Written Answers Nos. 41-60
41. Deputy Mairéad Farrell asked the Minister for Finance the composition of gross GNP by all income components, that is, dividends, interest, rents in each of the years 1990 to 2020 or the earliest and latest years for which this data is available in tabular form. [4796/21]
Amharc ar fhreagraSee Dail Question No. 175 (Ref 4430/21 answered on the 27th January 2021) for Gross Domestic Product at current market prices broken down by income components (compensation of employees, gross operating surplus, subsidies, taxes). GNP is given by GDP less Net factor income from the rest of the world as in Dail Question No. 39 (Ref 4794/21).
42. Deputy Mairéad Farrell asked the Minister for Finance the composition of real GNP in constant prices, that is, dividends, interest, rents and so on by all expenditure components, that is, personal consumption, central and local government spending, GFCF and so on in each of the years 1990 to 2020 or the earliest and latest years for which this data is available in tabular form. [4797/21]
Amharc ar fhreagraA breakdown of Gross National Product in terms of its income components is not available at constant prices.
See Dail Question No. 40 (Ref 4795/21) for Gross National Product at Constant Market Prices broken down by expenditure components.
See Dail Question No. 175 (Ref 4430/21 answered on 27th January 2021) for Gross Domestic Product at Current Market Prices broken down by income components (compensation of employees, gross operating surplus, taxes, subsidies). GNP is then given by GDP less Net factor income from the rest of the world as in Dail Question No. 39 (Ref 4794/21).
43. Deputy Réada Cronin asked the Minister for Finance his plans to introduce mortgage and rental payment breaks for those in receipt of the pandemic unemployment payment and employment wage subsidy schemes; the way such breaks would not affect their credit rating now and into the future; and if he will make a statement on the matter. [4584/21]
Amharc ar fhreagra53. Deputy Claire Kerrane asked the Minister for Finance if he will request the banks and all financial institutions to introduce mortgage breaks without additional interest for mortgage holders in order to support them in the midst of these most serious level 5 Covid-19 restrictions; and if he will make a statement on the matter. [4843/21]
Amharc ar fhreagraI propose to take Questions Nos. 43 and 53 together.
On 18 March last the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the COVID-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months. The implementation of this voluntary moratorium by the banking industry was a flexible response to the emerging COVID-19 crisis and ensured that a large volume of affected customers could benefit quickly during a fast moving and evolving public health crisis.
While many borrowers whose payment break has ended have been able to return to full payments, it is also recognised that many borrowers continue to be impacted by the economic consequences of COVID-19 and they may not be in a position to resume their loan repayment commitments when their payment break ends or may now be in difficulty for the first time. Regarding the issue of residential rental payment breaks, that is a matter which falls within the policy remit of my colleague the Minister for Housing, Local Government and Heritage.
First, regarding the offering of further payment breaks, the Deputy should be aware that the Central Bank has confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers, providing they are appropriate for the individual borrower circumstance. The BPFI has also reiterated this month that standard payment breaks continue to be part of the wide range of tailored solutions which are being made available to customers upon assessment of their situation.
In relation to the accrual of interest on loans during payment breaks, it is noted that lenders will continue to incur costs (both in respect of funding and enhanced operational requirements) and that other borrowers will continue to be liable for their interest charges. Payment break measures do not come without cost to the banking sector and these costs will also have to be managed in a way that protects their business and will be as fair as possible to the various stakeholders. From the outset, it has been made clear to banks that it will not be acceptable for them to make excess profits on payment breaks and that it will be a matter for them to demonstrate that such a situation will not arise.
Borrowers have a suite of regulatory protections, such as the Central Bank's Code of Conduct on Mortgage Arrears and the Consumer Protection Code, and lenders have specific obligations to support and work with borrowers who are continuing to experience loan difficulty because of COVID-19. The options could include additional flexibility, and this could be a short term arrangement such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements.
Regarding the Central Credit Register (CCR), it is important to note that the CCR does not produce credit ratings, rather its purpose is to provide factual information to lenders and borrowers on a borrower’s credit record. The Central Bank has also advised lenders that in their reporting to the CCR, they will need to apply judgement around whether a restructure has been agreed in response to an identification of financial distress and should be reported as such.
