Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

89. To ask the Minister for Finance if his attention has been drawn to the fact that some employers in receipt of the wage subsidy scheme are making the employees continue to work full-time but for substantially reduced salary; if he will address this matter immediately; and if he will make a statement on the matter. [8274/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 is the legislation underpinning the Temporary Wage Subsidy Scheme (TWSS). The Government’s priority in so far as the TWSS is concerned was, and is, to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for, and start to receive, payment quickly. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once that is possible. Eligibility for the scheme can be satisfied by an employer once they meet the relevant criteria.

The TWSS scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020. There is no distinction made regarding the subsidy amount based on whether the business has closed for any defined period due to the restrictions brought in by the Government or has continued to trade with employees continuing to work full time or part time, with similar hours as before the Covid-19 pandemic.

The employer is expected to make best efforts to maintain the employee’s net income, reflected in the average net weekly payment for January and February 2020, for the duration of the TWSS. There is, however, no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but, for Revenue operational systems reasons, the employer will need to enter at least €0.01 in Gross Pay when running its payroll. If the employer makes an additional payment greater than the difference allowed by the scheme, then the subsidy value refundable to the employer will be reduced by this excess amount when the refund reconciliation is performed by Revenue in due course.

Revenue published detailed guidance on employer eligibility and supporting proofs for the TWSS and it is available on the Revenue website:

.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

90. To ask the Minister for Finance if he has checked or will check the number of companies that are registered offshore but are operating here that are in receipt of the wage subsidy scheme or other special Covid-19 financial supports; the number of companies in this category; the amount of public funds they are receiving in total and on average; his views on whether companies avoiding tax here by being registered offshore is acceptable; and if he will make a statement on the matter. [8275/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Temporary Wage Subsidy Scheme is only available to employers registered in Ireland whose business activities are adversely impacted by the COVID-19 pandemic and applies as regards employees who were on the employer’s Irish payroll at 29 February 2020. In relation to eligible companies who are registered as employers here, the scheme applies to companies resident for tax purposes in the State and also to non-resident companies that carry on a trade in the State through an Irish branch. I understand you are referring to the latter category, being companies that are not tax resident in the State but which are operating here through an Irish branch.

A non-resident company that carries on a trade in the State through an Irish branch is chargeable to, and cannot avoid, Irish corporation tax on trading profits and other income relating to the Irish branch. I am advised by the Revenue Commissioners that they are unable to provide aggregate information in relation to wage subsidy payments made to this category of employer – to companies that are not tax resident in the State but are trading here through an Irish branch. However, in due course, and in accordance with section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020, the names and addresses of all employers to whom a temporary wage subsidy has been paid by Revenue will be published on the Revenue website.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

91. To ask the Minister for Finance if in the interests of supporting a fair economic recovery, he will continue to provide full income supports to workers in sectors particularly hard hit by the impact of Covid-19 and the public health measures (details supplied); if he will establish specific tailor-made financial packages of support for these workers and sectors and urgently engage with these workers sectors in a suitable forum to discuss with them the way in which such supports can best be designed; and if he will make a statement on the matter. [8276/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In response to the Covid 19 Public Health emergency, the Government developed a suite of measures designed to support households and businesses that have been negatively impacted by the pandemic and the restrictions that were put in place as a result. These measures include temporary income support for individuals by way of the Pandemic Unemployment Payment (PUP) and the Temporary Wage Subsidy Scheme (TWSS).

As Minister for Finance, I have direct policy responsibility for the TWSS; the PUP is a matter for the Minister for Employment Affairs and Social Protection.

The legislation underpinning the TWSS is set out in Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. The legislation and the scheme itself were developed to support the Government objective of providing assistance to employers and employees that have been seriously affected by the pandemic.

The TWSS in its current form allows the concentration of resources to protect incomes, in a proportionate way having regard to available resources, employer contribution and the broader suite of COVID-19 related supports put in place by the Government.

The future of the TWSS remains under review and an announcement will be made in due course. I acknowledge that certain sectors will face particular challenges into the future as we gradually re-open our economy, and this is one of many factors that I take account of in my current deliberations.