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Covid-19 Pandemic Supports

Dáil Éireann Debate, Thursday - 26 November 2020

Thursday, 26 November 2020

Ceisteanna (115)

Christopher O'Sullivan

Ceist:

115. Deputy Christopher O'Sullivan asked the Minister for Finance if he is reviewing any of the Covid-19 support schemes under the remit of his Department; and if he will make a statement on the matter. [39193/20]

Amharc ar fhreagra

Freagraí scríofa

In keeping with good practice, my officials review all schemes regularly to ensure that they are achieving their policy intention and are operating as expected.

In relation to accelerated corporation tax loss relief, I understand that Revenue received over 150 interim claims for accelerated corporation tax loss relief during the period 1 August to 30 October 2020 and the total cash value of those claims was over €43 million.

Revenue also publishes statistics on the Covid-19 support schemes it implements at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-support-schemes-statistics.aspx.

Section 11 of the Finance Bill deals with the Covid Restrictions Support Scheme and makes specific provision for an assessment "no less frequently that every three months beginning on 13 October 2020" and a determination of whether changes should be made to the scheme. Therefore, I will be looking at this after the passage of the Bill through the Oireachtas.

A number of issues were raised at Committee stage of the Finance Bill around the extension of relief from VAT for protection equipment and the reduced VAT rate of 9%. These are being examined and will be addressed as the debate on the Finance Bill continues in the Oireachtas.

The Financial Provisions (Covid-19) (No. 2) Act 2020 which was signed into law on 1 August 2020 provides that I, as Minister for Finance, have a duty to monitor the Employment Wage Subsidy Scheme (EWSS) and have regular assessment carried out to determine whether it is necessary to adjust the level of certain elements of the scheme. If the view is formed that changes are necessary, having consulted with my colleagues the Minister for Social Protection and the Minister for Public Expenditure and Reform Public Expenditure, I am empowered to amend such elements by way of secondary legislation.

The specific elements that may be amended in this way relate to:

- the end date of the measure, which be extended to a date no later than 30 June 2021;

- the rate of subsidy that may apply and the applicable employee income thresholds that such rates would apply to; and

- the criteria of the turnover test that determines qualifying employers.

The operation of the EWSS and its effectiveness continues to be kept under close review especially in light of the introduction of the Level 5 public health restrictions. In this regard it is noted that the measure continues to support the employment of around 350,000 workers in around 35,000 employers per month and accordingly there are no plans to re-visit the core eligibility criteria for the EWSS at this time.

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