Dáil Éireann Debate, Tuesday - 22 September 2020
229. Deputy Bríd Smith asked the Minister for Finance if the employment wage subsidy scheme will be reinstated at the full rate per week for the highly skilled staff and businesses working in the live events sector that are anxious to return to work; and if he will make a statement on the matter. [24906/20]
Amharc ar fhreagra269. Deputy Patricia Ryan asked the Minister for Finance if the employment wage subsidy scheme will be reinstated at the full rate per week for workers in the live performance and events sector; and if he will make a statement on the matter. [25587/20]
Amharc ar fhreagraI propose to take Questions Nos. 229 and 269 together.
The Temporary Wage Subsidy (TWSS) was in place for 22 weeks between 26 March and 31 August. It was introduced as an emergency income support for employees of vulnerable firms (where turnover had reduced by at least 25% during Q2 while the strictest public health measures were in place) and was paid via the employer so as to maintain employment links between the employee and employer insofar as was possible. To that end, the rate of Employers' PRSI was also significantly reduced to 0.5%. The level of income given to each individual employee was based on previous wages received in January and February 2020.
Since 1 September, the TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS) which will be in place until the end of March 2021. The EWSS is an employer subsidy to help support viable firms and encourage employment. The level of subsidy given to the employer is based on the number of paid workers on the payroll per week, applying prospectively so that claims may be made for new hires and seasonal workers. The primary employer qualification is based on the employer’s turnover in Q3 and Q4 2020 being less than 70% when compared with the same pre-pandemic period in 2019. A flat-rate per head subsidy of either €203 or €151.50 may be claimed for every employee who is paid between €151.50 and €1,462 per week. The EWSS will also continue the reduced rate of Employers' PRSI of 0.5%.
The adaptation from the TWSS to the levels of support in the EWSS will allow employers to rely on the continuation of support over a longer period of up to 8 months while also ensuring such support is sustainable and affordable. 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 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 the application of the EWSS should be delineated on the basis of explicit sectoral qualification criteria. 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 EWSS has therefore been deliberately designed as an economy wide measure that is open to all sectors as was the case for the TWSS before it. The availability of the support by reference to a turnover test means that the scheme can be applied across the whole economy while at the same time remain targeted at employers who are considered to be most in need of support, including the sector mentioned by the Deputies.
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 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. In addition, I would note that the level of subsidy being granted under the EWSS is commensurate with the average payment per worker under the TWSS which had been reducing since the start of June and since 14 August was €283 across all recipients and €219 in the case of first-time recipients. The reduced rate of Employers' PRSI mentioned above is also of significant financial benefit to employers.
As a result, there are no plans at the present moment to re-visit the rates of payment along the lines mentioned by the Deputies. The operation of the EWSS and its effectiveness will be kept under close review over the coming months and I am obliged to monitor and superintend the utilisation of the EWSS and may 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.
Finally, in the case of the sector highlighted by the Deputies, I would note that my colleague the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht, Ms. Catherine Martin T.D., has recently announced the establishment and membership of the Arts and Culture Recovery Task Force and funding for a Live Performance and Music Industry Support Package.
