Dáil debates

Thursday, 16 July 2020

Ceisteanna Eile - Other Questions

Covid-19 Pandemic Supports

11:50 am

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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11. To ask the Minister for Finance the way in which he plans to ensure that profitable companies do not benefit from significant corporate welfare in the context of supports being made available in the July stimulus. [16314/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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My question relates to the upcoming July stimulus. In particular, how does the Minister intend to avoid giving large amounts of corporate welfare to profitable corporations? There are already profitable companies benefiting from the temporary wage subsidy scheme. One example is Aramark, which employs cleaners in Galway University Hospital. The company is benefiting from the temporary wage subsidy scheme and is paying its workers the minimum wage while getting paid the same amount as previously from the hospital. It is therefore getting money on the double. How will this and other corporate welfare be avoided in the July stimulus?

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I will not comment on the affairs of any one particular company because its tax affairs and profitability are matters relevant only to it. The key point in regard to what Deputy Paul Murphy has just said is the thousands of people such a company employs. My guiding principle in the development of the wage subsidy scheme and the work we are doing is to protect those jobs, the families who depend on them and the future existence of such companies so that they can continue to employ people. That is the purpose of the temporary wage subsidy scheme. The criteria for accessing the scheme reflect that.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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There are multiple companies in receipt of substantial State assistance in the form of the temporary wage subsidy scheme which are mistreating their workers. Dublin Airport Authority is attempting to lay off 1,000 workers and to replace them with agency staff. That is a State-owned company. Aer Lingus and Ryanair have also been attacking their workers. Does the Minister not agree that there needs to be basic conditions in the proposals for the July stimulus which would require companies availing of State supports not to undermine workers' wages and conditions? They could also require companies to be tax-resident in Ireland, which is to say, they would not be allowed to engage in massive tax avoidance. Such conditions could also require mandatory recognition of trade unions and access to trade union representation. These basic conditions should be met before companies are able to benefit from huge amounts of public money.

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The whole purpose of the wage subsidy plan and the changes we intend to make to it is to keep people in work. The other issues to which the Deputy has referred are best dealt with in other Government policy decisions. The purpose of the wage subsidy scheme is to keep people in work and to ensure they have a job in the future. More than 400,000 of our citizens have kept their jobs and have a good chance of being able to keep them in the future because of this scheme. That is what it is doing. As important as these other matters are, Government has to deal with them in other ways.

If I was to remove the wage subsidy scheme and some of the companies to which the Deputy refers were then to stop employing people who are on the wage subsidy scheme, he would be accusing me in relation to that. It is my duty to put in place schemes on behalf of the Government that give the best chance possible for keeping people at work and allowing them a good chance to have their job in the future. That is what I and the Government will continue to do.

Written Answers are published on the Oireachtas website.