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Covid-19 Pandemic Supports

Dáil Éireann Debate, Thursday - 28 January 2021

Thursday, 28 January 2021

Questions (38, 52)

Jackie Cahill

Question:

38. Deputy Jackie Cahill asked the Minister for Finance his plans to continue the employment wage subsidy scheme in view of the continued impacts of Covid-19 on businesses, considering that the current restrictions have the potential to severely impact the hospitality sector in particular in 2021; and if he will make a statement on the matter. [4784/21]

View answer

Éamon Ó Cuív

Question:

52. Deputy Éamon Ó Cuív asked the Minister for Finance if he plans to extend the wage subsidy scheme to the end of 2021 in view of the ongoing Covid-19 pandemic and the effect it is having particularly on the tourism industry; and if he will make a statement on the matter. [4824/21]

View answer

Written answers

I propose to take Questions Nos. 38 and 52 together.

I am aware of the very serious impact of the Covid-19 pandemic on sectors of the economy, including the tourism and hospitality sectors. 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 Employment Wage Subsidy Scheme (EWSS) is to support all employment and maintain the link between the employer and employee insofar as is possible. The Employment Wage Subsidy Scheme (EWSS) has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. To date, subsidy payments of over €1.5 billion have been made and PRSI relief worth over €270m granted to over 41,600 employers in respect of over 467,000 employees.

I have been clear that there will be no cliff-edge to the EWSS. It is noted that the legislation implementing the measure provides that it will be in place until 31 March 2021, but also provides that the scheme may be extended until the end of June 2021 if required and subject to certain procedural conditions.

It is likely that continued support will be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible. Decisions on the form of such support will take account of emerging circumstances and economic conditions as they become clearer.

In the meantime, I am satisfied that the design of the Employment Wage Subsidy Scheme (EWSS) fully takes account of the changing environment around living with the COVID-19 pandemic, in line with Resilience and Recovery 2020-2021: Plan for Living with COVID-19.

For those businesses who may need additional support at this time, I would draw attention to the comprehensive package of other business and employer supports that have been made available since the July Stimulus Plan and Budget 2021 - including the Covid Restriction Support Scheme (CRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.

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