Through ongoing engagement with the BPFI and lenders, the Central Bank is working to ensure that borrowers affected by COVID-19 continue to be supported through this period of unprecedented stress. The Central Bank recently wrote to all lenders indicating that lenders are to ensure that they have sufficient expert resources to assess individual borrower circumstances, and to offer appropriate and sustainable solutions to affected borrowers in a timely manner in line with regulatory requirements and Central Bank expectations.
I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection and other applicable frameworks will be fully available to all borrowers that will still need support. Regarding the issue of residential rental payment breaks, that is a policy matter which falls within the remit of my colleague the Minister for Housing, Local Government and Heritage.
46. Deputy Eoghan Murphy asked the Minister for Finance if his Department has had engagement with the insurance sector regarding the availability of travel insurance for citizens that have received a Covid-19 vaccine. [4659/21]
Amharc ar fhreagraThe Deputy will appreciate that the decision of an insurer to provide travel insurance is a commercial one based on the level of risk that it is willing to take. Neither I, nor the Central Bank of Ireland, have any influence over the pricing of insurance products, nor can we compel any firm operating in the Irish market to provide cover to individual consumers. 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 their products.
In relation to Covid-19 and travel insurance, industry representatives Insurance Ireland advise customers to check their policy documents as the scope of the cover can vary. Generally, it notes that some policies provide cover for non-refundable cancellation costs where there is a government directive prohibiting travel. Others include an optional travel disruption extension. It should be noted however, that these policies were generally sold prior to mid-March 2020. Travel policies sold subsequently generally do not cover cancellation costs arising from Covid-19.
Currently, the Government strongly advises against all non-essential travel overseas, and I understand that there are no exemptions in place for those travelling to Ireland who have received a Covid-19 vaccine. I am aware that there is a wider debate at EU level on whether citizens who have received the Covid-19 vaccine should be able to travel more freely later this year. How this discussion interacts with the provision of travel insurance is likely to depend on a number of complex factors, including the travel advice that is provided at that time.
Finally, I would note that the recently published Action Plan for Insurance Reform includes commitments in relation to engaging with the industry on its COVID-19 customer response. I believe that this is an issue that will be monitored as the situation becomes clearer with the rollout of the National Vaccine Programme in Ireland and developments further afield.
48. Deputy Jackie Cahill asked the Minister for Finance his plans for the continuation of VAT and PAYE warehousing for the hospitality sector; and if he will make a statement on the matter. [4785/21]
Amharc ar fhreagraThe Debt Warehousing Scheme remains available to support businesses, including the hospitality sector, experiencing tax payment difficulties arising from the current COVID-19 public health restrictions. Currently, there are approximately 70,000 businesses availing of the scheme covering €1.9 billion in tax debt. An information leaflet is available on Revenue’s website at https://www.revenue.ie/en/corporate/communications/documents/debt-warehousing-reduced-interest-measures.pdf .
The scheme was expanded in Budget 2021 to include certain self-assessed income tax liabilities (balance of 2019 Income Tax liability and 2020 preliminary tax) and Temporary Wage Subsidy Scheme (TWSS) overpayments in addition to PAYE (Employer) and VAT tax debts that have arisen due to the COVID-19 crisis.
Under the scheme, these debts can be ‘parked’ on an interest free basis for 12 months following resumption of trading. At the end of the 12-month interest free period, the warehoused debt may be paid in full without incurring an interest charge or paid through a phased payment arrangement at a significantly reduced interest rate of 3% per annum. This compares to the standard rate of 10% per annum that would otherwise apply to such debts.
Any business, including those operating in the hospitality sector, experiencing trading difficulties as a result of COVID-19 restrictions can avail of the scheme whether it had done so during the previous period(s) of trading restrictions or not. Businesses that previously availed of the scheme, and subsequently resumed trading and paying their tax debts as they arose, can recommence using the scheme if their trade has again been impacted by the current restrictions, which will remain in place until 5 March 2020. The warehousing facility remains available to eligible businesses for at least two months after resuming trading, for example a business that resumes trading in March 2021 can continue to warehouse VAT and PAYE (employer) liabilities until June 2021.
Eligibility for the scheme remains the same in that access is automatic for SMEs and on request for larger businesses. It also remains a requirement that businesses continue to file all relevant tax returns for the restricted trading period(s) so that the tax debt can be quantified and included in the scheme.
