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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 8 December 2021

Wednesday, 8 December 2021

Questions (48, 49, 50, 52)

Marian Harkin

Question:

48. Deputy Marian Harkin asked the Minister for Finance if he will reverse the decision to cut the employment wage subsidy scheme given the crisis being faced by the hospitality industry; and if he will make a statement on the matter. [60656/21]

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Cian O'Callaghan

Question:

49. Deputy Cian O'Callaghan asked the Minister for Finance if he will restore the employment wage subsidy scheme to its original rate given that the reintroduction of Covid-19 restrictions will have major consequences for an array of sectors; and if he will make a statement on the matter. [60658/21]

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Réada Cronin

Question:

50. Deputy Réada Cronin asked the Minister for Finance if he will restore the employment wage subsidy scheme to the full amount and extend its operation to February 2022 at least in order to support business and preserve jobs given the current circumstances of Covid-19 infection rates and the advice to the public to reduce their socialising with the attendant major impact on the still recovering hospitality sector; and if he will make a statement on the matter. [60697/21]

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Richard O'Donoghue

Question:

52. Deputy Richard O'Donoghue asked the Minister for Finance if discussions are expected to reinstate the employment wage subsidy scheme for the businesses that are being hit with cancellations which is causing loss of revenue due to new restrictions been introduced owing to the increase in Covid-19 numbers; and if he will make a statement on the matter. [60872/21]

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Written answers

I propose to take Questions Nos. 48 to 50, inclusive, and 52 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. It is an economy-wide scheme that operates across all sectors.

In money terms, the overall support provided to-date (2nd December) by EWSS is over €6.5 billion comprising direct subsidy payments of €5.684 billion and PRSI forgone of €893 million to 51,700 employers in respect of over 694,600 employees.

It is estimated that almost €1.5 billion in EWSS subsidy payments has been paid to the hospitality sector since the introduction of the scheme. Broadly, that is the largest share of payments to any sector and accounts for approximately 26% of all payments made to date.

The consistent approach of Government policy has been that there will be no cliff edge to the support under this scheme. At the same time, we have been clear that the EWSS cannot run indefinitely, nor is it sustainable to continue with the enhanced rates for a prolonged period of time given the very substantial cost to the Exchequer. It is also worth noting that, within the scheme, more than half of those that benefit from EWSS are in sectors outside of the hospitality sector and would not be impacted by the latest public health measures.

Last Friday, the Government decided that a targeted support in response to the further public health restrictions imposed on the hospitality sector would be introduced. The Deputies will be aware of the associated announcements that have been made. This targeted scheme will be modelled on the Covid Restrictions Support Scheme (CRSS) which operated effectively in the earlier phases of the pandemic when businesses were most heavily impacted by public health restrictions. The scheme will provide targeted and timely support to the hospitality sector to supplement the support they are receiving under the EWSS. Work is continuing at present to finalise all the various elements of this more focussed support measure which it is proposed will be paid weekly in arrears.

In the circumstances, the EWSS as an economy wide scheme will continue on the path laid out for it on Budget day with the necessary legislation for this currently being debated in the Houses of the Oireachtas. The Deputies may also wish to note that businesses affected by the recent public health restrictions may continue to benefit from EWSS alongside the more targeted scheme mentioned above.

Finally, as has been the case throughout the pandemic, the Government will continue to monitor developments closely and to respond appropriately as circumstances require.

Question No. 49 answered with Question No. 48.
Question No. 50 answered with Question No. 48.
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