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Departmental Schemes

Dáil Éireann Debate, Wednesday - 12 May 2021

Wednesday, 12 May 2021

Questions (97)

Marc MacSharry

Question:

97. Deputy Marc MacSharry asked the Minister for Finance if restaurant and bar owners providing outdoor dining services will be able to continue to avail of the employment wage subsidy scheme when they are permitted to reopen from 7 June (details supplied); and if he will make a statement on the matter. [24761/21]

View answer

Written answers

The Employment Wage Subsidy Scheme (EWSS) is an economy-wide scheme that is open to all sectors. It focuses primarily on business eligibility, delivering a per-head subsidy on a flat rate basis to the employer. The objective of the EWSS is to support businesses, encourage employment and help to maintain the link between employers and employees. The 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, payments of over €3 billion and PRSI credit of over €500 million have been granted to 48,900 employers in respect of 558,000 workers.

The EWSS “turnover test” has been specifically designed so as to target the subsidy at otherwise viable employers whose businesses continue to be adversely impacted by Covid-19 by requiring a comparison of the firm’s pre-pandemic operations with their current operations. The primary employer qualification for the EWSS is based on the employer's turnover in the current six-month period being less, compared with the same pre-pandemic position period in 2019. The legislation provides that the employer must be able to demonstrate that it is operating at no more than 70% in either the turnover of business or the customer orders received by the employer by reference to the period from 1 January to 30 June 2021 compared with the equivalent period in 2019.

To answer the specific point raised in the Deputy's question, the turnover qualification requirement for EWSS applies regardless of whether the business is required to close fully or partially due to public health restrictions, or indeed if the business could remain open throughout the pandemic. The “turnover test” is the determining factor as regards eligibility for the EWSS and accordingly, the business must have suffered at least a 30% decrease in its turnover and this disruption is due to the Covid-19 pandemic.

The EWSS is designed to be flexible for the employer and take account of potentially sudden changes in turnover so if there is a reduction in turnover in the future because of a change in circumstance the employer may be entitled to make a claim for that later period.

With the agreement by Government on the revised plan, COVID-19 Resilience and Recovery 2021: The Path Ahead, a cautious and measured approach will be taken as we lay the foundations for the full recovery of social life, public services and the economy. It is therefore appropriate that key business supports should remain in place until the end of June 2021.

As the revised plan is implemented, the EWSS will play an important role in getting people back to work as public health restrictions are eased, thereby reducing the numbers dependent on social welfare payments over time, including the Pandemic Unemployment Payment (PUP).

The Government’s position remains that there will be no cliff-edge to the EWSS. 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 will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.

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