Seanad debates

Thursday, 2 December 2021

An tOrd Gnó - Order of Business

 

10:30 am

Photo of Seán KyneSeán Kyne (Fine Gael) | Oireachtas source

I wish all Finnish people a happy national day next week. We all know businesses that have had Christmas parties and bookings for smaller gatherings and groups coming up to Christmas cancelled because of the increase in Covid cases and the current necessary health restrictions. The hospitality sector, above any sector, has faced tremendous challenges since the start of this pandemic.

I served in government when this pandemic started. We introduced the temporary wage subsidy scheme, which was replaced by the employment wage subsidy scheme in September last year. There are a number of terms and conditions for businesses that have and maintained a valid tax clearance certificate, and the subsidy is based on employee gross wages.I received an email this morning from a business owner which read as follows.

The bottom has fallen out of the hospitality sector here. With the panic of the new variant, we expect to see a significant drop in Christmas bookings and who knows what the new year will bring. There is a lot of fear out there. I am carrying eight staff at the moment. It is difficult to turn over enough to pay the wage bill, never mind make a surplus. You have to continue the employment wage subsidy scheme for hospitality at the November rates. I couldn't continue in the new year haemorrhaging money like we are now and for the next few weeks with the resurgence of the virus fear factor.

This is typical of the cases on which we have all received correspondence and phone calls. People are genuinely concerned about the Christmas period, which is traditionally a time of celebration when money is spent in the hospitality sector and one of the high points before the fall-off, as it were, in January and February.

The employment wage subsidy scheme, EWSS, has been important. The Government has provided a huge level of investment to support businesses throughout the pandemic in various forms, including the EWSS, the temporary wage subsidy scheme, TWSS, the Covid restrictions support scheme, CRSS, and the rates waiver. It has not been found wanting. However, having taken the decision in better times, when Covid cases were reduced and at a lower level, to cut the level of the EWSS, we now find restrictions being reintroduced and people cancelling bookings. Those in the hospitality sector are justifiably concerned. I know NPHET is meeting today and will be advising the Government, which in turn will make decisions on what it needs to do. It is incumbent on the Government to continue to support the hospitality sector, particularly to get businesses through the Christmas period, and to maintain the EWSS rates at the pre-November levels. I ask the Leader to engage and write to the Tánaiste to ensure that happens in the run-up to the Christmas period.

The hospitality sector is important throughout the country, both in urban and rural areas, and employs a large number of people. We know the importance of the tourism sector. If hospitality businesses, such as hotels and restaurants, do not survive the Christmas period and into the new year, they will not be here for future tourism seasons. I ask the Leader, on behalf of the House, to write to the Tánaiste on the issue.

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