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Tuesday, 15 Sep 2020

Written Answers Nos. 232-251

Public Transport

Questions (232)

James Lawless

Question:

232. Deputy James Lawless asked the Minister for Transport the number of passengers boarding at each of the individual train stations from Dublin to Newbridge train station, County Kildare, in the past three years in tabular form; and if he will make a statement on the matter. [23938/20]

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Written answers

As the Minister for Transport, Tourism and Sport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport.

The issue raised is an operational matter for Iarnród Éireann and I have forwarded the Deputy's question to the company for direct reply.

Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Airport Passenger Data

Questions (233, 234)

Mairéad Farrell

Question:

233. Deputy Mairéad Farrell asked the Minister for Transport the nationality of the 26 passengers on board an aircraft (details supplied) that flew from Washington DC and landed in Dublin Airport at approximately 00:49 on 26 June 2020 and that departed Dublin Airport for Benghazi, Libya, at 02:10 approximately on 26 June 2020. [24017/20]

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Mairéad Farrell

Question:

234. Deputy Mairéad Farrell asked the Minister for Transport the number and nationality of passengers that were on board an aircraft (details supplied) that travelled from Benghazi, Libya, and refuelled at Dublin Airport at approximately 13:41 on 31 July 2020 on its way to Dulles Airport in Washington DC; and the number and nationality of passengers on board the same aircraft on its return journey from Dulles Airport in Washington DC to Benghazi, Libya, with a refuelling stop at Dublin Airport at approximately 03:33 on 2 August 2020. [24018/20]

View answer

Written answers

I propose to take Questions Nos. 233 and 234 together.

My Department does not hold information relating to the nationality of passengers passing through Dublin airport. As GainJet Aviation is an EU air operator, there was no requirement for it to seek air traffic rights or other flight approvals from my Department.

Procedures for the collection and use of Passenger Name Records (PNR) is provided for under the European Union (Passenger Name Record Data) Regulations 2018, S.I No. 177 of 2018. The relevant body for collection of such data in Ireland is the Irish Passenger Information Unit of the Department of Justice. The unit also collects Advance Passenger Information (API) data for all inbound flights to Ireland from outside the European Union.

The release of any such information would be a matter for The Department of Justice and Equality.

Road Projects

Questions (235)

James Lawless

Question:

235. Deputy James Lawless asked the Minister for Transport the progress on the Sallins bypass construction project; the stage each component is at; the projected dates to open the 9A M7 junction, the spur road back into Sallins village and the bypass proper; the reason for recent delays; and if he will make a statement on the matter. [24058/20]

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Written answers

As the Deputy is aware, the improvement and maintenance of regional and local roads (RLR) is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from local authorities' own resources supplemented by State road grants.

The main design and construction elements of the Naas Bypass widening Scheme, the Osberstown Interchange and the Sallins Bypass are being progressed under one construction contract. The Department is providing grant assistance for the Sallins Bypass element of the scheme.

Kildare County Council, as the contracting authority, has overall responsibility for the implementation of the scheme and the engagement with the contractor on the delivery of the various elements of the scheme mentioned by the Deputy. In this context the Council is best placed to report on progress by the contractor in delivering different elements of the scheme and to advise on how this compares with the scheme programme.

Driver Licences

Questions (236)

Fergus O'Dowd

Question:

236. Deputy Fergus O'Dowd asked the Minister for Transport if he will respond to correspondence from a person (details supplied) in respect of the National Driver Licence Service; and if he will make a statement on the matter. [24133/20]

View answer

Written answers

This is a matter for the Road Safety Authority. I have referred the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response is not received within 10 days.

Driver Test

Questions (237)

Seán Sherlock

Question:

237. Deputy Sean Sherlock asked the Minister for Transport the delays in driving tests in each test centre; the amount of time applicants are awaiting a test; and the age profile of applicants in tabular form. [24141/20]

View answer

Written answers

As 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.

