Ollie Crowe (Fianna Fail) | Oireachtas source

I welcome the Tánaiste to the House. I wish to welcome the comments from the Government in general that these new restrictions can be removed quickly if we gather more information and data on Omicron and it emerges that it is not as threatening as originally feared. The Tánaiste, in his contribution, set that out.

We are all aware that the hospitality and live entertainment sectors have been hit harder than most throughout the pandemic. Unfortunately, that continues with the introduction of further restrictions today. Even prior to the restrictions being introduced, the public health messaging was having a severe impact on the sectors. I am sure all Members have been made aware by local business owners of how many events and Christmas parties have been cancelled and the general reluctance among people to go out and socialise. This is traditionally the busiest period of the year for businesses in the hospitality sector. It is this month that allows businesses to survive the quiet January and February period when very little happens. What is most important now is that effective supports are implemented as the sector seeks to get through this. As has been outlined, the Covid recovery support scheme, CRSS, currently requires a 50% fall in the income from 2019 levels for businesses to be eligible. This leaves the vast majority of businesses incapable of claiming support at a time when they desperately need to do so. For example, the owners of the Pilot Bar and restaurant in County Sligo stated yesterday that their income is down 40% compared with 2019 levels. With the changes to the employment wage subsidy scheme, EWSS, their wage bill now makes up 58% of turnover. Naturally, anyone who has ever run a business knows that a wage bill of 58% of turnover is not sustainable. The situation is not good.

I say to the Tánaiste that the situation of the owners of that business is not unique. There are businesses up and down the country that are operating under similar pressures and facing uncertain futures due to the crisis that are not of their own making. If we want these businesses to survive and if we want to offer them the chance they deserve to rebuild, we must provide them with the supports to do so. When the decision was made to reduce the EWSS at the specific point in time last week, it was done on the assumption that there would be no restrictions in place. Unfortunately, the situation has altered since then and there are restrictions in place now. I think there is a broad understanding of the need for the Government to respond appropriately to changes during the pandemic, but when that is done, we must counter restrictions by providing supports for businesses that are impacted. The Government has stated that it will provide specific support measures for impacted sectors. In that respect, the criteria for the CRSS should be reduced. We must allow more businesses to claim support. The current criteria, which requires a 50% reduction in income from 2019 levels, should be altered to 25%. This would allow a greater number of businesses to claim the support they require. One aspect that has not received much attention, or perhaps as much as it deserves, is the impact the pandemic has had on the loss of experienced staff, again particularly in terms of the hospitality and live events sector. Certainly in Galway city and county, a very large number of businesses have told me how many experienced and knowledgeable staff they have lost since March 2020. This is understandable because staff want certainty in employment. I put it to the Tánaiste that more than 250,000 people are working in the hospitality sector, as he is well aware.

I have also raised the mortgage issue with the Minister for Public Expenditure and Reform, Deputy Michael McGrath. There is an issue when it comes to couples drawing down mortgages if one of them is an employee working in the hospitality sector and if that business is receiving the wage subsidy scheme. This causes significant concern for people applying for a mortgage to try to get onto the ladder for the first time. We need to look at this.

People may not want to work for business where, due to external events, they may have to reduce their hours at short notice. In this context, I am referring to chefs, managers and front of house staff. Employees who are essential to the business are not easily replaced. During a pandemic these skilled and capable people are being offered greater certainty in other industries and, understandably, they are moving to those sectors. In Galway city, the medical device industry is employing a huge number of staff. While this is welcome, it is leaving the hospitality sector really struggling for chefs, managers, and front of house staff. There is an issue there and we need to take it on board. When such staff leave, these businesses are losing years of experience and know-how, and any new employee, no matter how capable, simply cannot replace this. It is not an issue for today or tomorrow but it has a long-term impact on the businesses. I suggest to the Tánaiste that we would look at a long-term task force for the sustainability of the hospitality sector. In Galway city, the hotels, restaurants and bars are under enormous pressure.

Members will be aware that at the start of 2021 the Government launched two free programmes that aimed to upskill employees in the hospitality sector. This was welcome and needed, but it needs to be expanded with a broader range of courses to provide employees across the hospitality and live events sector the opportunity to upskill and learn.

Again, as with other Members of the House, I welcome the reintroduction of the pandemic unemployment payment, PUP. I am aware from those I meet every day that nobody wants to go back on this payment again, but it is a welcome step given the introduction of the restrictions. Those who must go onto the payment obviously are doing so at the worst time of year with Christmas just a few weeks away. It is positive the Government has restored the full rate.

I note those places with live entertainment events planned over the next month are in a very difficult position. The sector was just beginning to get back on its feet after an extraordinarily difficult 18 months. As with the hospitality sector, the Christmas period is also the busiest for them throughout the year. I have been contacted by the organisers of shows, concerts and pantos who advise us they have already fully sold out many shows over the Christmas period. They have stated it is not economically viable for them to do shows at half capacity as they would be losing money. The announcement of an additional €25 million is very welcome for this sector. It certainly shows the Government's support.

I have a couple of brief questions for the Tánaiste on the wage subsidy scheme. As a person who operates a business, I am not fully clear about the reduction of 40% from €350 down to €203. I do not understand why it is not sector specific. I believe it defeats the logic of trying to keep people within the sector who have the skill set required and to link the employee to the employer. Can this be looked at again? It would help people to remain in the industry and it would also help people not to go onto the pandemic unemployment payment.

I referred to the problems around mortgage applications. It is relevant because young couples have contacted me where one of the partners is working in the sector. The couple certainly have the ability to get the mortgage, but over the past 18 months it has become an issue. For how much longer will this go on?

I would also ask for a response on the task force to look at the long-term viability of the hospitality sector.