Finally, Revenue has confirmed that it is in the process of writing directly to businesses availing of debt warehousing to confirm that the scheme remains available for those that have had to close or continue to be significantly negatively impacted by the current COVID-19 related restrictions.
49. Deputy Jackie Cahill asked the Minister for Finance his plans to support the hospitality sector in getting the insurance sector to pay compensation for business interruption as a result of Covid-19; and if he will make a statement on the matter. [4786/21]
Amharc ar fhreagraAt the outset it is important to note that working to protect customers during and after the COVID-19 crisis is a priority issue given its inclusion in the Programme for Government. As such, business disruption insurance is specifically included within the Action Plan for Insurance Reform, launched last month. I am in full understanding of the concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, including honouring business interruption claims. Whether a company is able to successfully claim on its business interruption policy due to a COVID-19 enforced closure will depend on the specific policy. This is ultimately a matter of contract law between the business and its insurer. While this is an issue that Minister of State Fleming and I continue to follow closely, it should be noted that neither we, nor the Central Bank of Ireland (CBI), can direct or require that insurers cover claims, including those resulting from infectious diseases such as COVID-19, nor can we adjudicate on the validity of such claims.
The above said, we both have had a number of engagements with the insurance industry on this issue, and have made it very clear that insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage. They should engage with those impacted businesses honestly, fairly and professionally to honour those elements of the policies covered, in line with the CBI’s Consumer Protection Code. Minister of State Fleming reiterated this expectation to the main insurers in the Irish market during his engagements with them late last year.
Separately, the CBI’s COVID-19 Business Interruption Supervisory Framework sets out its expectations of insurance firms in handling related insurance claims. The objective of the Framework is to seek early identification and resolution of issues which have the potential to cause customer harm and bring clarity to affected businesses as quickly as possible. Significantly, in my view, where cover and related issues are disputed, the CBI expects firms to pay the reasonable costs of customer plaintiffs in agreed test case litigation. On that point, I would note that a number of related test cases are before the High Court, with judgments due to be handed down next week. Accordingly, it would be inappropriate for me, or the Government to provide comment on these at this stage.
In conclusion, the Deputy should be assured that Minister of State Fleming and I will continue to monitor the business interruption issue and will engage appropriately with both insurers and the Central Bank of Ireland on the matter.
50. Deputy Éamon Ó Cuív asked the Minister for Finance his plans to exempt vehicles used for mountain rescue financed by voluntary donations and small grants from VRT; and if he will make a statement on the matter. [4814/21]
Amharc ar fhreagraSection 130 of the Finance Act 1992 (as amended by Section 102 of the Finance Act 2010) introduced, from 1 January 2011, a revised classification system for the assessment of VRT which reflects the categories used for classification of vehicles at European level under various EC Directives. Passenger Vehicles (EU Category M) and Commercial Vehicles (EU Category N) are classified based on the specifications of these vehicle types and in particular, the number of seats and their goods carrying capacity. There are no provisions for the classification of vehicles based on their usage.
A vehicle may be registered as an ambulance if it conforms to the definition provided in Regulation (EU) 2018/858. This states that the vehicle must be: “intended for the transport of sick or injured people and having special equipment for such purpose .” Furthermore, the layout and technical equipment of the patient compartment have to comply with the European requirement (IS EN 1789:2007 +A1: 2010 +A2:2014) on medical vehicles and their equipment. This standard emphasises, amongst other things, the ceiling clearance level of the patient compartment which gives sufficient space for the treatment of the casualty during transport. Under the terms of the Directive these vehicles are assigned an EU SC bodywork code as a special purpose vehicle at EU type-approval stage.
Vehicles such as converted 4x4s and sports utility vehicles cannot meet the required standards as set out above, in particular in relation to the ceiling clearance level and partitions. Revenue therefore regards them as category A which is consistent with their passenger transport design. When deployed operationally, the primary function of these vehicles is to support ground personnel and provide transport facilities for patients to take them from off-road areas to a waiting emergency ambulance. In addition, these 4x4s may not be exclusively used for the carriage of sick or disabled persons, as they may also be used as staff vehicles outside of specific events.
Any attempt to base VRT classification on the use of a vehicle as distinct from its design would be unworkable legislatively and administratively.
