Written Answers Nos. 57-66
60. Deputy Jennifer Whitmore asked the Minister for Finance if a viability test will be applied to all childcare providers seeking Covid-19-related employment wage supports until the end of 2021; and if he will make a statement on the matter. [28455/21]
Amharc ar fhreagra338. Deputy Brendan Griffin asked the Minister for Finance if the employment wage subsidy scheme will continue to be made available to childcare providers without the income reduction requirements; and if he will make a statement on the matter. [30770/21]
Amharc ar fhreagraI propose to take Questions Nos. 60 and 338 together.
Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the operation of the Employment Wage Subsidy Scheme (EWSS), which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. It provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of employer PRSI of 0.5% on wages paid which are eligible for the subsidy payment.
While the criteria for eligibility for business in general is based on a reduction in turnover, as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in, or to take up, position of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with Section 58C of the Childcare Act 1991 are eligible for the EWSS.
The objective of scheme is to support all employment and maintain the link between the employer and employee insofar as is possible. The 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, payments of over €3.4 billion and PRSI credit of over €565 million have been granted to 49,800 employers in respect of 579,400 workers.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made on Tuesday 1st June, it has been decided that the scheme is now to be extended until the end of December 2021.
With the agreement by Government on the revised plan, COVID-19 Resilience and Recovery 2021: The Path Ahead, a cautious and measured approach will be taken as we lay the foundations for the full recovery of social life, public services and the economy. It is therefore appropriate that key business supports should remain in place until the end of December 2021.
As the revised plan is implemented, the EWSS will play an important role in getting people back to work as public health restrictions are eased, thereby reducing the numbers dependent on social welfare payments over time, including the Pandemic Unemployment Payment (PUP).
For Q3 2021, the Government has decided to broadly maintain the status quo for EWSS, including the enhanced rates of support, with a modification to widen eligibility, and maintaining the reduced rate of Employers’ PRSI of 0.5%. There are no changes in respect of the qualification criteria for EWSS eligibility for the childcare sector.
The Government has approved the extension of the EWSS for Q4 2021, however, it is considered too early as yet to prescribe the precise operational parameters of the scheme that should apply for that quarter. Decisions in that regard will be taken closer to the time, possibly around the end of August/early September, with the benefit of more up-to-date information on a number of variables, including the overall epidemiological situation, progress made in reopening all sectors of the economy, the vaccine efficacy, as well as the operation of the EWSS during the early parts of Q3. As such, no decisions have yet been taken on any changes to the scheme for Q4 2021.
It is important that, as the recovery gains further momentum, supports are further recalibrated in the longer-term interests of businesses that are in receipt of those supports and in the interests of the wider body of taxpayers. As such and as already signalled, for Q4, consideration will be given to a future change to EWSS which will require an employer contribution towards employee wages. This possible change is being signalled now to provide sufficient notice to businesses in respect of same. Such a move, if it were to be introduced, could have the effect of testing the viability of businesses to the extent that they would be required to make a contribution against the background of a reduced overall subsidy from the State under the EWSS. As with all firms that will benefit from the scheme in the months ahead, businesses in the childcare sector would be subject to the impact of this potential change.
Finally, for those businesses who may need additional support during this period, 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) which has been extended, the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme. I also announced on 1st June a new additional business support scheme (Business Resumption Support Scheme or BRSS) for businesses with reduced turnover as a result of public health restrictions to be implemented in September 2021.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
62. Deputy Éamon Ó Cuív asked the Minister for Finance the estimated net contribution Ireland will make to EU funds in 2021; and if he will make a statement on the matter. [31513/21]
Amharc ar fhreagraIreland’s contributions to the 2021-2027 Multiannual Financial Framework (MFF) are expected to rise over the coming period, from approximately €3.25 billion in 2021, to approximately €3.95 billion in 2027, an average of €3.6 billion per annum.
Data on Ireland’s EU Budget receipts are published annually, for the previous year, in my Department’s Budgetary Statistics each autumn – i.e. 2020 receipt data will be published in autumn 2021. Therefore, it is not yet possible to confirm Ireland’s net contribution to the EU Budget in 2021 or for the remainder of the 2021-2027 MFF. However, my Department estimates that our receipts from the 2021-2027 MFF will be in the region of approximately €2 billion each year.
Looking at EU Budget contributions in net terms fails to capture the wider benefits to Ireland of our membership of the European Union. For example, the European Commission has previously estimated the benefits to Ireland of the Single Market at over €30 billion and close to 10% of GNI. Although Ireland is a net contributor to the EU budget, many sectors of Irish society continue to benefit directly and indirectly from the breadth of EU programmes funded by the budget, including the Common Agricultural Policy, Regional Development, Horizon 2020, Erasmus and the PEACE Plus programme. The current MFF will also help support the member states and sectors most affected by Brexit through the Brexit Adjustment Reserve, from which Ireland is set to be a significant beneficiary.
63. Deputy Richard Boyd Barrett asked the Minister for Finance if it will be ensured that changes to the local property tax take into account the incomes of the homeowners in question; and if he will make a statement on the matter. [31408/21]
Amharc ar fhreagraThe 2012 inter-Departmental Group which considered the structures and modalities of a property tax recommended that liability to the Local Property Tax (LPT) should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.
At present, Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and where certain conditions under different categories including, 'Income Level', 'Hardship', 'Personal Insolvency' and also to 'Personal Representative of a Deceased Person' are met. In most cases the property must be the sole or main residence of the liable person. The current income thresholds are €15,000 for a single person and €25,000 for a married couple, civil partners or cohabiting couple. Deferral in respect of half of the local property tax payable is possible, where the gross income is above the threshold but less than €25,000 in the case of a single person and €35,000 in the case of a couple.
The deferred tax remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is charged on the deferred amount at a rate of 4% per annum and the duration of the relief normally coincides with the valuation period (1 May 2013 to 31 October 2021).
The General Scheme of the Finance (Local Property Tax) (Amendment) Bill 2021 which the Government recently approved provides that, from the next valuation date, the deferral thresholds will be increased to €18,000 for a single owner and €30,000 for a couple. As well as being recommended by the 2019 inter-Departmental Review of LPT this approach was endorsed by the Oireachtas Budgetary Oversight Committee in its September 2019 Scrutiny Report on the 2019 Review. In addition, the rate of interest charged on deferred LPT liabilities will be reduced from 4% to 3% annually.
Where a liable person does not qualify for, or does not wish to avail of, a deferral, they can avail of a wide range of flexible payment options Throughout the pandemic, Revenue has engaged extensively with individual taxpayers experiencing financial difficulties due to the pandemic to agree flexible arrangements that best suit their circumstances, including in respect of LPT liabilities and will continue to fully engage with taxpayers facing financial difficulties.
