Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

The Bill is a proportionate response to the situation companies and workers find themselves in during the Covid pandemic. We have had no pre-legislative scrutiny, but there has been widespread consultation. In that context, as a Parliament, we have to act quickly.

The provisions in the Bill allow companies to hold their AGMs electronically in a suitable venue. The Bill also allows for an extension of the time period for the presentation of a report by an examiner to the High Court to 150 days. This is important because it will give companies the opportunity to restructure. Workers will not have to get High Court approval before enforcing employment rights complaints when a company is being wound up. Depending on the context, the figures involved before a statutory demand can be issued will increase from €10,000 or €20,000 to €50,000. In that context and in the context of fairness and efficiency, I support the Bill.

While these provisions are important, they form part of a bigger picture of supports for workers and businesses. During a debate with the Minister for Finance yesterday, I spoke of my extreme disappointment that the VAT rate for the tourism and hospitality sector had not been reduced from 13.5% to 9%. This decision will have a significant negative impact on tourism and hospitality throughout the country, in particular in Border regions.

I again ask the Government to consider the fact that there is a 5% VAT rate in Northern Ireland for the tourism and hospitality sector, while the rate is 13.5% across the Border. Many businesses will find themselves having to use the provisions in the Bill when that might not have been the case had the VAT rate been reduced. It would be far better if businesses did not have to use the provisions in the Bill in the first place. One way to help to protect the tourism and hospitality sector across the country, and especially in the Border and north-west region - the Minister of State comes from the area - would be to reduce the VAT rate. We should not charge 8.5% more VAT on tourism and hospitality services than operators north of the Border.

I want to discuss support for companies. The restart grant was brought to my attention after yesterday's debate. It will increase from €10,000 to €25,000, and the minimum payment has increased from €2,000 to €4,000. Many businesses are happy about that. However, the Bill states that turnover has to be less than €100,000 per employee. That will leave a lot of businesses out in the cold. Some businesses, by their nature, have a high level of turnover. A garage could employ somebody who sells four cars worth €25,000 each in one year, which would put it over the €100,000 threshold. That does not make much sense to me. Not every business has that level of turnover, but many do. Take, for example, a drapery business in a regional town. If its employees sold six suits at €350 each per week, the income of the business would exceed the threshold of €100,000.

2 o’clock

The Government needs to look at this again. We also have the issue that if, for instance, a business has a profit margin of 15%, which is quite generous for some businesses, that would mean on a turnover of €100,000, the profit would be €15,000. One could not employ somebody for €15,000, even if one pays them minimum wage, by the time one has paid PRSI, etc. Somebody did a bit of multiplication and division here but did not actually work out how this would impact businesses on the ground.

A Leas-Cheann Comhairle, am I sharing this time?

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