A referred reply was forwarded to the Deputy under Standing Order 51

National Car Test

Questions (238)

Seán Sherlock

Question:

238. Deputy Sean Sherlock asked the Minister for Transport the number of cars that failed the NCT for dipped headlights in June, July, August and to date in September 2020. [24142/20]

View answer

Written answers

The operation of the National Car Test (NCT) service is the statutory responsibility of the Road Safety Authority and I have therefore referred the question to the Authority for direct reply.

I would ask the Deputy to contact my office if a response has not been received within ten days.

A referred reply was forwarded to the Deputy under Standing Order 51

Public Transport

Questions (239, 240)

Seán Sherlock

Question:

239. Deputy Sean Sherlock asked the Minister for Transport if he will make additional funding to Bus Éireann to allow Leap card loading on buses. [24147/20]

View answer

Seán Sherlock

Question:

240. Deputy Sean Sherlock asked the Minister for Transport the amount of funding required to fund a nationwide roll-out of near field communication, NFC, payments on public transport. [24152/20]

View answer

Written answers

I propose to take Questions Nos. 239 and 240 together.

As Minister for Transport, Tourism and Sport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure, including provision of integrated ticketing systems.

Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.

A referred reply was forwarded to the Deputy under Standing Order 51

Roads Maintenance

Questions (241)

Seán Sherlock

Question:

241. Deputy Sean Sherlock asked the Minister for Transport the status of the Fota Road in Cobh, County Cork; and if funding will be allocated to upgrade same. [24153/20]

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Written answers

The improvement and maintenance of regional and local roads is the statutory responsibility of the relevant local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from the Council's own resources supplemented by State road grants.

The extent of the cutbacks in grant funding during the post 2008 recession meant that grant funding for road improvement schemes had to be curtailed because expenditure on maintenance/renewal was falling well short of what was required to adequately maintain the regional and local road network.

The National Development Plan (NDP) does provide for the gradual build up in funding for the road network but funding is not yet at the level needed for the adequate maintenance and renewal of regional and local roads. For this reason the primary focus for capital investment at present is the maintenance and renewal of the network and implementation of the 12 regional and local road projects identified for development, subject to necessary approvals, in the NDP.

Some limited provision is being made in the capital budget for the appraisal of a pipeline of upgrade projects. This is intended to cover the appraisal of projects for future development, if possible.

All proposed projects must now comply with the revised Public Spending Code published in December 2019. An important change to the Public Spending Code is the introduction of a requirement for a Strategic Assessment Report (SAR) for all projects with an estimated expenditure of €10 million or more. The SAR is now a key deliverable at the first decision stage in the project appraisal process.

The purpose of the Strategic Assessment Report is to examine the rationale for a proposed project and to ensure the strategic alignment of projects with Government policy, including the National Planning Framework and National Development Plan. The SAR is also an important step in the project lifecycle in that potential alternatives for an intervention are assessed and identified for further appraisal should the project progress to the Preliminary Business Case phase of the appraisal process. Once completed, a SAR needs approval from both the Department and the Department of Public Expenditure.

As regards the R624 Fota Road, there was some initial engagement between Cork County Council and my Department last year, including a meeting with the Department’s Strategic Research and Analysis Division regarding the project appraisal process. My Department understands that Cork County Council is now proposing to appoint consultants to carry out a transport study which will look at all options in relation to access to Cobh and Great Island.

Departmental Projects

Questions (242)

Gerald Nash

Question:

242. Deputy Ged Nash asked the Minister for Transport the number of Exchequer-funded projects over €1 billion overseen by his Department; the expected rise in cost in both numerical amount and percentage terms in tabular form, and delays as result of Covid-19; and if he will make a statement on the matter. [24313/20]

View answer

Written answers

The information requested by the Deputy is currently being collated by my officials and will be forwarded to the Deputy within 10 working days.

