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Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 30 November 2021

Tuesday, 30 November 2021

Questions (198, 203, 208)

Jackie Cahill

Question:

198. Deputy Jackie Cahill asked the Minister for Finance if he will consider extending the employment wage subsidy scheme for employers impacted by Covid-19 considering that private bus operators in particular are struggling as a result of reduced passenger numbers due to Covid-19 fears; and if he will make a statement on the matter. [58372/21]

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Kathleen Funchion

Question:

203. Deputy Kathleen Funchion asked the Minister for Finance if he will consider the extension of current employment wage subsidy scheme levels for the tourism and hospitality sector until April 2022 at the earliest given that these measures are due to be significantly scaled back from 1 December 2021 and that this will have a serious impact on the vitality of many tourism businesses in counties Carlow and Kilkenny. [58778/21]

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Christopher O'Sullivan

Question:

208. Deputy Christopher O'Sullivan asked the Minister for Finance if his attention has been drawn to the issue that small hospitality providers are experiencing with employment wage subsidy scheme and the qualifying criteria of 30% reduction of turnover; and if he will make a statement on the matter. [59090/21]

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Written answers

I propose to take Questions Nos. 198, 203 and 208 together.

The objective of the Employment Wage Subsidy Scheme (EWSS) is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the Covid-19 crisis.

In money terms, the overall support provided to-date (25th November) by EWSS is almost €6.5 billion comprising direct subsidy payments of €5.58 billion and PRSI forgone of €877 million to 51,700 employers in respect of over 690,300 employees.

The EWSS legislation provides that for employers to be eligible for the EWSS, they must be able to demonstrate that their business will experience a 30% reduction in turnover or customer orders for the calendar year 2021 compared to the calendar year 2019 and that this disruption to normal business is caused by the COVID-19 pandemic. This 30% reduction metric, which applies on a self-assessment basis, has been in place since EWSS came into effect in September 2020. I would also draw attention to the fact that, despite the exit from restrictions, it was not tightened in the Finance (Covid-19 and Miscellaneous Provisions) Act 2021 which was enacted in the summer and which extended the scheme beyond end-June 2021 nor is there any proposal to do so in the provisions of Finance Bill which is currently being debated by the Oireachtas. In fact, the reference period to which the metric must be applied was broadened out in the above Act to span a full year thus effectively relaxing the conditionality to qualify to benefit from the scheme in most cases.

Government policy has been that there will be no cliff edge to the support, at the same time it is necessary to gradually unwind and phase out this temporary emergency support measure. That is why, on Budget Day, I announced the extension of EWSS in a graduated form until 30 April 2022. This ensures there will be no sudden end to the EWSS and also provides clarity and certainty to business.

Since the onset of the Covid-19 pandemic, the Government has adopted a proactive and dynamic approach to supporting businesses and individuals insofar as possible during this challenging time.

As regards the EWSS and the current circumstances referenced by the Deputies in their questions, the Government continues to monitor developments closely and will consider if any response is required at an appropriate time.

Finally, I would draw the Deputies attention to the comprehensive package of other business and employer supports that have been made available over the course of the last 18 months or so – including the Covid Restriction Support Scheme (CRSS), the Business Resumption Support Scheme (BRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme. Details of the supports are available on the Department of Enterprise, Trade and Employment’s website at the following link enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.

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