Seanad debates

Tuesday, 7 December 2021

Finance Bill 2021: Second Stage

 

10:30 am

Photo of Pat CaseyPat Casey (Fianna Fail) | Oireachtas source

I welcome the Minister of State. The Bill, the second Finance Bill of this historic coalition Government, aims to give the people value for the money they pay in taxes by investing wisely in public services such as health and education and to invest strategically in the needs of our people, particularly in the area of housing. Moreover, the Government has agreed a climate budget required to make a meaningful contribution to the global problem of climate change. As if achieving these tasks was not serious enough, we have also to take into account the catastrophic effects of the Covid-19 pandemic on our society and economy. The value of our front-line workers in the health service and those in essential economic services such as food production has been brought home as never before. The people have risen to this challenge with a remarkable solidarity and that solidarity must be reflected in Government policy. That is exactly what the Bill, which backs up budget 2022, does.

Fianna Fáil in government has to deal with the reality of the ability of the economy to provide the taxation income that drives our investment policies while ensuring our economy will remain attractive for economic growth and business opportunities. The guiding principle of Fianna Fáil has always been and remains the common good of all Irish people. Childcare supports, an increase in fuel allowance, social protection payments and pensions are proof Fianna Fáil and the Government are delivering for all our people and not just promising fairy-tale stories that have no basis in reality. The increase in the income tax band will give a tangible and progressive reward to all Irish workers and help those who are the backbone of our economy thanks to the ability of their work and their contribution to our tax base. We do not demonise any part of our great nation but rather value the contribution of all business workers, farmers and public servants. Housing, healthcare, climate change and the cost of living are all being heavily invested in through the Bill.

Unlike many others in this House or on the front line of Irish politics, I know what it takes to run a business in Ireland. I know the sacrifices a family-run business must make to create sustainable jobs, pay taxes and grow business from year to year. I have lived through several recessions and been involved in the tourism industry. I know better than most the shattering consequences of the economic shutdown caused by Covid-19 on the tourism and hospitality sector. I understand the Government's position that we must put public health first and foremost, and I acknowledge the supports the Government has provided for businesses up to now, without which my business would not be here today. Equally, we should not waste that investment but look at ways we can survive as we move into the future. The implications of the messaging in recent weeks and the announcement of Friday last relating to the hotel and accommodation sector concerned almost €250 million in advance bookings. Between December this year and February next year, 2.3 million bed nights or room sales will be dropped. That is significant for the industry and will have consequences.

One of the greatest supports the Government has provided to our industry and other industries is the employment wage subsidy scheme. I heard the Tánaiste speak just before I came to the House about a legal issue with sectorising that scheme. We must do everything possible to reinstate the EWSS for the hospitality sector, as well as sectors such as arts and entertainment that have been devastated by this. It is the single most important payment, and I say that because our greatest asset is our staff. The EWSS allows us to keep our teams together. We have suffered an incredible loss of staff out of our sector because of the inconsistent and unreliable nature of the business, owing to the continual closure and reopening or restrictions and lifting of restrictions, and they have moved to other sectors because of job insecurity. We are now trying to build again, and we were looking forward to this winter but again it has not happened. We are back, almost, to where we were last year.

I cannot stress enough how important and valuable the EWSS is. I ask whether a €350 payment is better as an EWSS payment or as a pandemic unemployment payment, PUP. Is it better to keep the person in employment or to let him or her go and receive the PUP? I think that, from everybody's point of view, remaining in a workplace and being part of a working team is much better for everybody. Between now and next week, whatever can be done to reinstate the EWSS has to be done. We in the House will sit next week to debate amendments to the Bill and we can table the required amendments to allow it to happen. It is the single most important support to businesses.

There is one anomaly that has to be addressed. Hotels that close on a seasonal basis will be taken off the EWSS because they will not make a claim in December and, therefore, will become new entrants in January, when the scheme will not be open to new entrants. They will try to build up their staff for the season but they will not qualify. It is an anomaly that has been recognised by Ministers but it needs to be addressed.

I acknowledge the work being done to try to make the Covid restrictions support scheme, a substitute for the EWSS but it never will be. It will not do so in the format that has been proposed. I acknowledge the requirement has fallen from a turnover of 50% to 30% to bring it in line with the EWSS and that there is an attempt to cap the payment at €10,000, but that will not be at the races for certain businesses within the hospitality sector. Another figure of €15,000 was mentioned in respect of CRSS, but that will not have the same reach as the EWSS. We in the House are available to make the appropriate amendments to the legislation to allow this to happen. Will the Minister of State convey to the Ministers for Finance and Public Expenditure and Reform that we are willing and able to make the necessary amendments to the legislation to allow the EWSS to be reinstated in full for the sector? Employment is booming and people are moving from our sectors to the other sectors, which is making it increasingly difficult to build our teams and keep them together.

I thank the Minister of State for budget 2022, which is a very balanced and fair budget. I urge him to do whatever he can about the challenges we face.The challenge is trying to keep our core asset, our staff. They are the key asset in our industry. They are more valuable to us as an industry than financial assets.

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