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

I thank the Senators for discussing this important scheme. It is not subject to any recommendation, but it is a significant element of the legislation. On Second Stage on Tuesday, Senators Casey and Buttimer referred to the issue of warehousing tax. I did not have the figures with me then, so I will confirm now that the total amount of tax debts warehoused is €1.9 billion. As such, this has been a major scheme. These debts are mainly VAT and employer's PAYE. There is also €8 million in income tax debt. Approximately 70,000 businesses have availed of this tax debt warehousing. We all know that this debt has to be paid. It has not gone away, but businesses have shoved it down the line. As an aside, perhaps this is why the appetite for other schemes, for example, funds advanced by the Strategic Banking Corporation of Ireland, is not strong. People know they have large debts to pay. The €1.9 billion is a substantial figure and I undertook on Tuesday to provide the information to the House.I have provided that figure here.

The issue of the thresholds has been well aired. The level of restrictions in the country due to Covid is relevant because if goes below level 2, some restrictions are not available at all. The key issue is that this matter be kept under close review. I am not in a position to make any comment on extending VAT rate reductions. That matter is not deal with in this legislation. Regarding the important point about this scheme, section 11(e) states:

Without prejudice to the generality of paragraph (d), the Minister for Finance shall cause an assessment, at such intervals as he or she considers appropriate but no less frequently than every 3 months beginning on 13 October 2020, of the following, and any other relevant matters ...

This means the Minister has given a commitment in the legislation that because Covid, businesses and restrictions are so fluid and getting people back to earning a livelihood is such a priority, he will review the position every three months. This is effective from essentially budget day around 13 October so it is November, December and January. A report on this will be prepared in January and every three months as long as this situation continues to obtain. It will be very closely monitored and there will be an opportunity for Government and the Oireachtas to debate this on an ongoing basis. It is good that we will have a review so early in the new year and regularly afterwards as long as we are dealing with Covid. On that basis, I thank the Senators for their contributions on this section.