Dáil Éireann Debate, Tuesday - 22 September 2020
246. Deputy Richard Bruton asked the Minister for Finance if additional Covid-19 supports are being considered for sectors whose revenue throughout the period of the new Covid-19 Roadmap are likely to be impacted to a far greater extent than 30% which has featured to date in the design of supports of general application. [25269/20]
Amharc ar fhreagraI am aware of the concerns that have been raised regarding the pace of recovery for some sectors of the economy and that it has been suggested that modifications should be made to some of the new State supports on the basis of particular sectoral characteristics.
However, I would note that the reality of COVID-19 is that our whole economy and labour market have been rapidly transformed by this unprecedented shock and nearly all sectors have been negatively impacted either directly or indirectly.
The Employment Wage Subsidy Scheme (EWSS) has therefore been deliberately designed as an economy wide measure that is open to all sectors as was the case for the Temporary Wage Subsidy Scheme (TWSS) before it.
The EWSS is designed to maintain the link between employees and employers and a number of flexible elements have been introduced in the EWSS, for example, it includes employees that were not previously eligible for the TWSS, such as seasonal workers and new hires, and applications for such workers under the EWSS may be backdated to 1 July 2020.
Many of the strictest public health restrictions on the economy have been eased and it is expected that businesses are able to shoulder more of the economic burden of their businesses, so it is appropriate that the level of State subsidy be moderated. At the same time, it is recognised that economic outputs are unlikely to return to normal for many businesses for much of the rest of 2020, which is why the Government remains committed to supporting employers by means of a wage subsidy.
I am advised by Revenue that, as of 21 September 2020, there were 35,097 employers registered for the EWSS which is considered a strong level of participation so far and, notably, proportionately more than half of all those who availed of the Temporary Wage Subsidy Scheme (TWSS) over the whole duration of that scheme. This is also 78% of all employers who availed of the TWSS at its close in August, with more applications expected before the end of September.
As a result, there are no plans at present to re-visit the core eligibility criteria for the EWSS including changes to the turnover benchmark. However, I can confirm to the Deputy that the operation of the EWSS and its effectiveness will be kept under close review over the coming months. In fact, the relevant legislation obliges me to monitor and superintend the administration of the scheme and empowers me to make certain adjustments across the whole scheme where I determine that these are necessary.
For those businesses who need further support, there are a number of options open to them – including State-backed loans which may be repaid using EWSS funds as well as grants. Particular attention is drawn to the comprehensive package of business and employer supports that have been made available as part of the July Stimulus Plan - including the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