Many organisations which operate these types of vehicle are already in receipt of significant Government funding such as the Department of Rural and Community Development’s CLÁR programme. The purpose of this funding includes to help maintain their vehicle fleet.
Question No. 52 answered with Question No. 38.
Question No. 53 answered with Question No. 43.
54. Deputy Éamon Ó Cuív asked the Minister for Finance the steps he is taking to reduce the overall cost of insurance particularly liability insurance both employers and public; if his attention has been drawn to the fact that, for example, the quotes for insurance of jarveys of tourist horse and traps has gone up by over 200% in the past two years making it prohibitively expensive for persons in this line of business to insure their seasonal businesses; when the effect of the steps he is taking to create more competition in the market and reduce prices will be seen on the ground; and if he will make a statement on the matter. [4865/21]
Amharc ar fhreagraAt the outset, while I have an appreciation of the specific issue the Deputy raises, neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter. In addition, we cannot compel any insurer operating in the Irish market to provide cover to specific individuals or groups, such as those referenced in the question. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
I can assure you that insurance reform is a priority for this Government and I, along with my colleagues, am keenly aware of the pressures that businesses have faced over recent times including the cost of insurance. Those in the tourist sector, such as Jarveys, like all businesses have been significantly impacted by Covid and the Government has brought in a range of support measures to assist at this difficult time.
In regard to the cost of insurance, the recently-launched Action Plan for Insurance Reform contains a range of deliverables, including:
- increasing market transparency through the National Claims Information Database (NCID), including for employer and public liability insurance;
- reviewing the duty of care legislation;
- providing for the Judicial Council’s accelerated adoption by 31 July 2021 of new personal injuries guidelines to replace the Book of Quantum;
- consideration by the Department of Justice of the Law Reform Commission’s recent Report on Capping Damages in Personal Injuries Actions;
- looking at how to further enhance the role of the Personal Injuries Assessment Board; and,
- making proposals on increasing competition in the Irish insurance market.
Recognising that many businesses and self-employed persons need to see the impact of these reforms as soon as possible, the Action Plan contains 66 actions, 95% of which are due to be completed by the end of 2021. The focus is clearly on completing these actions in the short to medium term. I am hopeful that key reforms around personal injury awards may start to have an impact during this year on the pricing and availability of insurance.
With regard to increasing competition, the measures outlined in the Action Plan will undoubtedly reduce barriers to entry into the Irish insurance market. I would also highlight to the Deputy that an Office to Promote Competition in the Insurance Market has now been established in my Department. This will provide for a more joined-up policy response on promoting competition in this sector, as well as provide for greater information to assist consumers and businesses. Minister of State Fleming will report on its work to the Cabinet Sub-Group on Insurance Reform.
In conclusion, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention, along with Minister of State Fleming, to work with our Government colleagues to ensure that implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses and voluntary groups across Ireland.
55. Deputy Dara Calleary asked the Minister for Finance if advice will be provided for a person (details supplied) who incorrectly applied for the temporary wage subsidy scheme. [4871/21]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS), which is provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, operated from 26 March 2020 to 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020.
The scheme was introduced as an emergency measure to provide financial support to businesses that were severely impacted by the pandemic and enabled employees whose employers could no longer afford to pay wages receive subsidy payments. The scheme was not intended as a support to employers who employed people for childminding duties nor was it ever implied that it applied to them.
The TWSS operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully met the eligibility criteria for the scheme and to self-declare to Revenue that they correctly qualified. To assist employers in determining their eligibility, Revenue published very extensive guidance, which clearly set out the qualifying conditions, including the requirement that a minimum 25% decline in business turnover had occurred due to COVID-19 related restrictions.
The provision of childminding duties by an employee on behalf of their employer is not a business activity. A relevant business in the context of the TWSS generally includes manufacturing, buying, selling or supplying goods or services with a view to making a profit, none of which can be associated with employing a childminder. It is also not possible for a person who employs a childminder to meet the ‘25% turnover’ eligibility test as there is no turnover associated with engaging a childminder.
Where an employer incorrectly availed of the TWSS, then Revenue must seek full repayment of the payments made. In doing so, Revenue has assured me that it will work with employers to resolve any repayment difficulties to the greatest extent possible, providing there is meaningful engagement in concluding the matter.
Finally, any decision on a childminder’s eligibility for the Pandemic Unemployment Payment is a matter for the Minister for Social Protection and her Department.
