Written Answers Nos. 313-338
313. Deputy Richard Boyd Barrett asked the Minister for Finance if there is a formal process for appeals for refusal of the temporary wage subsidy scheme payment from the Revenue Commissioners; and if he will make a statement on the matter. [19743/20]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS) was legislated for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. The key eligibility criteria for the scheme are that:
- the business is suffering significant negative economic impact due to the pandemic, specifically the employer must demonstrate to Revenue’s satisfaction that, by reason of the Covid-19 pandemic and the consequent disruption to business, the employer’s turnover or business orders will be reduced by at least 25% for the period from 14 March 2020 to 30 June 2020;
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020; and
- the February 2020 payroll submissions were submitted by the employer to Revenue before, in general, 15 March 2020 but recently extended, by concession, to 1 April 2020.
The operation of the scheme is largely based on self-assessment principles. Compliance with the eligibility criteria is fundamentally a question of fact. Accordingly, there is no formal appeal mechanism as such provided for in the legislation. However, in the absence of such a mechanism, Revenue has taken a reasonable and pragmatic approach to the issue of disputes whereby, via their customer complaints procedures, aggrieved businesses can engage with Revenue on the matter by providing supporting evidence and submissions setting out their rationale for inclusion in the TWSS.
314. Deputy Louise O'Reilly asked the Minister for Finance the estimated cost of reintroducing a tax relief on trade union subscriptions; and if he will make a statement on the matter. [19798/20]
Amharc ar fhreagraThe following table sets out details of the cost of the tax relief for trade union subscriptions in the seven years immediately prior to its end, including 2010 (in which year, the measure cost some €26 million):
|
Year |
Cost (€ million) |
No. of Claims |
|
2004 |
10.7 |
248,300 |
|
2005 |
11.8 |
272,100 |
|
2006 |
19.2 |
294,300 |
|
2007 |
20.7 |
316,300 |
|
2008 |
26.4 |
341,900 |
|
2009 |
26.7 |
345,800 |
|
2010 |
26 |
337,500 |
I am advised by Revenue that while these figures may not provide an accurate indicator of future costs of a new scheme, there is no other basis available to Revenue on which to estimate such costs.
315. Deputy Louise O'Reilly asked the Minister for Finance the estimated cost if the Revenue Commissioners were to apply a zero rate of VAT to face masks using the European Commission decision to allow goods to combat Covid-19 to be imported from outside the EU free of import duties and VAT; and if he will make a statement on the matter. [19799/20]
Amharc ar fhreagraAs I have outlined previously, the VAT rate changes implemented by Revenue following the European Commission Decision C (2020)2146, fully implemented the scope for zero rating imports of COVID-19 related goods permitted by the Decision and also implemented a corresponding temporary zero rating of similar, specified domestic supplies. Any further extension of zero rating to cover supplies of medical equipment and/or personal protection equipment to other sectors and businesses would require a change in legislation at EU level; the VAT Directive would not permit a legislative measure for the application of the zero rate of VAT to such supplies and there are no grounds in the Commission Decision that would support the adoption of such a measure, even on a temporary basis.
316. Deputy Claire Kerrane asked the Minister for Finance the person or body responsible for stamp duty here; and if he will make a statement on the matter. [20109/20]
Amharc ar fhreagraIn accordance with section 137 of the Stamp Duties Consolidation Act 1999, all duties for the time being chargeable by law as stamp duties are under the care and management of the Revenue Commissioners.
317. Deputy Michael Healy-Rae asked the Minister for Finance if the help-to-buy scheme will be extended to first-time buyers buying a second-hand property or home (details supplied); and if he will make a statement on the matter. [20149/20]
Amharc ar fhreagraAn increase in the supply of new housing remains a priority aim of Government policy.
The Help to Buy (HTB) scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties.
If HTB were also available for second-hand properties, it would limit the incentive effect on the provision of additional supply.
I have no plans to extend the Help to Buy incentive (HTB) to second-hand properties.
318. Deputy Catherine Murphy asked the Minister for Finance the legal cases the State Claims Agency is currently handling on behalf of each Department; the stage they are at; the nature of the claim; and if he will make a statement on the matter. [20122/20]
Amharc ar fhreagraIt was not possible for the State Claims Agency to provide the information sought in the time available and, therefore, I will make arrangements to provide the information to the Deputy in line with Standing Orders.
