Dáil debates

Wednesday, 27 January 2021

Taxes Consolidation Act 1997 (Covid Restrictions Support Scheme) (Percentage Adjustment) Order 2021: Motion

 

2:20 pm

Photo of Gerald NashGerald Nash (Louth, Labour) | Oireachtas source

I thank the Minister for bringing this important resolution to the House. The CRSS has been an important lifeline for thousands of good, viable businesses across the country since it was introduced just a couple of months ago. The Minister will not mind me taking the time to pay tribute to the hard-working officials in the Revenue Commissioners, and in his Department in ensuring, at least in my experience, a practically glitch-free implementation of this very important scheme, and other crucial supports that he outlined earlier, including the TWSS, EWSS and other supports. The officials responsible for drafting such schemes are a great credit to our civil and public service, and represent the best traditions of that service.

On the resolution itself, it is good that a double week payment has been applied. That can also be applied to businesses which found themselves having to shut their doors on 31 December 2020. If I am correct, it is being applied to the likes of gyms and other businesses in the leisure sector. This is a very traumatic time for business owners and managers across the country, and indeed their staff. I hope that these important measures and supports will help to sustain businesses through a very difficult period and ensure they remain viable to the point where they can flourish when the conditions allow and our economy starts to grow again. The scheme will help, and has helped, on a day-to-day, week-to-week basis to provide supports to pay overheads that exist whether a business is in operation or not.

I note from Revenue information available on its very accessible website that, as of 21 January 2021, the total value of claims came in at €221.5 million, covering 19,500 premises. Almost one quarter of all premises involved provide personal services such as hairdressers and beauticians, and so on. The highest payout, if I can call it that, involves the pub trade. I guess that is not surprising. The average time it takes to turn an application around - from application to payment - is three days. That is impressive in anyone's language and needs to be acknowledged. In my home county of Louth, the total number of premises covered is 820, with the total value of claims amounting to just under €8 million.

Like other Deputies, I have raised issues with the Minister on the floor, particularly on Committee Stage of the Finance Bill 2020 in respect of the kinds of businesses that the CRSS does not cover. For example, businesses providing food and supplies to the hospitality sector might meet all criteria to qualify for the scheme in respect of a sufficient drop in turnover, but they are excluded because their premises are still open, albeit operating a skeleton service to support, for example, takeaway businesses. In addition, there are businesses with, for example, casual trading licences, or an on-course bookmaker's licence with a paid-for pitch, which will not qualify because they do not operate from what might be termed a "permanent" bricks and mortar premises. This is an anomaly in the scheme. I understand what the scheme is designed to do, but, nevertheless, it is an anomaly that I hope the Minister will consider addressing in some other way. He has indicated that the Tánaiste will be looking at other supports that might be more adaptable and targeted for specific kind of sectors. The Sinn Féin amendment deals with that to an extent. I raised the issue by way of amendment on Committee Stage of the Finance Bill 2020, just a few weeks ago, albeit the amendments were ruled out of order.

We know that the restrictions currently in place will remain so at least until 5 March 2021. For pubs and restaurants, the likelihood is that restrictions impacting on their businesses will remain for much longer. I have no doubt that the Departments of Finance and Public Expenditure and Reform have run some figures and done scenario planning in that regard and in respect of the extension of this scheme for a further few months. I welcome the Minister's commitment to extend, in effect, wage subsidy supports beyond the 31 March cut-off point. Does he plan to do the same with schemes such as this, and the CRSS in particular? Can he provide estimated costings if the scheme is to be extended beyond the cut-off date that was originally intended?

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