions are satisfied.
The purpose of the relief is to increase the supply of affordable rental residential accommodation by incentivising homeowners to rent out a room or rooms in their principal private residence to individuals. It applies where an individual is effectively using the room either on its own or in conjunction with other parts of the residence, as his or her home. The relief is not, and never was, intended to apply to income arising from the provision of guest accommodation to occasional visitors and Revenue has consistently clarified this point and I am aware that the clarification has also been subject to significant coverage.
Revenue has published comprehensive guidance across all taxes, including Income Tax and VAT, on the tax treatment of income from the provision of short-term accommodation, which the Deputy may find helpful. The information is available on Revenue’s website at https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-01-20.pdf .
Any proposals for changes to the current arrangements are matters that would have to be considered in the context of a forthcoming budget and/or Finance Bill.
256. Deputy Catherine Murphy asked the Minister for Finance the reason for the decision to exclude propriety owners and directors working to keep their business afloat from the new employment wage subsidy scheme in view of the fact that they were previously included in the temporary wage subsidy scheme; the reason for the change; and if he will make a statement on the matter. [21263/20]
View answer278. Deputy Marian Harkin asked the Minister for Finance the reason proprietary directors and certain connected persons cannot access the new employer wage subsidy scheme; and if he will make a statement on the matter. [21252/20]
View answer290. Deputy Duncan Smith asked the Minister for Finance if consideration has been given to allowing proprietary directors without employees access to the employment wage subsidy scheme; and if he will make a statement on the matter. [21823/20]
View answerI propose to take Questions Nos. 256, 278 and 290 together.
The Employment Wage Subsidy Scheme (EWSS) was legislated for in the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020. The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll.
Under the legislation as enacted, proprietary directors are not qualifying employees for the purposes of the scheme. The primary rationale behind the exclusion is that a proprietary director is a person who is the owner (or co-owner) of a company and so it is considered that such a position is much less likely to be a vulnerable employment when compared with regular workers, noting an objective of the EWSS is to maintain the relationship between employee and employer insofar as is possible.
However, as I announced at the end of July, this position has been revisited and the EWSS can be claimed by an eligible employer in respect of proprietary directors. Following the review of the matter undertaken by my Department and the Revenue Commissioners it has been agreed that the only additional qualifying criteria that will apply in the case of proprietary directors as qualifying employees is that the proprietary director has to have been paid wages which were reported to Revenue on the payroll of the eligible employer at any stage between 1 July 2019 and 30 June 2020. Further, it has also been agreed that where a person is a proprietary director of two or more eligible companies, a claim for EWSS can only be submitted in respect of a single company only.
The amending legislation necessary to give a statutory footing to the above will be included in the Finance Bill later this year.
In the meantime, the above will be implemented by Revenue as confirmed in both a press release that was issued on 31 Augustsee
https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-310820-proprietary-directors-ewss-1-September.aspx
and the updated Guidance
https://www.revenue.ie/en/corporate/communications/documents/ewss-guidelines.pdf
257. Deputy James Browne asked the Minister for Finance if his attention has been drawn to instances in which employers availing of the temporary wage subsidy scheme do not pass on the increase in the minimum wage to their employees; and if he will make a statement on the matter. [21269/20]
View answerThe Temporary Wages Subsidy Scheme (TWSS) was legislated for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed very quickly, having regard to the overarching, urgent Government objective of getting much needed financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.
The TWSS is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up. 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 part-time or work full time with similar hours as before the Covid-19 pandemic.
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. There is, however, 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 will need to enter at least €0.01 in Gross Pay when running its payroll.
I have been advised by Revenue that 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 the light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS. Essentially, 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.
The Deputy refers to the National Minimum Wage which increased to €10.10 per hour on 1 February 2020 as set out in the National Minimum Wage Order 2020. Disputes in relation to payment of the National Minimum Wage may be referred to Workplace Relations Commission.
Finally, I would add that details of subsidy payments made by pay date are available to view in each employee’s myAccount record on Revenue’s online system. This facility allows employees to see whether their employer is participating in the scheme and being refunded a wage subsidy on their behalf. Where the amount of subsidy paid is available from the relevant employer payroll submissions made to Revenue, that amount is also displayed.
258. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the estimated cost of extending the additional 5% increase of the help-to-buy scheme retrospectively to include all beneficiaries of the scheme that have drawn down the grant since March 2020; his views on such an extension to the stimulus; and if he will report on same. [21307/20]
View answerI am advised by Revenue that the cost of extending the additional 5% increase of the Help to Buy scheme (and €30,000 maximum cap), that was introduced in the July stimulus package on 23 July, to all claims approved between 1 March 2020 and 22 July 2020 is estimated to be in the region of €13m.
In relation to the proposition that the scheme should be extended to include all HTB applicants since March last, the position is that the Government decided, and the Oireachtas endorsed in passing the Financial Provisions (Covid-19) (No.2) Act 2020, that the threshold date for eligibility for the enhanced level of support was 23 July 2020. The approach adopted, whereby the date of the announcement was the same as the commencement date (for the enhanced level of support), mirrored that which applied when the HTB scheme was originally introduced on 19 July 2016. It would not be possible to seek to move the qualification date for the enhanced level of support as proposed by the Deputy.
259. Deputy Cathal Crowe asked the Minister for Finance if clarification will issue on the newly enhanced help-to-buy scheme for first-time buyers who have commenced the process and have received approval for HTB at the 5% rate and need to know their entitlements under the new rate; and the way in which the extra finance will be issued in cases in which a 5% deposit may already have been paid by the buyer. [21360/20]
View answerThe Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The Government recently announced a temporary enhancement to the existing HTB scheme for the remainder of 2020 as part of the July Stimulus plan. The legislation to give effect to this increase has been outlined in the Financial Provisions (Covid-19) (No.2) Act 2020 and was signed into law on 1 August 2020.
In summary, the legislation provides that where applicants
(I) enter into a contract for the purchase of a new house or apartment, or
(ii) make the first draw down of the mortgage in the case of a self-build property,
during the period from 23 July 2020 to 31 December 2020, they will be eligible for increased relief under the HTB scheme to the lesser of:
- €30,000 (increased from €20,000),
- 10 per cent (increased from 5 per cent) of either the purchase price of the new home or, in the case of self builds, the completion value of the property, or,
- the amount of Income Tax and DIRT paid in the four years prior to making the application.
All other conditions of the original HTB scheme remains the same.
As regards the Deputy’s question, if an applicant is purchasing a house (rather than self-building) and has entered into a contract to purchase his or her first home prior to 23 July 2020, he or she will not satisfy the conditions to avail of the temporary enhanced HTB relief. However, if an applicant is self-building a new home, and he or she draws down the first tranche of the mortgage between 23 July and 31 December 2020, then he or she may be able to avail of the temporary enhanced HTB relief.
I have been advised by Revenue in relation to the extra finance to issue, the process is as set out in legislation, thus in the case of purchasing a house, the extra 5% is paid to the qualifying contractor and the contractor shall treat the appropriate payment as a credit against the purchase price of the house. In the case of a self-build the extra 5% will be to the applicant’s qualifying loan bank account. In any event where an applicant has a HTB application approved with Revenue under the original HTB scheme but believes he or she satisfies the requirements of the enhanced HTB relief, he or she should contact Revenue via MyEnquiries outlining the specific details to have the claim reviewed.
Finally, Revenue has published Tax and Duty Manual 15-01-46 on its website, which contains detailed guidance on all matters relating to HTB, including the temporary enhanced HTB scheme.
260. Deputy Cathal Crowe asked the Minister for Finance if the level of tax rebate for dental treatment will be re-examined with a view to being increased to make it easier on parents and adult patients to meet the costs of the necessary service [21431/20]
View answerSection 469 of the Taxes Consolidation Act 1997 provides for relief at the standard rate of income tax (currently 20%) on certain health expenses incurred in the provision of health care. The provision of tax relief at the standard rate ensures that all taxpayers are treated equally regardless of whether they pay tax at the standard or higher rate.
