Oireachtas Joint and Select Committees

Thursday, 1 October 2020

Committee on Budgetary Oversight

Pre-budget Engagement: Minister for Finance

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy for his opening statement and questions. I will make two points about his statement before dealing with each of his questions in turn. First, in regard to youth unemployment, I am of course keenly aware that it is younger workers and students who have suffered the most during this crisis. Those most affected have been young people starting out in work or those hoping to get a job. While I do not have the figures on youth unemployment to hand, I know they are available. If the committee cannot access them quickly, I can get them sent on. We know that the share of young people who are now unemployed because of the impact of this awful disease on our economy is very high. We must endeavour to make further progress in addressing that issue.

Second, in regard to the employment wage subsidy scheme, EWSS, and its predecessor, the temporary wage subsidy scheme, TWSS, I am very confident that the overwhelming majority of employers have used both schemes exactly in the way in which we intended. We can see that by the number of employers on the scheme and the number of employees who are now related to the scheme. As we move into a more mature phase of maintaining the subsidy - we have already given a commitment that it will go up to 31 March next year - issues that have always been very important to the Revenue Commissioners, such as compliance and how employers participate in the scheme, will absolutely continue to be things that we monitor and check. As I pointed out when I brought the legislation to the Dáil to launch the TWSS, the penalties and sanctions are very severe for any employer who uses the scheme differently from what is intended. It will be a really serious matter for any company if it turns out that the way in which it entered or used the scheme is not as the Dáil intended. The amount of money involved in the two schemes is huge and it is intended to look after citizens at a time of great risk.

I will now answer the four questions the Deputy put to me. The first related to IFAC's pre-budget submission. In fairness to IFAC, it has always made the case for having the right budgetary policy in place to reflect what is happening in our economy and with our people at any given time.

IFAC has been broadly supportive of the first phase of supports we introduced and has given us some thoughts for the second and third phases. Those advices are being examined.

The Deputy also spoke about weather and outdoor dining. Much of the advice that is issued is in the hands of the Department of Health and the National Public Health Emergency Team, NPHET. It is worth noting that at level 3, as members will know, some outdoor dining is allowed. I am only too aware of the fact that different local authorities are doing this differently. Some are doing it better than others. I ask all local authorities to use all the flexibility they have to support cafés and restaurants, for which this has been such a tough time, in facilitating dining outside of premises.

Before I make my point about office living and our city centres, I want to give the context that our pre-eminent concern, and the concern of anybody who debates and discusses this issue, is to defeat this disease, keep people safe and keep workers safe. To repeat what I said in the Dáil earlier in the week, I think we gravely underestimate the impact on our citizens of people not being able to go into work. We can view it purely in terms of the indirect effects that office working has on restaurants, cafés and how the city centre looks. The Deputy was beginning to go into that territory in the points he was going to make to me. Equally, having workplaces functioning is at the heart of how we develop skills. It is important from a well-being point of view that there is a workplace to which those who can do so safely can go. That well-being is at the heart of how we develop skills. This is a skills-based economy.

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