Seán Kyne (Fine Gael) | Oireachtas source

The temporary wage subsidy scheme, TWSS, was introduced by the previous Government as a badly-needed and welcome measure to support businesses and workers during the pandemic. It proved to be a lifeline for many businesses across the country and kept workforces together in order to be prepared to ramp up work and production once the crisis passed. Many businesses adapted their work practices and changed marketing strategies to survive. Some businesses in the craft and retail sector increased their presence online in order to survive and, for many, this has, thankfully, proven successful.

As we come to the end of the year, Revenue is now assessing these businesses in the context of the wage subsidy scheme and for some it is proving a sobering experience as their hard work and change of direction has meant that the 25% reduction in turnover necessary has been slightly missed and, as a result, Revenue is demanding the return of the scheme funding. My office has been contacted by one business whose trade has been devastated by the earlier lockdown. Their shop, selling high-end goods mostly to the tourist trade, was shut down and their craftspeople would all have been let go were it not for the TWSS. However, the couple in this case fought back, borrowed money to establish an impressive online presence and worked day and night to reposition their business. They paid VAT to Revenue even though they could have warehoused the debt because they felt that we were all in this together and wanted to pay their bills on time to the taxpayer.

After an extremely stressful and expensive year, when their business went through hard work and innovation but survived, imagine their shock at getting a demand from Revenue that the TWSS funding be repaid. That is €30,000 they do not have because their turnover dropped by close to 20%, not the 25% threshold. That is all in spite of the fact that Revenue stated initially that if the original self-assessment was reasonable, it would not seek to claw back the subsidy for the original period.

The couple fought tooth and nail to hold on to their business, pumping borrowed money into it, and are now being penalised for their hard work. I ask the Leader to ask the Minister for Finance to contact Revenue and in the spirit of the battle against Covid-19, urge it to be flexible in the manner in which TWSS recoupment is done. It should take into account the extraordinary efforts to which businesspeople went to keep their businesses open and trading and accept the fact that new trading practices and business innovation, which cost businesses a lot, were a part of the bigger picture in saving enterprises and jobs. It would be a cruel irony if repaying the support received was the final nail in the coffin for this business.