Dáil debates

Tuesday, 30 June 2020

Estimates for Public Services 2020 - Vote 32 - Business, Enterprise and Innovation (Revised)

 

2:20 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Deputy and I appreciate that every business is different. In speaking about them in the way we are, we are very much generalising. I would not use the term "reasonable". I would say it is regrettable if any company has to reduce the pay of staff. It should only do so if it genuinely has to and we both agree on that. Certainly it is preferable to see reductions in pay rather than having people laid off altogether and I believe the Deputy would agree with this also. Earlier, the Deputy suggested that companies should wait until they become unviable to do this. I do not think this is the right approach because if they wait until they are unviable they may end up having to lay off all of their staff rather than seeking reductions in pay, which could be restored next year if they get through this difficult period.

I am advised by my officials that of the companies receiving the wage subsidy scheme, 88% of them are topping up the wages of their employees. That is an important fact to get on the record. Back in March that figure was only 58%. These are companies that are in serious trouble and have had a big hit to their revenues. They are taking the wage subsidy scheme, which is why they qualify for it, and close to 90% of them are topping up the money being paid out under the wage subsidy scheme.

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