319. Deputy Matt Carthy asked the Minister for Finance the estimated amount Ireland will contribute in total to the EU Covid-19 response recovery fund announced by the European Council; and if he will make a statement on the matter. [20261/20]
Amharc ar fhreagra320. Deputy Matt Carthy asked the Minister for Finance the estimated amount Ireland will receive from EU Covid-19 response recovery fund announced by the European Council; the amount that will be comprised of grants and loans, respectively; and if he will make a statement on the matter. [20262/20]
Amharc ar fhreagraI propose to take Questions Nos. 319 and 320 together.
As the Deputy will be aware, on 21 July 2020, Heads of State and Government reached agreement on the Post-2020 Multiannual Financial Framework (MFF) and Next Generation EU, totalling €1.82 trillion. Difficult discussions took place over four days but the Government welcomes this agreement. It is a fair and balanced outcome and demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis. Council conclusions set out the leaders’ agreement for the European Commission to borrow €750 billion, supporting Member States with €390 billion in grants and €360 billion in loans. Agreement was also reached on a new MFF from 2021 – 2027, totalling €1.074 trillion, which will support rural and regional development, and the transformation of our economies in line with the climate transition, research and development, and digital agendas.
In May 2020, the European Commission produced a needs assessment underpinning the proposed Next Generation EU. In this needs assessment the European Commission estimate that Ireland’s contributions to the Next Generation EU package would be in the region of approximately €18.7 billion over thirty years and estimated that Ireland would potentially receive a total of up to €2 billion in grants, with a further €1 billion in loans available up to 2024 should Ireland decide to borrow same. The amounts in this needs assessment have been overtaken by European Council conclusions, as agreed by leaders on 21st July although Ireland remains a significant net contributor to the recovery fund.
We will need to see the European Commission’s official allocation for Member States, but at this point Ireland’s estimated grant allocation amounts to €1.278 billion made up of:
- €177m EAFRD allocation
- €204m React EU
- €44m Just Transition Fund
- €853m Recovery and Resilience Facility (This is only 70% of the total amount available under this Facility, with potential additional grant allocation from the remaining 30% of the Facility to be allocated in 2023 – this could potentially be in the region of €300m)
Further receipts should be available to Ireland under competitively awarded programmes but amounts are difficult to estimate at this point.
In terms of loans under the NGEU, we estimate that Ireland could potentially avail of approximately €1.4 billion.
Exact contributions to the repayment of NGEU borrowing are yet to be determined (and will depend on whether new Own Resources are agreed) but are expected to be significant. At this time of crisis the Covid recovery funds are needed now, but will be paid back over 30+ years.
321. Deputy Matt Carthy asked the Minister for Finance the estimated amount Ireland will contribute to the next EU multi-annual financial framework based on the agreement reached at the European Council; and if he will make a statement on the matter. [20263/20]
Amharc ar fhreagra322. Deputy Matt Carthy asked the Minister for Finance the estimated amount Ireland will receive across all programmes from the next EU multi-annual financial framework; and if he will make a statement on the matter. [20264/20]
Amharc ar fhreagra323. Deputy Matt Carthy asked the Minister for Finance the estimated amount Ireland will receive from each programme line of the next EU multi-annual financial framework as agreed by European Council in tabular form; and if he will make a statement on the matter. [20265/20]
Amharc ar fhreagraI propose to take Questions Nos. 321 to 323, inclusive, together.
As the Deputy will be aware, on 21st July 2020, Heads of State and Government reached agreement on the Post-2020 Multiannual Financial Framework (MFF) and Next Generation EU, totalling €1.82 trillion. Difficult discussions took place over four days but the Government welcomes this agreement. It is a fair and balanced outcome and demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis. Council conclusions set out the leaders’ agreement for the European Commission to borrow €750 billion, supporting Member States with €390 billion in grants and €360 billion in loans. Agreement was also reached on a new MFF from 2021 – 2027, totalling €1.074 trillion, which will support rural and regional development, and the transformation of our economies in line with the climate transition, research and development, and digital agendas.
Ireland has been a net contributor to the EU Budget in 2014, and since then, this position has grown further. Ireland’s contributions to the Post-2020 MFF are expected to rise over the coming period from approximately €3 billion in 2021, to over €4 billion in 2027, an average of €3.5 billion per annum. We estimate that our receipts from the Post-2020 MFF will be in the region of approximately €2 billion each year. Data on actual EU Budget receipts are published annually in my Department’s Budgetary Statistics each Autumn for the previous year – 2021 receipt data will be published in Autumn 2022. As such, at this point my Department does not have information regarding Ireland’s actual receipts for the Post-2020 MFF.