For the purposes of the section “Health Care” is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability” but excluding routine ophthalmic treatment, routine dental treatment and unnecessary cosmetic surgery.
Therefore, in current legislation, an individual can claim tax relief in respect of non-routine dental care provided by a registered practitioner. While non-routine dental treatment is not defined in legislation, a non-exhaustive list of relevant procedures is available on the Revenue website at: http://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/dental-expenses.aspx
These include major interventions such as periodontal treatment for gum disease and orthodontic treatment.
Routine dental treatment is defined as “the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures”.
The exclusion of expenses incurred in respect of routine dental treatment has been in place since the relief’s inception in 1967. The rationale is that health expenses relief is broadly intended to provide assistance through the tax system in respect of significant or exceptional health expenses, but excluding those of a routine nature or minor nature.
There are no plans to change these arrangements at this time. However, the Deputy will be aware that in recent years there has been an increase in the level of dental benefits available through the social insurance system administered by the Department of Employment Affairs & Social Protection.
261. Deputy Joan Collins asked the Minister for Finance if he will meet with an association (details supplied) to resolve an issue about the temporary wage subsidy scheme. [21525/20]
View answer262. Deputy Fergus O'Dowd asked the Minister for Finance if he will respond to concerns (details supplied) about the future of travel companies here; and if he will make a statement on the matter. [21547/20]
View answer264. Deputy Niamh Smyth asked the Minister for Finance the supports available to travel agents and particularly staff working in the sector (details supplied); his plans to support the sector; and if he will make a statement on the matter. [21552/20]
View answer269. Deputy Willie O'Dea asked the Minister for Finance if he has been contacted by an association (details supplied) regarding the impact which Covid-19 has had on its business; if his attention has been drawn to the fact that it has requested that the temporary wage subsidy scheme be retained at the rate of €350 per week for its employees; if he will consider special arrangements for the business in view of the fact that Covid-19 has impacted more severely on the business than on most other businesses; and if he will make a statement on the matter. [21817/20]
View answerI propose to take Questions Nos. 261, 262, 264 and 269 together.
Many of the strictest public health restrictions on the economy have been eased so it is appropriate that the level of State subsidy be moderated, while also recognising that economic outputs are unlikely to return to normal for many businesses for much of the rest of 2020 because of the continued need to observe some requirements such as social distancing.
Looking forward, the Employment Wage Subsidy Scheme (EWSS) is an economy-wide scheme that will focus primarily on business eligibility, delivering a flat rate subsidy based on the number of qualifying employees. This change from the Temporary wage Subsidy Scheme (TWSS) will allow employers to rely on the continuation of support over a longer period of 8 months while also ensuring such support is sustainable and affordable.
The main subsidy level of €203 per paid worker per week granted under the EWSS is commensurate with the average payment per worker under the TWSS which has been reducing since the start of June. Since 14 August, the figure was €283 across all recipients and €219 in the case of first-time recipients.
In addition to the direct support, it is important to note that a 0.5% rate of employers PRSI will continue to apply for employments that are eligible for the subsidy. This represents a considerable saving for the employer in addition to the flat rate subsidy.
I am aware of the concerns that have been raised regarding the pace of recovery for particular sectors of the economy such as the retail Travel Agency sector, and that it has been suggested that the level of support be increased and/or that the application of some of the new State supports should be delineated on the basis of explicit sectorial qualification criteria.
However, the reality of COVID-19 is that our whole economy and labour market have been rapidly transformed by this unprecedented shock and nearly all sectors have been negatively impacted either directly or indirectly.
The objective of the EWSS is to support employment and maintain the link between the employer and employee insofar as is possible and the scheme has been deliberately designed as an economy wide measure, open to all sectors. The primary qualifying criteria for the EWSS is the “turnover test” where the employer must be able to demonstrate that they are operating at no more than 70% from July to December 2020 compared with the same period in 2019. Such a test can be applied to the whole economy, but at the same time focus on employers that are most in need of support.
In addition to the EWSS, attention is also drawn to the various other Government supports that were announced in the July Stimulus Package such as the Re-Start Grants and Credit Guarantee scheme which may also apply to the sector highlighted by the Deputies.
