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

If we look at the level of supports made available since July, it is an indication of the kind of policy measures likely to be needed for 2021. These measures included the wage subsidy scheme, the continuation of the pandemic unemployment payments until next year, although at a reduced level from where they were at the crisis, and the availability of restart grants. Do I believe we can keep those supports going indefinitely? The honest answer to that question is we cannot.

Can we keep them going for a long enough period to deal with the impact of Covid-19, however? I believe we can if we are willing to make choices regarding the level at which those policy interventions are made. The wage subsidy scheme is a good example. We made changes to the subsidy which was available in September, which gives me the confidence to say that we can extend the scheme up to 31 March in an unchanged format.

I am equally aware that when we get beyond 31 March, there will be things that will be needed after that. If we can build up a consensus regarding the reduction of subsidies, as our economy begins to reopen or stay open for longer, then I believe we will be able to continue to support our economy as we live with this disease and then contain and cure it. Integral to that is an acceptance, if not an agreement, of the need to change those level of subsidies and the frequency with which they are made available.

Is there deadweight in these supports? I have no doubt at all that in the coming weeks, months and years, many will argue there is deadweight in the interventions we have made and they should have been done differently or better at the time. Whatever deadweight is there, I am certain it is more than offset by the jobs and income that we protected at a time of enormous risk for Ireland. What we have saved far outweighs any deadweight effect that is there.