Dáil Éireann Debate, Wednesday - 19 January 2022
353. Deputy John Brady asked the Minister for Finance if there are plans to introduce financial supports for small businesses who do not meet the criteria for the employment wage subsidy scheme and have had to close temporarily due to staff shortages and or staff contracting Covid-19; and if he will make a statement on the matter. [2107/22]
View answerThe 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.
The eligibility criteria for Employment Wage Subsidy Scheme (EWSS) are based on self-assessment principles and the legislation provides that an employer must be able to demonstrate that his or her business will experience a 30% reduction in turnover or customer orders between 1 January and 31 December 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic.
As the Deputy may be aware, as announced on 9th December the enhanced rates of EWSS subsidy would apply for a further two months, December 2021 and January 2022. This will give certainty to businesses when they need it most.
The Government and I have been clear that there will be no cliff edge to supports for employers but we have also 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 costs to the Exchequer.
As such, from 1 February 2022, the original two-rate structure of €203 per week and €151.50 per week will apply; for March and April 2022 the flat rate subsidy of €100 per week will apply and the scheme will end on 30 April 2022.
The Government further announced on 21st December 2021, that the EWSS will reopen for certain businesses who would otherwise not be eligible and that such businesses can continue to be supported until the expiry of the scheme on 30 April 2022. The new arrangements for EWSS will provide employers who have previously availed of EWSS but who are no longer eligible, with the opportunity to re-qualify for the scheme where they meet certain conditions. Broadly, to re-qualify the business must experience a 30% reduction in turnover, or customer orders during a particular reference period. Depending on the particular circumstances of the business in question, the re-opening of EWSS may be relevant to certain businesses who previously didn’t qualify for EWSS as at 31 December 2021.
Further details of the qualifying conditions can be located on my Department’s website at the following link-
www.gov.ie/en/press-release/bf5d1-government-announces-significant-expansion-of-supports-for-businesses-affected-by-the-latest-public-health-restrictions/.
As the Deputy may be aware the Covid Restriction Support Scheme (CRSS) remains in place to support businesses who are required to close or significantly restrict customers from accessing their business premises, and who meet the qualifying criteria. Under the relevant legislation, the CRSS was due to end on 31 December 2021 but it was extended to the end of January 2022.
The Tax Debt Warehousing Scheme remains available to support businesses that are experiencing tax payment difficulties arising from the COVID-19 pandemic. The scheme applies to VAT debts, PAYE (Employer) debts, certain self-assessed income tax debts and overpayments of both the Temporary Wage Subsidy Scheme (TWSS) and the EWSS.
On 20 December 2021 the Government agreed to extend the tax debt warehousing scheme to extend the period where liabilities arising can be “warehoused” to the end of Q1 2022 for taxpayers eligible for the COVID-19 support schemes; this means that interest free period for those taxpayers will now be 1 April 2022 to 31 March 2023, extending the period by 3 months from 31 December 2022.
It is worth pointing out the comprehensive package of other business and employer supports that have been made available over the course of the last 18 months or so and are still available, such as the CRSS and the Credit Guarantee Scheme, for businesses with reduced turnover as a result of public health restrictions. A full list of the Covid-19 Income Supports Schemes available to businesses can be obtained via the Department of Enterprise, Trade and Employment’s at the following link -
enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/
In addition, I would also draw the Deputy’s attention to Fáilte Ireland’s Tourism Business Continuity Scheme 2022, which was launched last week. Further details can be obtained via the following link –
www.failteireland.ie/tourism-business-continuity-programme.aspx
Finally, as has been the case throughout the pandemic, the Government will continue to monitor developments closely.
