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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 31 March 2021

Wednesday, 31 March 2021

Questions (393, 394)

Imelda Munster

Question:

393. Deputy Imelda Munster asked the Minister for Finance the estimated cost of extending the employment wage subsidy scheme for the tourism and hospitality sector until March 2022. [17607/21]

View answer

Imelda Munster

Question:

394. Deputy Imelda Munster asked the Minister for Finance the estimated cost of extending the employment wage subsidy scheme for the tourism and hospitality sector until the end of 2021. [17608/21]

View answer

Written answers

I propose to take Questions Nos. 393 and 394 together.

I am aware of concerns that have been raised regarding the pace of recovery for the live events 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 sectoral 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 Employment Wage Subsidy Scheme (EWSS) is to support all employment and maintain the link between the employer and employee insofar as is possible and 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 €2.4 billion have been made and PRSI relief worth over €408m granted to over 48,100 employers in respect of over 542,000 employees.

Over the past 5 full months while level 5 restrictions have been in place, the average cost has been €380m per month in direct subsidy and €60m per month in PRSI foregone. The scheme is demand led and the cost ultimately depends on a number of factors, including the numbers of employers making a valid claim for the subsidy and the numbers of employees they claim the subsidy in respect of. The cost would also depend on the criteria that was applied for the scheme, such as the employer and employee eligibility, the actual rates of subsidy being given, and the extent of public health restrictions.

I have always been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made on Tuesday 23 February, it has been decided that the scheme is now to be extended until the end of June 2021.

Consideration is being given to the fact that continued support could 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.

The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.

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