Question No. 56 answered with Question No. 37.
57. Deputy Cian O'Callaghan asked the Minister for Finance the corporate tax implications of the liquidation of a company (details supplied); and if he will make a statement on the matter. [4915/21]
Amharc ar fhreagraAs the Deputy is aware, the tax affairs of identified individual taxpayers, including companies, cannot be disclosed due to the obligation to protect taxpayer confidentiality as provided for by section 851A of the Taxes Consolidation Act, 1997. It is an offence for a Revenue official to directly or indirectly disclose taxpayer information to third parties, including the Minister for Finance, unless this is specifically provided for in legislation. Therefore, neither Revenue nor I can comment on the tax affairs of any individual or company. However, I can assure the House that Ireland has a transparent tax code which is clearly set out in legislation.
Revenue advises me that a company in liquidation has ceased to be the beneficial owner of its own assets or liabilities. The liquidator holds the assets for the purpose of distributing them (or whatever remains of them) to the ultimate beneficial owners. Acts of the liquidator are deemed to be the acts of the company and transactions between the liquidator and the company are ignored. Any distributions of assets by the liquidator in the course of the winding up are subject to capital gains tax.
The appointment of a liquidator does not necessarily mean the cessation of a trade, although a cessation of trading will often occur at that point. Whether or not the trade has ceased is a matter of fact. If the trade has ceased, the general cessation rules apply. If the trade has not ceased, the company remains chargeable to corporation tax on its profits. Also, to the extent that any trading losses arise in the final 12 months prior to the cessation of the trade, they may be set-off against any trading profits arising from that trade in the three years prior to that 12 month period.
58. Deputy Cian O'Callaghan asked the Minister for Finance the changes that will be made to the tax law in view of the Tax Commission’s decision in a case (details supplied); the way in which Ireland's approach to such cases differs to that of the UK; and if he will make a statement on the matter. [4916/21]
Amharc ar fhreagraI am advised by Revenue that, as the Deputy has named a specific person in the details supplied, the provision of information to me for the purposes of replying to this question would implicitly involve the disclosure of confidential taxpayer information. Revenue is statutorily precluded from disclosing such information by section 851A Taxes Consolidation Act 1997.
The Tax Appeals Commission (TAC), an appellate body independent of Revenue, is also bound by confidentiality legislation when dealing with appeals against Revenue decisions. Appellants (taxpayers) have the right to confidentiality in relation to their appeals. Section 949AO Taxes Consolidation Act 1997 obliges the TAC to publish its determinations of appeal cases in a way that, in so far as it is possible, does not reveal the identity of any person whose affairs were dealt with on a confidential basis during the appeal proceedings.
I am also advised by Revenue that TAC determinations made against Revenue involving points of tax law are carefully considered by Revenue with a view to deciding, inter alia, whether a change in the law, or in Revenue’s application of the law, is warranted, or whether the TAC determination should be appealed to the High Court.
59. Deputy Cian O'Callaghan asked the Minister for Finance the impact of EU Directive 2008/7 on Irish law; and if he will make a statement on the matter. [4917/21]
Amharc ar fhreagraI am advised by Revenue that Council Directive 2008/7/EC (Capital Duties Directive) of 12 February 2008 regulates the levying of indirect taxes on the raising of capital by certain companies. In this regard, it prohibits the levying of indirect taxes on contributions of capital to capital companies, certain restructuring operations involving capital companies and the issue of certain securities. Irish tax law must be compatible with the terms of this Directive.
Before the Capital Duties Directive came into effect, a stamp duty called companies capital duty (CCD) was levied on the raising of capital by the issue of shares in a capital company and on certain other transactions such as restructuring arrangements. The most usual type of corporate body within the charge to CCD was a limited company incorporated in Ireland. The most common transactions which gave rise to a charge to CCD were the formation of a capital company, an increase in the issued share capital of a capital company and the transfer to Ireland of either the effective centre of management or the registered office of a capital company. However, as CCD was incompatible with EU rules, it was abolished with effect from 7 December 2005.
