Dáil debates

Thursday, 16 April 2020

Health (Covid-19): Statements

 

9:15 pm

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

I thank the Deputy for his recognition of the work that was done on the wage subsidy scheme. I want to recognise the Irish Congress of Trade Unions, ICTU, and IBEC for the role they played in terms of putting forward ideas for how we can support our economy and, crucially, for explaining these schemes to their members. The role they have played in explaining these schemes has been critical for keeping people in work and I want to acknowledge that. They have raised particular issues, as have Members of this House, including Deputy Nash, and I am doing my best to respond to them.

I will now deal with each of the questions that Deputy Nash has put to me. First, he asked if I can compel companies to top up the wage subsidy. I cannot compel them to do so and would be wary of doing that because it is very possible that we could get to a point, with the consequences of Covid-19, where many companies are in no position to top up but I still want them in the scheme. I still want them operational in the future and putting in place a requirement for them to top-up might undermine their ability to be viable again, to return to growth and to return to employment quickly, which is what the Deputy and I want.

In terms of larger companies participating in the scheme, I read the interview that my French colleague gave regarding this issue. I take a different view on the role of this scheme and larger companies because such companies tend to employ a lot of people. There are many large employers who are now participating in this scheme. If they were not participating in this scheme, the live register could be in an even more difficult situation than it is now. It is my belief that if this scheme was not brought in, we would now have over 1 million citizens on the live register. That is why we need this scheme. I want to use this scheme as a bridge for getting those people who went onto the live register when the first round of public health guidance issued off the live register, back into a relationship with their employer and back working again as soon as our public health guidance permits it.

The force majeuredecision was made completely by the Revenue Commissioners. The context of the decision was not that they made a decision about designating Covid-19 force majeureto impact on any decision relating to the treatment of non-resident taxpayers. They made the decision to designate Covid-19 a force majeureevent. This had a whole set of tax consequences, one of which was the issue the Deputy is raising with me. I know that the Revenue Commissioners will ensure that this decision is fairly implemented and ensure that all pay their tax liabilities fairly.

Deputy Nash also asked about PRSI class J. It is the intention of the Government to ensure that anyone who is participating in the wage subsidy scheme does not have social insurance contributions adversely affected as a result of this. We are aware of the issue the Deputy is raising. We do not want to see such social insurance contributions interrupted. The Minister for Employment Affairs and Social Protection is looking at some legislative proposals relating to this particular point.

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