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

I appreciate the comments from both Senators about the EWSS. It is a scheme that has generated many comments and queries but, overall, people recognise how important it has been to maintaining businesses and, especially, the link between employer and employee during this pandemic period. While people have had regular issues regarding specific amounts, dates, details, conditions, eligibility of businesses, who was eligible and who was not, tax and how the rates were set, everybody who discusses the EWSS acknowledges the tremendous support it has been during the pandemic period. To date, €3.872 billion has been paid out on this scheme. It is one of the most effective and business-focused schemes in retaining the link between employees and their employers. As we come out of the Covid situation, it will allow a very easy, smooth transition for employers compared to that for people who are on the PUP and are not on an employer's payroll anymore, but will have to come back onto that payroll. This is a much simpler system for many employees and employers.

As I said, €3.872 billion has been paid out so far since July of last year. Some €672 million has been foregone in PRSI as part of this scheme. The total number of employers who have benefited from or been involved in this scheme is 50,500 and the number of employees who have been through this scheme is 609,700. Not only do I wish to compliment the employers and employees for moving onto this scheme, but I would also like to extend a major thanks to the Revenue Commissioners. I acknowledge their role in this matter because the last time I discussed it in the Houses, people talked about the timescale between an employer making the payment to his employees and getting recoupment from the Revenue Commissioners. The issue of employees who are paid by the week was raised on several occasions, as it could be two weeks into the following month, six or eight weeks later, before they got their recoupment from the Revenue Commissioners. All those things have been substantially speeded up and the turnaround from the Revenue Commissioners can be counted in hours, possibly 24 or 48 hours, rather than days or weeks. The Revenue system has been well capable of doing this.

I will highlight one figure to give an example. In January of this year, which was the peak month for the number of employees on this system, 346,900 people were on the EWSS. Thankfully, the numbers are down. At the end of June last year, the number was 342,000. This shows that the economy is gradually opening up. People are getting back to work and employers are getting back to a level of turnover. The requirements to qualify for the EWSS are no longer there for some employees. People are back on the books paying their tax and employers are back in business. There is still quite a distance to go when 342,000 people were on this scheme last month. That represents 34,000 employers, which is down from approximately 37,000 employers last January.Several thousand employers have been able to leave the scheme because their businesses opened up and the employees involved have also left. The big issue we are talking about is whether there will be a cliff edge on the scheme. I take on board what everybody has said. The message the Government has given out from day one is that there will be no cliff edge. Times are tough enough and people experienced a cliff edge at the introduction of Covid. They were used to a full-time pay packet every month and even those who went on to PUP had, in many cases, a significant reduction in net income into the household, which made matters more difficult. There were issues with the EWSS. People may have been on less income.

Many employers have fulfilled their commitments. People will want to watch their taxation situation on the EWSS and make sure their tax credits and everything are appropriate as the year goes on. We have been clear all along regarding every scheme the Government has introduced and there will be no cliff edge in the EWSS. On 1 June, the Government approved an extension of the scheme until the end of December. That is essentially what is in front of us here but it is not the full story. The amendments provided in this legislation will give legal effect to that decision. We have had this matter right through Covid. The Government would announce the introduction of a scheme with the effective date and the legislation comes to pass to confirm that in due course. Some people said we have often used this as a measure to backdate schemes or otherwise that people had an issue with but it is the only way to operate during Covid. The Government announces the date from which the scheme will be effective and it often takes weeks for the legislation to follow.

The legislation before us amends the scheme and provides that it can be extended beyond the date of December 2021 by ministerial order, but not later than 30 June 2022, should that be determined necessary and appropriate having regard to the underlying economic circumstances. It is considered too early to make any firm decisions regarding the operation of the EWSS post December 2021. Therefore, it is not feasible to determine what would be appropriate beyond that date. Does the scheme end on December 2021? The specifics in front of us do, but the legislation provides the scheme can be extended for a further six months subject to ministerial order. If that arises, there will be a debate on it, if it is deemed necessary and appropriate.

It is not just me saying there will be no cliff edge; this legislation specifically provides it can be run until the end of June next year. People may not have been aware of that aspect of this legislation. We concentrated on 31 December. The commitment is there that it can be extended for a further six months. Let us hope that is not necessary and appropriate. Let us hope Covid is behind us and that, when we get to next spring, the 300,000 people on EWSS have no need for such a scheme.

I hope that is helpful to some Members in discussing this valuable scheme, for which the taxpayer has paid €3.872 billion to date and under which €627 million in PRSI has been foregone. It is a practical scheme, which most people can operate effectively with the co-operation of the Revenue Commissioners, who provide instant refunds when employers submit documentation.