Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I am pleased to support the Finance (Covid-19 and Miscellaneous Provisions) Bill 2021, which will give effect to some of the decisions announced as part of the Government's economic recovery plan. This legislation will help to support our citizens and businesses during the next stage of our country's recovery.

Following public health advice and the risk posed by the Delta variant of Covid, particularly to those who are not yet fully vaccinated, the next phase of reopening will be based on a cautious approach. We are aware that this is a difficult decision for many sectors, particularly for so many businesses which had believed they would be able to reopen in early July.

As the country and economy have reopened slowly over the past few weeks, the demand for the PUP, EWSS and CRSS has declined sharply. Although the outlook for the next few weeks is not yet clear, the provisions of this Bill will provide certainty to businesses and allow them to plan ahead.

The EWSS has been a key component of the Government's response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. This scheme gives employers impacted by Covid-19 a subsidy per employee to help to keep them in employment.

The CRSS provides support for businesses that are forced to temporarily close or to operate at significantly reduced levels because of Covid-19 restrictions that either prohibit, or significantly restrict, customers of the business from accessing the premises in which the business is carried on.

The Government's commitment to supporting businesses is underlined by the decision earlier this week that additional support will be payable under the scheme to those businesses that have been asked to remain closed in line with public health advice. Such businesses may apply for a double payment for a period of two weeks, subject to the statutory maximum payment of €5,000 per week for the weeks from 5 July to 19 July.

The extension of the tax debt warehousing scheme will give clarity and certainty to businesses as to their tax liabilities for the remainder of 2021 and will help them with their cash flow as they seek to recover from the effects of the pandemic.

This Bill also introduces a new scheme, the business resumption support scheme, which will be a great support to businesses reopening and will be implemented in September. This scheme is being introduced for vulnerable but viable businesses, particularly in sectors that were significantly impacted throughout the pandemic, even during periods when restrictions were eased. Businesses whose turnover is reduced by 75% in the reference period, 1 September 2020 to 31 August 2021, compared with 2019 will be eligible. The scheme will not be restricted by location, rate-paying or physical premises. Businesses which previously availed of other schemes such as the small business assistance scheme for Covid and the tourism business continuity scheme, for example, as well as the Covid restrictions support scheme, will be eligible to apply for a once-off payment based on a percentage of their average weekly turnover for 2019, subject to a maximum payment of €15,000, provided they meet the qualifying criteria.

The business resumption support scheme is designed to support some of the worst affected businesses in the pandemic, especially for those businesses that continue to be significantly impacted even after the easing of public health restrictions. I am also pleased that charities and sporting bodies which did not qualify for the CRSS because of specific tax treatment will be included in this scheme. That it is innovative and good for communities.

I also welcome the extension of the 9% VAT rate, following its reduction from 13.5% in budget 2021, until August next year. This will be vital to businesses in the restaurant and catering services, guest and holiday accommodation, entertainment services such as admissions to cinemas, theatres, museums, fairgrounds, amusement parks and sporting facilities, and also services such as hairdressing and other personal services. These services in all our local towns and villages have had a difficult period and the extension of the reduced VAT rate until the end of the 2022 summer season allows for a longer period of recovery for that sector. I stress that that date is approximately one year from now and extending the reduced VAT of 9% rate for such a long period is an excellent commitment.

The Bill also puts the financial resolution of 19 May, which introduced a 10% stamp duty charge on multiple purchases of houses, on a permanent statutory footing' while providing for an exemption on stamp duty to the provision of the mortgage-to-rent scheme by private sector participants, which is an important part of the broader social and affordable housing agenda. The purpose of this section is to impose a higher stamp duty rate on the multiple purchase of residential units and the financial resolution allowed this to have immediate effect. It forms part of the Government’s response to the recent phenomenon of commercial institutional investors bulk purchasing homes at or near completion in competition with the owner-occupier market and first-time and family purchasers.

The Government has been very active in providing timely and targeted supports which have been vital to so many businesses in our economy. In the region of €7 billion has been spent under the three schemes being extended under this Bill, the CRSS, the EWSS and the debt warehousing to which I referred. I am delighted the Government has kept its promise that there will be no cliff edge to supports for businesses and is extending and enhancing supports to businesses as they reopen.

It is appropriate that we are extending the vital supports such as the CRSS, EWSS and debt warehousing. The new business resumption support scheme, which will be available in September, will provide additional support to the businesses worst affected by the pandemic restrictions. The new higher rate of stamp duty will help to discourage bulk purchasing of residential properties by commercial investors.

For these and many other reasons too numerous to mention in the seven minutes available to me, I support this legislation.

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