The issue of whether current Irish tax law is compatible with the Capital Duties Directive has recently arisen in relation to a change in Irish tax legislation taking effect on 9 October 2019, the provisions of which are now contained in section 31D Stamp Duties Consolidation Act (SDCA) 1999. Under section 31D, a stamp duty charge is levied where there is an agreement to acquire a company using a Court-approved scheme of arrangement in accordance with the Companies Act 2014 involving the cancellation of the company’s shares and the issue of new shares to the person acquiring the company. This type of arrangement was not previously subject to stamp duty as it did not involve an actual transfer of shares to the person acquiring the company even though the net effect was to transfer ownership of the company. In stamp duty terms, there is no transfer or conveyance on sale on which to impose a charge. This new charge recognises the substance of these types of arrangement (known as cancellation schemes of arrangement) and imposes the stamp duty charge of 1% that, in the normal course, applies to transfers of shares. Stamp duty is now charged on the consideration paid to shareholders for the cancellation of their shares.
I introduced this new stamp duty charge because I considered that it would be compatible with the Capital Duties Directive as the duty is not being charged on the new issue of shares. Nor did I consider ‘cancellation schemes of arrangement’ to be the type of restructuring operation that is targeted by the Directive. However, this issue of compatibility was recently considered in an appeal to the Tax Appeals Commission (TAC) against a Revenue assessment to stamp duty. The determination made by the TAC on 8 December 2020 found in favour of the appellant (taxpayer).
I am advised by Revenue that it does not agree with the TAC determination and is currently in the process of appealing this determination to the High Court. It intends to await the High Court judgement before deciding on how best to proceed in relation to the status of section 31D SDCA 1999 vis-à-vis the Capital Duties Directive.
60. Deputy Brendan Griffin asked the Minister for Finance if additional financial supports will be put in place for Irish pilots (details supplied); and if he will make a statement on the matter. [4925/21]
Amharc ar fhreagraI am aware of concerns that have been raised regarding the pace of recovery for the aviation sector, and that it has been suggested that the level of support be increased and/or that the application of some of the new State supports should be delineated on the basis of explicit sectoral qualification criteria. However, 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 objective of the Employment Wage Subsidy Scheme (EWSS) is to support all employment and maintain the link between the employer and employee insofar as is possible. The Employment Wage Subsidy Scheme (EWSS) has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. To date, subsidy payments of over €1.5 billion have been made and PRSI relief worth over €270m granted to over 41,600 employers in respect of over 467,000 employees.
I have been clear that there will be no cliff-edge to the EWSS. It is noted that the legislation implementing the measure provides that it will be in place until 31 March 2021, but also provides that the scheme may be extended until the end of June 2021 if required and subject to certain procedural conditions.
It is likely that continued support will be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible. Decisions on the form of such support will take account of emerging circumstances and economic conditions as they become clearer.
In the meantime I am satisfied that the design of the Employment Wage Subsidy Scheme (EWSS) fully takes account of the changing environment around living with the COVID-19 pandemic, in line with Resilience and Recovery 2020-2021: Plan for Living with COVID-19.
For those businesses who may need additional support at this time, I would draw attention to the comprehensive package of other business and employer supports that have been made available since the July Stimulus Plan and Budget 2021 - including the Covid Restriction Support Scheme (CRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
Regarding the offering of further mortgage payment breaks, I would draw the Deputy's attention to the fact that the Central Bank has confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers, providing they are appropriate for the individual borrower circumstance. The BPFI has also reiterated in recent days that standard payment breaks continue to be part of the wide range of tailored solutions which are being made available to customers upon assessment of their situation.
Borrowers have a suite of regulatory protections, such as the Central Bank's Code of Conduct on Mortgage Arrears and the Consumer Protection Code, and lenders have specific obligations to support and work with borrowers who are continuing to experience loan difficulty because of COVID-19. The options could include additional flexibility, and this could be a short term arrangement such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements.
Through ongoing engagement with the BPFI and lenders, the Central Bank is working to ensure that borrowers affected by COVID-19 continue to be supported through this period of unprecedented stress. The Central Bank recently wrote to all lenders indicating that lenders are to ensure that they have sufficient expert resources to assess individual borrower circumstances, and to offer appropriate and sustainable solutions to affected borrowers in a timely manner in line with regulatory requirements and Central Bank expectations.
I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection and other applicable frameworks will be fully available to all borrowers that will still need support.
Questions in relation to the Pandemic Unemployment Payment are a matter for my colleague, the Minister for Social Protection.