Help-To-Buy Scheme

Questions (243)

Christopher O'Sullivan

Question:

243. Deputy Christopher O'Sullivan asked the Minister for Finance if he has considered extending the help-to-buy scheme to include non-new builds in rural areas. [23477/20]

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Written answers

The 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 legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997, as amended. In addition to requiring that the new property is occupied as the sole or main residence of a first time purchaser, the legislation also defines a ‘qualifying residence’ for the purposes of the scheme. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. Thus, for a property to qualify for HTB, it must be new or converted for use as a home not having been previously been used as a home. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for the HTB incentive.

An increase in the supply of new housing remains a priority aim of Government policy. The Help to Buy (HTB) scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties. If HTB were also available for second-hand properties, it would limit the incentive effect on the provision of additional supply.

I have no plans to extend HTB to second-hand properties.

Civil Service

Questions (244)

Fergus O'Dowd

Question:

244. Deputy Fergus O'Dowd asked the Minister for Finance if a reply will issue to correspondence from a person (details supplied) regarding the person's role as a retained firefighter; and if he will make a statement on the matter. [23526/20]

View answer

Written answers

As outlined in my reply to Parliamentary Question reference 16793/20 on 22 July, I am advised by Revenue that the person concerned is employed as a Clerical Officer with Revenue in Dundalk, in full-time capacity, Monday to Friday. The retained firefighter role requires availability on call, six days out of eight and is not therefore compatible with a fulltime post in Revenue.

Covid-19 Pandemic Supports

Questions (245)

John Lahart

Question:

245. Deputy John Lahart asked the Minister for Finance if taxi drivers will be transferred to the wage subsidy scheme in view of the fact they have lost 80% of their business and have been removed from the pandemic unemployment payment; and if he will make a statement on the matter. [23605/20]

View answer

Written answers

The Employment Wage Subsidy Scheme (EWSS) was legislated for in the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020. The objective of the EWSS is to support employment and maintain the link between the employer and employee insofar as is possible, as well as enabling employers scale back up their business.

The EWSS provides a flat-rate subsidy to qualifying employers based on the number of qualifying employees on the payroll. A sole-trader’s business may be a qualifying employer for the purpose of the scheme, the same as is the case for any other employer. As was the case under the Temporary Wage Subsidy Scheme (TWSS), sole-traders are not able to claim the EWSS in respect of their own employment as they are not employees.

The EWSS is a significant economy wide support for employers, but it is not the only measure that the Government have put in place to support businesses at this time, including those that are specifically targeted at sole-traders, such as the income tax loss relief measure that was announced in July as part of the Stimulus Package. This new once-off income tax relief is targeted at self-employed individuals carrying on a trade or profession who were profitable in 2019 but, as a result of the Covid-19 pandemic, incur losses in 2020. The measure allows such individuals to claim to have those losses (and certain unused capital allowances) carried back and deducted from their profits for the tax year 2019 providing a cash-flow boost of up to €5,000 or €10,000 as applicable.

Further, there are a range of other business support measures available, such as Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.

As regards the Pandemic Unemployment Payment, the position with respect to individuals’ entitlements to supplementary welfare payments is a matter for my colleague, the Minister for Employment Affairs and Social Protection.

Help-To-Buy Scheme

Questions (246)

Cathal Crowe

Question:

246. Deputy Cathal Crowe asked the Minister for Finance the eligibility of a person who has purchased a site with a derelict home on it that will be demolished in favour of a new build but must pay local property tax on the derelict home and wants to apply for the help-to-buy scheme as a first-time buyer or builder. [23808/20]

View answer

Written answers

The 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.

In addition to the conditions laid down in section 477C Taxes Consolidation Act 1997 (TCA), including that the property is occupied as the sole or main residence of a first time purchaser, section 477C(2) defines a ‘qualifying residence’. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. If the property was non-residential, but has been converted for residential use, it may qualify for HTB. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for HTB.

In the circumstances where the house was previously used as a dwelling but knocked down and rebuilt, then it is “new”. First-time buyers may purchase a site containing a house which is derelict and which they plan to demolish, in whole or in part, with the intention of building a new house. First time buyers intending to undertake such purchases should contact Revenue via MyEnquiries outlining the specific circumstances of their case and Revenue will consider them on a case by case basis.

