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Covid-19 Pandemic Supports

Dáil Éireann Debate, Thursday - 17 September 2020

Thursday, 17 September 2020

Questions (78, 82)

Éamon Ó Cuív

Question:

78. Deputy Éamon Ó Cuív asked the Minister for Finance if it is planned to modify the employment wage subsidy scheme to give further assistance to the sectors dependent on foreign tourists to ensure their survival until international travel recommences; and if he will make a statement on the matter. [24543/20]

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Pádraig MacLochlainn

Question:

82. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if the financial assessment of tourism businesses availing of the employment wage subsidy scheme will consider the entirety of income for 2020 rather than recent months; and if a distorted picture of their financial income year to date will be provided. [24509/20]

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Written answers

I propose to take Questions Nos. 78 and 82 together.

I am aware of the concerns that have been raised regarding the pace of recovery for some sectors of the economy and that it has been suggested that the application of some of the new State supports should be delineated on the basis of explicit sectoral qualification criteria.

However, I would note that 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 Employment Wage Subsidy Scheme (EWSS) has therefore been deliberately designed as an economy wide measure that is open to all sectors as was the case for the Temporary Wage Subsidy Scheme (TWSS) before it.

The EWSS is designed to maintain the link between employees and employers and a number of flexible elements have been introduced in the EWSS that have particular benefit to the tourism sector raised by the Deputies. For example, it includes employees that were not previously eligible for the TWSS, such as seasonal workers and new hires, and applications for such workers under the EWSS may be backdated to 1 July 2020.

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.  

I am advised by Revenue that, as of 15 September 2020, there were 33,348 employers registered for the EWSS which is considered a strong level of participation so far and, notably, proportionately more than half of all those who availed of the TWSS over the whole duration of that scheme. As a result, there are no plans at present to re-visit the core eligibility criteria for the EWSS.  However, I can confirm to the Deputies 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 across the whole scheme where I determine that these are necessary. 

For those businesses who need further support, 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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