Dáil Éireann Debate, Thursday - 1 October 2020
92. Deputy Johnny Mythen asked the Minister for Finance if he will consider reviewing the 30% cap on the employment wage subsidy scheme (details supplied); and if he will make a statement on the matter. [28019/20]
Amharc ar fhreagraThe Employment Wage Subsidy Scheme (EWSS) is an economy-wide enterprise support that gives a flat rate subsidy to qualifying employers to preserve the link between employee and employer and support firm viability through an unprecedented enterprise environment.
The design of the Employment Wage Subsidy Scheme (EWSS) reflects the changing environment around the COVID-19 pandemic which has shifted from crisis mode to one of living alongside the virus, in line with the recently announced Resilience and Recovery 2020-2021: Plan for Living with COVID-19. As a result, a number of flexibilities have been included in the EWSS, while the rates and eligibility criteria have been modified so that the support is sustainable from an Exchequer cost perspective.
The primary qualifying criteria for the EWSS is that the employer must be able to demonstrate that they are operating at no more than 70% in either the turnover of the employer’s business or the customer orders received by the employer by reference to the period from July to December 2020 compared with the same period in 2019. This “turnover test” requires a comparison of the firm’s pre-pandemic operations with their current operations and has been specifically designed so as to target the subsidy at otherwise viable employers whose businesses continue to be adversely impacted by COVID-19.
There is additional flexibility in the application of the turnover test to allow employers to take account of potentially sudden changes in turnover on a month-to-month “opt-in/opt-out” basis. Under the legislation, an employer is required to carry out a review of their turnover each month and confirm that they are still eligible for the scheme. At the same time, there is no cut-off deadline for access to the scheme, so if there is a reduction in turnover later in 2020 because of an unexpected reduction in business activity or a sudden change in business circumstances the employer may be entitled to make a claim for that future period. In this regard, it should be noted that an employer needs to have registered before the first pay date they wish to claim for. As a result, it is possible that an employer would not need to avail of the scheme for September or October 2020 but make a valid application for November 2020 thereby taking account of business turnover fluctuations over the period.
There are no plans at present to re-visit the core eligibility criteria for the EWSS. 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.
I am advised by Revenue that as of 30 September some 37,165 employers have successfully registered for the scheme, which is considered a strong level of participation so far and, notably, over 83% of the employers availing of the TWSS when it finished at the end of August.
For 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.