For Revenue to make an assessment that the dwelling being built on the site is ‘new’, sufficient evidence is required which shows that the previous dwelling was demolished and replaced as opposed to being extended/refurbished. Revenue also require as much evidence as possible from the builder, engineer or other professionals working on the project, about the condition of the former dwelling which made it uninhabitable or unsound and required that it was demolished (and the extent of demolition involved). If there is any other information (photos, etc.) that’s relevant in helping Revenue understand that the property meets the criteria in the legislation, this should be included.

I am also advised by Revenue in relation to local property tax (LPT) that any property that is in use as, or that is suitable for use as, a dwelling house is chargeable to LPT. Therefore, the state of dereliction of a property is not relevant where the property is actually occupied as a dwelling house. However, a property that is derelict to such an extent that it is not suitable for occupation (or not actually occupied) is not taxable.

For further details please see the Revenue website link https://www.revenue.ie/en/property/local-property-tax/is-your-property-liable-lpt/is-your-property-uninhabitable.aspx .

Covid-19 Pandemic Supports

Questions (247)

Pat Buckley

Question:

247. Deputy Pat Buckley asked the Minister for Finance if his attention has been drawn to the potential that some employers might not be fully passing the wage subsidy scheme payment to their employees; the recourse for workers in this situation; and the steps he is taking to stop such practices and support workers that fall victim to it. [23897/20]

View answer

Written answers

The Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020. Revenue has advised me that it is currently conducting a programme of compliance checks on all employers who availed of the scheme in order to confirm that they met the eligibility criteria and, crucially, that their employees received the correct amount of subsidy due to them. As part of this programme, in order to ensure that employees were fairly treated and that TWSS funds were passed on to employees as intended, Revenue is seeking a sample of payslips from each employer. Under the TWSS legislation, employers were legally obliged to include the amount of subsidy paid on each employee’s payslips.

I am also advised by Revenue that where an employer has been paid a temporary wage subsidy in respect of an employee and it transpires that the employer has not passed on the wage subsidy to the employee, or that the employer was not entitled to receive the wage subsidy in respect of the employee, the relevant law requires that the employer must refund the wage subsidy amount to Revenue.

The TWSS has now been replaced by the Employment Wage Subsidy Scheme (EWSS) since 1 September as legislated for under the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020.

The specific nature and terms of the EWSS arrangement are separate and distinct from the TWSS: the EWSS is an economy-wide enterprise support that gives a flat rate subsidy to qualifying employers. The scheme is not an income support for employees, but is a stand-alone measure to preserve the link between employee and employer and support firm viability through an unprecedented enterprise environment and it is based on clear, objective criteria that may be determined by the Revenue Commissioners.

The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. For every qualifying employee paid between €203 and €1,462 gross wages per week, the level of subsidy paid to the employer is €203. For every qualifying employee paid between €151.50 and €202.99 gross per week, the subsidy is €151.50. No subsidy is payable in respect of employees paid less than €151.50 gross or more than €1,462 gross per week.

The question of an individual employee’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 are matters that are outside the remit of the EWSS. 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, subject, of course, to the employer paying the minimum amount of gross wages to an employee, as outlined above, in order to qualify for subsidy.

Anything beyond that would be expressly outside of the remit of the Revenue Commissioners, but there are a sufficient number of bodies that deal with employment disputes in Ireland and where there is a high amount of expertise including the Workplace Relations Commission and the Labour Court. Although these bodies fall under the remit of the Department of Business, Enterprise and Innovation, it is understood that there are already checks and balances in place to ensure fairness to employees and employers.

In terms of employer eligibility, the EWSS legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the EWSS must carry out a self-review of its business circumstances. Following such review, if it is manifest to the employer that it no longer will meet the eligibility test for qualification for the scheme, namely, at least a 30 per cent reduction in business turnover or customer orders in the period from 1 July to 31 December 2020 by reference to the corresponding 2019 period, then the employer must immediately cease claiming wage subsidy payments.

