Dáil Éireann Debate, Wednesday - 21 April 2021
474. Deputy Pádraig O'Sullivan asked the Minister for Finance if he will extend access to the Covid restrictions support scheme for businesses and persons that do not operate in rateable premises but still face considerable overheads as part of their operating costs, such as travel counsellors, those working in the arts and on-track bookmakers; and if he will make a statement on the matter. [18445/21]
View answer493. Deputy Marc MacSharry asked the Minister for Finance if he will review the provisions of the Covid restrictions support scheme as it applies to self-employed travel counsellors who are currently ineligible for the scheme (details supplied); and if he will make a statement on the matter. [19022/21]
View answer513. Deputy Brendan Griffin asked the Minister for Finance if an application (details supplied) for the Covid restrictions support scheme will be reviewed; and if he will make a statement on the matter. [19714/21]
View answerI propose to take Questions Nos. 474, 493 and 513 together.
The Covid Restrictions Support Scheme (CRSS) is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. Details of the CRSS are set out in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website at: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
To qualify under the scheme, a business must carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. The trade must be carried on from a business premises that is located in a region subject to restrictions introduced in line with the Government’s ‘Living with Covid-19 Plan’, with the result that the business is required to prohibit or significantly restrict customers from accessing its business premises.
To make a claim under the CRSS, a business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 in the case of a new business) multiplied by the number of weeks in the period for which a claim is made.
For the purposes of the CRSS, a business premises is defined as the building or similar fixed physical structure in which a business activity is ordinarily carried on. It does not require that the premises is a rateable premises. Mobile premises, or premises which are not permanently fixed in place, do not meet the definition of business premises.
A business that does not ordinarily operate from a fixed business premises, as in the case of an on-track bookmaker, or certain businesses in the arts sector, will not meet the eligibility criteria.
It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19. It is not sufficient that the business supplies goods or services to another business that is required to temporarily close, or significantly reduce, its activity as is the case with drinks wholesalers. The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or significantly restrict access to its business premises. Each business must satisfy the eligibility criteria in their own right.
A self-employed travel agent providing services from a home office, which is not customer-facing, will not meet the eligibility criteria.
The design and operation of the CRSS is centred around the concept of the “business premises”. The CRSS is paid in respect of the period for which the business is to prohibit, or significantly restrict, members of the public from having access to the business premises in which the relevant business activity is carried on.
I understand that self-employed travel counsellors may qualify for the COVID Pandemic Unemployment Payment (PUP) payment and that such travel agents providing services from a home office, which is not customer-facing, are likely to have significantly less overheads compared to a travel agent with a customer facing business. The CRSS payment is intended to enable businesses required to close or significantly restrict access to their premises, to meet their normal fixed costs such as rent, public liability insurance, utilities and so on associated with the premises.
The vast majority of businesses in Ireland are affected by Covid but the CRSS is intended to be a targeted scheme, and was specifically designed to provide additional support to the businesses who have had to close temporarily or significantly restrict access to their premises as a direct result of public health Regulations. It was never meant to be a general support measure for the entire economy.
There are no plans to change the eligibility criteria for the CRSS. The CRSS is targeted at businesses who are forced to restrict access to their premises on foot of health regulations. It is a part of the broad spectrum of Government supports being provided to assist businesses impacted by COVID-19 which include the PUP and the Employment Wage Subsidy Scheme (EWSS). Businesses may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme. The Small Business Assistance Scheme for COVID (SBASC) and Tourism Business Continuity scheme have also been established in order to support those businesses most at risk, with significant cost to the exchequer. Other schemes which have been established include the Live Performance Support Scheme (LPSS) and the Music Entertainment Business Assistance Scheme (MEBAS, both of which are targeted at supporting the commercial live performance sector.
The Government will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with my Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.