324. Deputy Louise O'Reilly asked the Minister for Finance the estimated cost of reducing the VAT for the tourism and hospitality sector from 13.5% to 9% for a full year based on VAT intake for the first six months of 2020. [20387/20]
Amharc ar fhreagra325. Deputy Louise O'Reilly asked the Minister for Finance the VAT collected from the 13.5% VAT levied on the tourism and hospitality sector in the first six months of 2020. [20388/20]
Amharc ar fhreagraI propose to take Questions Nos. 324 and 325 together.
I am advised by Revenue that VAT returns and payments are largely due two months in arrears. I am also advised that the returns to do not separately identify payments at 13.5% (or at other rates).
Exchequer VAT receipts are €5.3 billion for the first six months of 2020 but for the reasons stated, it is not possible to identify the share of this arising at the 13.5% rate from the tourism and hospitality sector.
Regarding Question 20387/20, I am advised by Revenue that based on analysis of its own data and of CSO information for 2019, and also taking into account my Department’s updated projections for VAT receipts in 2020, it is estimated that reducing the VAT rate for the tourism and hospitality sector from 13.5% to 9% for a full year could cost approximately €500 million.
326. Deputy Louise O'Reilly asked the Minister for Finance if there will be legislation brought forward to reduce insurance costs for businesses in view of the crippling cost of business insurance [20397/20]
Amharc ar fhreagraLet me say at the outset that I am very much aware of the problems faced by many businesses in relation to the availability and affordability of public liability insurance. However, neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, and neither can we compel any insurer operating in the Irish market to provide cover to community groups or organisations, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. In addition, the Government has no direct influence over award levels, as awards are a matter for the Judiciary.
As the Deputy will appreciate, there is no single policy or legislative fix to remedy the cost and availability of insurance issue. Reforms have been made and we have seen some improvement in some aspects of the insurance market but what is now needed is for the ongoing reform measures to be implemented and to quickly bear fruit. In this regard, the Programme for Government identifies a range of issues that the Government will prioritise so as to benefit consumers, including small businesses, as well as in the various community groupings and facilities throughout the country. This cross-Departmental insurance reform agenda, which I believe builds and expands upon previous work done by the Cost of Insurance Working Group, is a priority for this Government and in particular for my Department.
In terms of addressing insurance premiums for small businesses, particularly those in the leisure sector, a necessary step is to bring the levels of personal injury damages awarded in this country more in line with those awarded in other jurisdictions. The establishment of the Judicial Council last December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the Judicial Council by 28 October. The guidelines could play a role in the lowering of award levels and also could lead to a more consistent application of making awards in courts. Insurance Ireland has commented that if award levels come down so will premiums charged by its members. I believe that this is a very important commitment and this Government intends holding the insurance industry to their previous statements in this regard.
In conclusion, I wish to emphasise that insurance reform is a priority for the Government and as noted above this is reflected in the Programme for Government. This is an issue I, as Minister for Finance, along with my Departmental colleague, Minister of State Fleming, will focus on. In doing so we will be cooperating with our Ministerial colleagues that will be participating in the Cabinet Committee on Economic Recovery and Investment in terms of prioritising the commitments on insurance reform.
327. Deputy Pearse Doherty asked the Minister for Finance the number of individual earners who do not qualify for the stay and spend initiative on the grounds that they have neither income tax nor USC liabilities; and if he will make a statement on the matter. [20407/20]
Amharc ar fhreagra328. Deputy Pearse Doherty asked the Minister for Finance the number of individual earners who have neither USC nor income tax liabilities (details supplied). Details; in similar format to that given in Tables 3 and 4 of Income Tax Strategy Group – 19/03 Paper, published July 2019 [20408/20]
Amharc ar fhreagraI propose to take Questions Nos. 327 and 328 together.
The tables referred to by the Deputy in question 328, which is regularly used in Tax Strategy Group paper on Income Tax (most recently in 2019), is based on data that is presently set out on page 3 of the Revenue Ready Reckoner at the following link:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx .
Attention is drawn to the caveat at the beginning of this document that makes clear that the costings shown are based on revised tax forecasts, that they are tentative costings and likely to be revised as further information becomes available particularly in the current economic climate.
