Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 59:

In page 26, to delete lines 18 to 20 and substitute the following: “ “applicable period” means—

(a) the period of 12 weeks commencing on 26 March 2020, and

(b) such other period (if any) as may be specified by order under subsection (20);”.

My amendments, Nos. 59 and 68, are linked. In essence, those amendments provide that at the end of the 12-week period, the Minister would come back to the House and the House would make a decision on the continuation, amendment or otherwise of the wage subsidy scheme.

I also want to deal with the issue of section 26(2). This relates to the qualifying criteria for employers for the wage subsidy scheme. We all accept that it has to be workable. If it is not workable, the employers will lay off those employees, the employees will get €350 per week and that cannot be topped up by the employer. That is not where we want this to finish. We need much more detail and clarity on the question of how Revenue will assess the ability of employers to pay the wages of employees. Will Revenue just look at the cash resources the company has, for example? That company will have a range of other liabilities that will have to be met over a period of time. It could be that the business has enough resources on hand to pay six weeks, ten weeks or 12 weeks of wages. How exactly will this be assessed? Employers will not take the risk because the consequences for them of getting this wrong are potentially significant. Not only will they have to repay the money to Revenue, but there is also the potential application of interest and it is an offence to wrongly claim the wage subsidy scheme as an employer. Under the Taxes Consolidation Act 1997, an offence potentially means a fine and jail. Employers will not take a chance so that is why we need to have clear guidance on exactly how Revenue will assess the ability of companies to pay their employees' wages.

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