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

A hospitality task force was mentioned. Everybody knows that will be a matter for the relevant Minister and it is not something which I am in a position to get into today. Senator Higgins mentioned changing the qualifying period. Section 2(1)(a) states, " ‘qualifying period’ means the period commencing on 1 July 2020 and expiring on 31 December 2021 or on such later day than 31 December 2021 as the Minister may specify in an order made by him or her under subsection (21)(a);”. Subsection 21, on page 5 of the Bill, states, "by the substitution of “30 June 2022” for “30 June 2021”,". The legislation has specified the possibility that it can be extended by ministerial order and the exact date referred to is in the legislation. It is important because this is one of the biggest items. There is about €4 billion of taxpayers' money involved. It is one of the biggest supports for business. People have asked that advance opportunity be given. In recognition of what has been said in the House, there is not an endless cost. The Government will run a deficit as appropriate but will not spend when it is not appropriate to do so.

There are other amendments to this section that need to be addressed so that people understand. The Bill provides for a modification of the conditionality of entry to the scheme. There is a turnover test to qualify which requires that employers compare current operations with business operations pre-pandemic in 2019. It is proposed to maintain the turnover threshold to avail of the employment wage subsidy scheme from 1 July, which was last week, at a 30% decrease and to broaden the reference period from six months to a full year so turnover in the full year of 2021 is compared with the full year of 2019, with appropriate arrangements for qualifying businesses which may not have been in operation for all of 2019. There is a change in the reference period and it is important that employers know that. With many businesses fully closed or severely limited in their capacity to trade due to the public health restrictions in the first half of 2021, this change to the reference period acknowledges the frail nature of firms in certain sectors. Operating a full-year reference period will enable as many employers as possible to continue to avail of the employment wage subsidy scheme as the economy continues to reopen businesses and begins to recover from Covid-19.

The Government has approved an extension to quarter 4 and the Bill gives effect to this. It is considered too early to prescribe the precise operational parameters of the scheme that should apply for that quarter. It is important that businesses are aware of this because they need an opportunity to know what is coming down the tracks. This legislation recognises that the Minister for Finance has a duty to have regular assessments to determine whether it is necessary to adjust the level of certain elements of the employment wage subsidy scheme, having consulted with the Minister for Social Protection and the Minister for Public Expenditure and Reform. This assessment will consider the date of the scheme, the rates of the subsidy, applicable income thresholds for employees and the turnover test. Decisions on the matter will be made shortly.

I note that the economy continues to reopen. The capacity of businesses also increases so they can increasingly rely on their own resources to cover wages of employees beyond what is covered by the employment wage subsidy scheme. The Minister will consider a change to the scheme from quarter 1, which may require an employer contribution towards employees' wages. I am signalling this possible change in good time to provide sufficient notice for businesses. It is being considered that employers may have to make a contribution to employees' wages. The taxpayer has already paid €4.5 billion under this scheme. Every employer needs to hear me saying this. The rest is important but this will impact employers in September. No details have been worked out and the issue will be examined, but employers should be on notice that the matter is being looked at. It would be remiss of me not to refer to that when addressing this section.