Skip to main content
Normal View

Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 13 October 2020

Tuesday, 13 October 2020

Questions (103)

Brendan Griffin

Question:

103. Deputy Brendan Griffin asked the Minister for Finance if he will address a matter (details supplied) regarding the pandemic unemployment payment and level 3 restrictions; and if he will make a statement on the matter. [30059/20]

View answer

Written answers

The design of the Employment Wage Subsidy Scheme (EWSS) reflects the changing environment around the COVID-19 pandemic which has shifted from crisis mode to one of living alongside the virus, in line with the recently announced Resilience and Recovery 2020-2021: Plan for Living with COVID-19.

The Government’s focus has therefore shifted from an employee income support paid via the employer that maintained the existing employee/employer relationship insofar as was possible, to a direct employer subsidy to help support viable firms and encourage employment, including prospective employment of new hires and seasonal workers.

It is appropriate that the level of State subsidy be moderated as many of the strictest public health restrictions on the economy that were in place in April and May have been eased and so it is expected that businesses are able to shoulder more of the economic burden of their businesses, including wages. 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.

A number of new flexibilities have been included in the EWSS, while the rates and eligibility criteria have been modified so that the support is sustainable into the more medium term. In that regard, I would note that the level of subsidy being granted under the EWSS is commensurate with the average payment per worker under the TWSS which had been reducing since the start of June and when the TWSS ceased at the end of August was €282 across all recipients and €225 in the case of first-time recipients.

It is important to emphasise that the adaptation from the TWSS to the levels of support in the EWSS will allow employers to rely on the continuation of support over a longer period of up to 8 months while also ensuring such support is sustainable and affordable.

Finally, for those 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.

Top
Share