This source table is re-produced here as follows:
|
Ready Reckoner |
|
No. of Tax payer Units** |
% of |
|
Income Tax* |
|
440,400 |
18 |
|
|
Standard Rate (20%) |
1,120,700 |
45 |
|
|
Exempt |
911,100 |
37 |
|
USC* |
8% rate |
185,200 |
7 |
|
|
4.5% rate |
1,083,100 |
44 |
|
|
2% rate |
488,300 |
20 |
|
|
Exempt |
715,600 |
29 |
|
Paying Neither Income Tax or USC |
|
715,600 |
29 |
|
Total Income Earners |
|
2,472,200 |
|
*Shows the breakdown by the highest rate of Income Tax and USC paid by taxpayer unit.
** Married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit.
The figures in this table are subject to rounding to the nearest hundred.
In respect of question 349, based on the above data it is estimated that 715,600 taxpayer units will not have an income tax or USC liability in 2020 so it is possible that they may not be able to benefit from the Stay and Spend Incentive. However, I would highlight that this estimate is based on data that was published in May 2020 and is derived from Revenue’s tax modeller which is prospective in nature, based on the most recent tax return data (for 2017) modelled forward using the most up-to-date forecast data produced by the Department of Finance (April 2020).
329. Deputy Pearse Doherty asked the Minister for Finance the deadlines by which qualifying expenditure must be submitted to the Revenue Commissioners using the mobile app under the stay and spend initiative for a tax credit to be received by a person in 2021 and 2022, respectively; and if he will make a statement on the matter. [20410/20]
Amharc ar fhreagra330. Deputy Pearse Doherty asked the Minister for Finance the company awarded the public contract to develop the mobile app for the purposes of the stay and spend initiative; the cost of same; and if he will make a statement on the matter. [20411/20]
Amharc ar fhreagraI propose to take Questions Nos. 329 and 330 together.
I am advised by Revenue that qualifying expenditure in relation to the Stay and Spend tax credit will be submitted to Revenue using the RevApp. This information will then be used to prepopulate the individual’s tax return to facilitate a claim being made for this tax credit. All claims must be made within 4 years after the year in which the qualifying expenditure was incurred.
The RevApp, which was launched in 2016, is a free mobile app, provided by Revenue to assist taxpayers to record and keep track of receipts for expenses. For example, it can be used to track health expenses and expenses relating to trading or rental income, and it can also be used for other documents. Storing the receipts on the RevApp negates the requirement for taxpayers to keep paper copies of such receipts.
Revenue is currently in the process of redeveloping the RevApp and upgrading its technology. This work, which is estimated to cost €72,000, commenced earlier this year. The work is being undertaken internally by Revenue’s Information Technology Division and, thus, was not subject to a public procurement process. The development of an interface specifically for the Stay and Spend initiative will be a minor enhancement to work already in progress.
For the 2020 tax year, the Stay and Spend tax credit will be determined by reference to the qualifying expenditure incurred between 1 October 2020 to 31 December 2020. For the 2021 tax year, the period during which qualifying expenditure may be incurred is 1 January 2021 to 30 April 2021. Under the measure the maximum tax credit available in respect of 2020 and 2021 is €125 per claimant, and €250 in the case of jointly assessed couples.
Finally, I am advised by Revenue that they will issue detailed guidance material on this measure in the coming weeks.
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 fhreagra333. 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 fhreagra350. 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 fhreagraI 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.
334. Deputy Ged Nash asked the Minister for Finance his plans to protect the employment wage subsidy scheme from significant waste and abuse of funds in view of the warning from his officials regarding the temporary wage subsidy scheme; and if he will make a statement on the matter. [20474/20]
Amharc ar fhreagraThe legislation contained in the Financial Provisions (Covid-19)(No.2) Bill provides that certain elements, such as the turnover test threshold, may be revised in the event that there is an opportunity to make changes that minimise deadweight while also fulfilling the objective of supporting employment as well as enabling employers scale back up their business.
The new Section 28B subclause (6) that is introduced by Section of that Bill contains the specific provision that recognises that, as Minister for Finance I have a duty to monitor the EWSS and have regular assessment carried out to determine whether it is necessary to adjustment the level of certain elements of the scheme, having consulted with the Minister for Social Protection and the Minister for Public Expenditure and Reform Public Expenditure and updating as appropriate by secondary legislation. The specific elements are:
- the end date of the measure;
- the rate of subsidy and applicable income threshold per employee; and
- the turnover test to determine qualifying employers.
In additional, the 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.
