Dáil debates

Thursday, 22 April 2021

Covid Restrictions Support Scheme Regulations and Employment Wage Subsidy Scheme Regulations: Motions

 

5:15 pm

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

I thank Deputies for raising many issues with me relating to the WSS and the CRSS. I also want to acknowledge and thank the Minister of State, Deputy Fleming, for all of the work he is doing in the Department of Finance in dealing with many of the issues that have been raised by colleagues this afternoon.

I want to begin by answering a number of questions that were put to me in the course of this very important debate. Deputy Devlin put a number of questions to me on the operation of a number of our schemes. In particular, he posed questions regarding the operation of the credit guarantee scheme. He asked how many applications were submitted and the value of same. A total of 5,929 applications were submitted to our banks under that scheme, with a value of €410 million. To date, 4,170 applications have been approved, with a value of €254.8 million.

Another issue was put to me which I have become aware of in recent times relating to the interplay of the short-time work support payments and the operation of the EWSS. This is of particular concern to those who have been or are still working in our aviation sector. This matter was raised during the week with me. The operation of those jobseeker payments is a matter for the Minister for Social Protection, Deputy Humphreys. I will be raising the issue with her in order to understand it better and I look forward to being able to provide the House with a report on it if it is raised with me again.

On the sectoral issue that was raised by many Deputies, the Government made a choice, given the scale of the shock we were facing as a country, to respond by implementing broad, big schemes and that was the right choice. That choice has worked. It has saved livelihoods and jobs. That response was only possible because of the support we are receiving from the European Central Bank, ECB and because of the health of our public finances and our economy prior to this terrible pandemic.

If the Government had decided to respond with a multiplicity of different sectoral support schemes, we would have spent the last year debating comparisons between those schemes, asking why one scheme was different from the other, why that was the case and why there were differing levels of payment. In the meantime, as we consumed ourselves with those everlasting debates, we would have seen jobs lost, our economy suffer and employers go out of business and face even greater challenges than they already have. We did not want that to happen.

Instead, what we have done through the employment wage subsidy scheme is to protect employers, in all circumstances, whose businesses go below a certain level and through the Covid restrictions support scheme is to support businesses that are closed. These are strong, big, simple schemes which, due to the excellent work of the Revenue Commissioners, we can administer with speed, and which have worked.

When one puts in place schemes that are clear, there are, despite the best efforts of all, companies that will not be able to participate and employers that will not meet the qualifying criteria. To deal with that, the Government has rolled out an array of additional sectoral schemes to respond to those issues, from the Covid-19 business aid scheme, CBAS, implemented by the Tánaiste to various schemes implemented by the Minister, Deputy Catherine Martin. All of these schemes were designed with the objective of responding to the issues raised by Deputies in this debate today.

As the Government considers the supports needed for our economy in the latter part of the year, we will consider what the appropriate design is for those support schemes and what changes are merited in our employment wage subsidy scheme, the Covid restriction support scheme and the various sectoral schemes in place.

The tourism business continuity scheme was brought in, in particular, to deal with those businesses that do not have a fixed premises and do not qualify for the Covid restrictions supports scheme but still face significant cost and business difficulty. It is implemented by Fáilte Ireland and has a fund and value of up to €55 million, which is being deployed. It was brought in to deal with these issues and it is working. The CBAS scheme, which was brought in by the Tánaiste, provides additional payments to businesses that find themselves in this challenge.

The debt warehousing scheme was raised. I remind the House of the qualifying criteria for the scheme. The 12-month 0% period only starts two months after the businesses are allowed to reopen. Therefore, many businesses are still in the first phase of the liability warehousing scheme and, for many businesses, the deferred liability phase has not yet commenced, so the clarity of these schemes and their impact is demonstrated in how many jobs are, and how much income is, still being protected and saved.

In terms of the challenge we face with our aviation sector, I absolutely recognise the challenge the sector faces. It is why the Government, the Minister, Deputy Coveney, and the Minister, Deputy Donnelly, are working so closely together to ensure the schemes we have in place are proportionate. People have called for these schemes to be implemented and while it is completely understandable why there is a need for them from a public health point of view, of course, they also have huge consequences for those travelling in and out of our country and for those working in the sector.

The aviation sector has been a substantial participant in our employment wage subsidy scheme. The scheme has made a huge difference to those sectors. My colleague, Deputy Carey, spoke at length about the impact the employment wage subsidy scheme had on the aviation sector, which is particularly concentrated in his area.

The Minister, Deputy Ryan, made additional support schemes available for national and regional airports to support the sector. An extensive array of supports were brought in to support the aviation sector, but, of course, we are aware of the many issues and the need to get that sector open. However, no Government or no support scheme can take the place of normal revenue created by normal travel in and out of our country. The Government will continue to work to get the balance right between our public health imperative and how we can have access for an economy that depends so much on being open.

Deputy Collins raised the issue of bills and tax liabilities created by the operation of the temporary wage subsidy scheme. The Revenue Commissioners indicated there were many options regarding how that bill can be paid. I know that for many the arrival of this bill came at the end of a very difficult year but the temporary wage subsidy scheme was created in the most difficult of circumstances and at speed and the employment wage subsidy scheme deals with the issue of taxation at source. It has been raised by others who are concerned about it but the principle of income being taxable is one that is critical to stand by, even if the income is made available directly by the State, which is what happens in the wage subsidy scheme.

I thank the Deputies for their contributions and I commend both these motions to the House.

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