Finally, the administration of the EWSS will be placed under the care and management of Revenue, as was done with its predecessor, the TWSS. While Revenue’s focus on the EWSS in its early stages will no doubt be concentrated on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments receive the payments in a timely manner, I have no doubt but that Revenue will, in due course, undertake an appropriate employer compliance campaign relating to employer eligibility under the EWSS.

Vehicle Registration Tax

Questions (248)

Fergus O'Dowd

Question:

248. Deputy Fergus O'Dowd asked the Minister for Finance the number of vehicles that have been registered through the VRT system in each month during 2020; the total revenue received in VRT payments in each month in 2020; and if he will make a statement on the matter. [23957/20]

View answer

Written answers

I am advised by Revenue that the number of vehicles registered through the Vehicle Registration Tax (VRT) system in each month during 2020 is provided in the table below, along with the VRT payments received.

These figures are provisional and may be subject to some revisions.

Month

New

Used

Total

VRT receipts (Payments received €m)

January

38,199

9,277

47,476

€163.6

February

17,089

8,444

25,533

€99.8

March

8,468

6,495

14,963

€62.9

April

878

254

1,132

€25.4

May

2,628

965

3,593

€7.4

June

1,899

5,075

6,974

€15.9

July

26,847

11,554

38,401

€108.4

August

6,229

10,231

16,460

€68.0

Covid-19 Pandemic Supports

Questions (249, 265)

Seán Sherlock

Question:

249. Deputy Sean Sherlock asked the Minister for Finance the number of employers on the employment wage subsidy scheme by county. [24145/20]

View answer

Willie O'Dea

Question:

265. Deputy Willie O'Dea asked the Minister for Finance the number of persons presently in receipt of EWSS; if the Government is prepared to re-examine the conditions for eligibility to EWSS in view of the many critical comments regarding the scheme; and if he will make a statement on the matter. [23723/20]

View answer

Written answers

I propose to take Questions Nos. 249 and 265 together.

Revenue published detailed statistical updates on the TWSS on a weekly basis for the duration of the scheme in order to provide as timely and transparent data on the utilisation and impact of the TWSS as possible. These statistics are available at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.

The Employment Wage Subsidy Scheme (EWSS) was legislated for in the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020, replacing the TWSS from 1 September 2020 until March 2021. It provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. This adaptation from the 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.

As of 10 September, over 32,200 employers have registered for the Scheme which is a healthy level of applications and already nearly half of all those who availed of the TWSS over the duration of that scheme. As employers continue to register for the EWSS and file payroll with Revenue for the relevant employees, the numbers of employees that will be supported by the scheme will be made available and the implications of the movement from TWSS to EWSS will be assessed. Revenue has confirmed that it has started to include information on the EWSS in their statistics, also located at the above link. The EWSS detail in the statistics, including the numbers of employees being supported, will be expanded in the coming weeks as the scheme progresses.

In the meantime, I can confirm that it is expected that the EWSS will support around 350,000 jobs into the beginning of 2021. On this basis, it is estimated that the EWSS will cost €2.25 billion (€1.35 billion in 2020 inclusive of seasonal workers and €0.9 billion in 2021).

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. The Government is therefore committed to supporting employers by means of a wage subsidy, and it is recalled that since March 2020 over €2.8 billion of support has been given to over 65,000 employers covering over 660,000 workers via the TWSS. A further €2.25 billion has been allocated to the EWSS until the end of March 2021 and the Deputies’ attention is also drawn to the comprehensive package of business and employer supports that have been made available as part of the July Stimulus Plan, such as the Re-Start Grants and Credit Guarantee scheme.

I can confirm to the Deputy that the operation of the EWSS and its effectiveness will be kept under close review over the coming months. In fact, the relevant legislation obliges me to monitor and superintend the administration of the scheme and empowers me to make certain adjustments where I determine that these are necessary.