Finally, 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). 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 expect that Revenue will, in due course, undertake an appropriate employer compliance campaign relating to the EWSS similar to the compliance exercise currently being undertaken in relation to the Temporary Wage Subsidy Scheme.
335. Deputy Ged Nash asked the Minister for Finance his plans for training or job transfer measures as part of the employment wage subsidy scheme as is included in the German scheme; his plans to ensure eligibility to the scheme is conditional on the production of agreed training and reskilling plans of each employee to improve the comparatively low rate of in-work training and increase productivity here; and if he will make a statement on the matter. [20475/20]
Amharc ar fhreagra336. Deputy Ged Nash asked the Minister for Finance his plans to protect existing workers from displacement or loss of income from the employment wage subsidy scheme; his plans to exclude temporary agency workers, those holding a work contract with another employer and trainees from the new scheme; and if he will make a statement on the matter. [20476/20]
Amharc ar fhreagra337. Deputy Ged Nash asked the Minister for Finance his plans to ensure compulsory and conditional top-ups to the full amount of an employee's pre-existing wage for those employers availing of the employment wage subsidy scheme; and if he will make a statement on the matter. [20477/20]
Amharc ar fhreagra338. Deputy Ged Nash asked the Minister for Finance his plans to make access to the employment wage subsidy scheme conditional on respect for workers' rights such as no outstanding or unimplemented WRC adjudications of Labour Court recommendations, compliance with an ERO if applicable and commitment to collective bargaining and-or collective agreements; and if he will make a statement on the matter. [20478/20]
Amharc ar fhreagra340. Deputy Ged Nash asked the Minister for Finance the measures that are being put in place to ensure employees in firms availing of the employment wage subsidy scheme are protected from economic dismissal; if employers availing of the scheme will be obliged to inform workers' representatives and Revenue in the case of a planned dismissal; if they will lose the wage subsidy for such workers during the agreed notice period; and if he will make a statement on the matter. [20480/20]
Amharc ar fhreagra341. Deputy Ged Nash asked the Minister for Finance his plans for a clawback mechanism in cases in which an employer availing of the employment wage subsidy scheme makes over 20% of staff redundant when using the scheme in circumstances in which the redundancies were not agreed with a recognised trade union; and if he will make a statement on the matter. [20481/20]
Amharc ar fhreagraI propose to take Questions Nos. 335, 336, 337, 338, 340 and 341 together.
Section 2 of the Financial Provisions (Covid-19) (No. 2) Bill 2020 makes provision for the introduction of the Employment Wage Subsidy Scheme (EWSS) which will ultimately replace the Temporary Wage Subsidy Scheme (TWSS). Both schemes will run in parallel from 31 July 2020 until the TWSS ceases at the end of August 2020. Employers who have already availed of the TWSS may make an additional claim for non-TWSS employees in the EWSS from 31 July. This is to provide additional flexibility in circumstances where employees were not previously eligible to be paid via TWSS, such as new hires and seasonal workers. If applicable, some claims may be backdated for employees who have been paid from 1 July 2020.
The EWSS is a stand-alone measure to support firm viability through an unprecedented enterprise environment and it is based on clear, objective criteria that may be determined by the Revenue Commissioners.
Concerns around manipulation of access to the EWSS have been addressed to the greatest extent possible and it is not appropriate to link qualification for the EWSS with matters that are more appropriate for employment law or training bodies.
The position in relation to the EWSS and the TWSS does not affect any legal obligations that the employer may have to their employee as regards any terms, conditions or entitlements of their employment, including pay, sick pay or pension schemes.
Subsection 2(6) of Section 2B of the Financial Provisions (Covid-19) (No. 2) Bill 2020 has safeguards in place. It states that except for bona fide commercial reasons, an employer cannot access the EWSS if they have laid off a qualifying employee and replaced them with two or more qualifying employees who work less hours with the aim of increasing the number of qualifying employees so that they can get an increased subsidy payment.
Anything beyond that would be expressly outside of the remit of the Revenue Commissioners, but there are a sufficient number of bodies that deal with employment disputes in Ireland and where there is a high amount of expertise including the Workplace Relations Commission and the Labour Court. There are already checks and balances in place to ensure fairness to employees and employers.
Further, the proposed legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the EWSS 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.
Finally, the administration of the EWSS will be placed under the care and management of Revenue, as was done with its predecessor, the 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, Revenue will, in due course, undertake an appropriate employer compliance campaign relating to the EWSS.
