Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Covid-19 Pandemic Supports

Dáil Éireann Debate, Thursday - 30 July 2020

Thursday, 30 July 2020

Ceisteanna (332, 333, 350)

Gerald Nash

Ceist:

332. Deputy Ged Nash asked the Minister for Finance his plans to set a maximum duration for individual companies availing of the proposed employment wage subsidy scheme; if a review and compliance audit will be included; and if he will make a statement on the matter. [20472/20]

Amharc ar fhreagra

Gerald Nash

Ceist:

333. Deputy Ged Nash asked the Minister for Finance his plans for a broader compliance and auditing of the proposed employment wage subsidy scheme; and if he will make a statement on the matter. [20473/20]

Amharc ar fhreagra

Gerald Nash

Ceist:

350. Deputy Ged Nash asked the Minister for Finance the number of compliance inspections for the temporary wage subsidy scheme; the number of Departmental staff who have been assigned to compliance duties; and if he will make a statement on the matter. [20490/20]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 332, 333 and 350 together.

I do not propose to set a maximum duration for individual companies to avail of the proposed employment wage subsidy scheme (EWSS).

However, I would point out to the Deputy that the proposed EWSS legislation contains a number of important safeguards and flexibilities in so far as the scheme’s operation and effectiveness is concerned.  I am required under the proposed law to monitor the scheme and to have economic assessments made every 2 months, having regard to data from the Live Register, the State’s receipts and expenditure, data relating to the impact of Covid-19 and the impact of Brexit in the event of there being no trade agreement with the UK.  Following such an assessment and following consultation with my colleagues, the Minister for Public Expenditure and Reform and the Minister for Social Protection, it is my duty under the proposed law to determine if the proposed expiry date of the EWSS requires extension, if the prescribed test for employer eligibility for the EWSS needs adjustment and, lastly, if the rates of subsidy and/or the income thresholds associated with the rates of subsidy need adjustment.  Where I so determine that one or more such actions is or are required, I will make the appropriate order or orders, which will be brought before the House for approval.

I should also point out that the proposed EWSS legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances.  Following such review, if it is manifest to the employer that it no longer will meet the eligibility test for qualification for the scheme, namely, at least a 30 per cent reduction in business turnover or customer orders in the period from 1 July to 31 December 2020 by reference to the corresponding 2019 period, then the employer must immediately cease claiming wage subsidy payments.

The administration of the EWSS will be placed under the care and management of Revenue, as was done with its predecessor, the Temporary Wage Subsidy Scheme (TWSS). The Deputy will be aware of Revenue’s ongoing compliance programme relating to the TWSS. While Revenue’s focus on the EWSS in its early stages will no doubt be concentrated on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments receive the payments quickly, I have no doubt but that Revenue will, in due course, undertake an appropriate employer compliance campaign relating to the EWSS.

In relation to the Deputy’s queries on the Temporary Wage Subsidy Scheme, I am advised by Revenue that, due to the number of employers involved, the compliance checks are being carried out on a phased basis over the next few months. To date, checks have been initiated on some 15% of employers availing of the TWSS, encompassing almost 40% of employees supported by the scheme. Revenue has also confirmed to me that approximately 600 staff are involved in the programme at this stage.

I am further advised by Revenue that, to date, the response to the compliance checks has been very positive. Most of the employers contacted have provided a prompt and satisfactory response to Revenue’s information requests. As I advised the Deputy previously, a relatively small number of cases have been escalated to a more detailed examination by Revenue and these enquiries are ongoing.

Barr
Roinn