Dáil debates

Wednesday, 9 March 2022

Finance (Covid-19 and Miscellaneous Provisions) Bill 2022: Second Stage

 

6:37 pm

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

I will comment on some of the issues raised by Deputies relating to the employment wage subsidy scheme, the pandemic special recognition payment and the emergency support schemes we had in place. I welcome the recognition by many Deputies that the support schemes played an invaluable role in protecting our economy as we grappled with the darkest moments of the pandemic. The employment wage subsidy scheme, the Covid restrictions support scheme and various other schemes such as the debt tax warehousing scheme, which will be in place across the coming years, have all protected and saved jobs during a period in which we were asking people not to go to work and asking employers to close because it was not safe for them to be open. We had a very high level of obligation to those employers and workers over this period and, as a Government, we fulfilled it. I acknowledge the constructive role that most Deputies played in this regard by supporting this legislation and seeking to improve it in different ways.

With regard to the debate this evening on the use of the employment wage subsidy scheme and the fact that a small number of employers who were on the scheme paid dividends, I acknowledge that this is an issue of concern to the House. However, the vast majority of employers who were on the scheme did not pay dividends. As regards those who did pay dividends in that period, it is a sign of some of them beginning to be in profit but also being able to invest in their own future and being able to maintain and grow jobs across the period and in the years ahead, in which we face even fresher and new challenges.

A number of colleagues raised a point regarding the future of wage subsidy schemes. We have a group in place, which is part of the pathways to work strategy, in which we will examine whether there is the potential for new, short-time work support programmes that will build on the lessons we have from the employment wage subsidy scheme and the temporary wage subsidy scheme. There is a working group under way in this regard.

Different points were made about the pandemic special recognition payment. I am advised by the Minister for Health that the Department of Health and the HSE are currently consulting with health sector trade unions. This consultation is part of the Department's and the HSE's objective to finalise the application of this measure fairly. Upon the conclusion of consultations with trade unions, full details of the application process will be published by the HSE.

It is intended that the payments will be instructed later this month.

Other issues have been raised regarding excise and fuel costs. I will leave that to the debate this evening. We will debate the proposals that have been brought forward by the Government. A number of Deputies, including Deputies Shortall and Shanahan, touched on the proposals on debt warehousing. I emphasise this is a scheme that will be in place for some businesses until 30 April 2023. That is some way away from where we are at present. I know Revenue will engage on a pragmatic basis with companies to agree a suitable phased payment plan for tax liabilities. I know it will be flexible and will recognise the value of those employers.

As I said in my introduction, I hope this is the last piece of legislation that will refer to the consequences of the Covid-19 pandemic. It puts in place many of the provisions we need to conclude schemes that played a very valuable role in supporting jobs and employers during the pandemic. I thank Deputies who have recognised the work of the officials and the Revenue Commissioners in acting with great speed in implementing large programmes. I commend the Bill to the House.

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