Tax Code

Questions (250)

Neale Richmond

Question:

250. Deputy Neale Richmond asked the Minister for Finance when a review of the tax bands will take place; and if he will make a statement on the matter. [23296/20]

View answer

Written answers

The stabilisation of the economy from 2015 to 2019 allowed for reductions in the personal tax burden introduced in five successive Budgets. It focused on reductions to income tax targeted at low to middle income earners. The lower rates of Universal Social Charge were reduced from 2%, 4% and 7% to 0.5%, 2% and 4.5%, respectively. The income tax standard-rate band was increased by €2,500 from €32,800 to €35,300 for single individuals and from €41,800 to €44,300 for married one earner couples, and the higher rate of income tax was reduced from 41% to 40%. By making these changes, the Government made steady and sustainable progress in reducing the income tax burden for low and middle income earners by concentrating on increasing the level that workers pay the marginal rate of income tax.

The Programme for Government ‘Our Shared Future’ contains a number of specific undertakings with regard to personal taxation, including:

- There will be no increases in income tax or USC rates.

- In Budget 2021, there will be no change to income tax credits or bands. From Budget 2022 onwards, in the event that incomes are again rising as the economy recovers, credits and bands will be indexed linked to earnings. This will be done to prevent an increase in the real burden of income tax, to prevent more low-income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates.

The extent to which it may be possible to make progress in this regard will depend on prevailing economic circumstances.

During the current crisis, the Government’s priority is to ensure that assistance is given to employees and businesses in a sustainable and affordable manner. Even though many of the strictest public health restrictions on the economy have been eased, 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.

Covid-19 Pandemic Supports

Questions (251)

Neale Richmond

Question:

251. Deputy Neale Richmond asked the Minister for Finance the status of the review of the employment wage subsidy scheme as it relates to cash flow issues for businesses; and if he will make a statement on the matter. [23297/20]

View answer

Written answers

The Employment Wage Subsidy Scheme (EWSS) is an economy-wide enterprise support that gives a flat rate subsidy to qualifying employers to preserve the link between employee and employer and support firm viability through an unprecedented enterprise environment.

The EWSS has been in operation since July and it replaced the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020. It will remain in place until March 2021, thereby allowing employers to rely on the continuation of support over a longer period of 8 months while also ensuring such support is sustainable and affordable.

As set out in the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020, payment of the EWSS will be made following receipt of the regular monthly payroll return to Revenue which is due on the 14th of the month following payment of the emoluments. The transfer of the subsidy will, in general, be made within two working days after receipt of the monthly payroll submission. Depending on the pay-date used by the employer, this may be as short a turnaround as 16 days, although it could be up to 6 weeks after the pay date in some cases.

The up-to-date position is that having regard to the timeline for employers to make claims to Revenue for support under EWSS, which aligns with the normal operation of the PAYE system, it is likely to be closer to the end of this month or early next month before we are in a position to get a fuller picture of the operation of the payment system and to evaluate its efficacy.

The main purpose behind the adaption from the TWSS is to reduce the administrative burden of the scheme for employers by regularising the procedure for the processing of payments, and thereby reduce errors and the need for reconciliations which have had to take place under the TWSS.

It is acknowledged that the turnaround time for payments under the TWSS in some cases was shorter, but this is one of a number of changes in the nature and operation of the EWSS, many of which are more flexible than the TWSS – for example, the types of worker who qualify has been broadened to include seasonal workers and new hires.

Many of the strictest public health restrictions on the economy have been eased and it is expected that businesses are able to shoulder more of the economic burden of their businesses, so it is appropriate that the level of State subsidy be moderated. At the same time, it is recognised that economic outputs are unlikely to return to normal for many businesses for much of the rest of 2020, which is why the Government remains committed to supporting employers by means of a wage subsidy.

For these businesses who need further support, or who experience cash-flow difficulties arising for the timing of the subsidy payments, there are a number of options open to them – including State backed loans which may be repaid using EWSS funds as well as grants. Particular attention is drawn to the comprehensive package of business and employer supports that have been made available as part of the July Stimulus Plan - including the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.

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