Marian Harkin (Sligo-Leitrim, Independent)
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130. To ask the Minister for Finance if workers employed by organisations funded by Pobal can avail of the temporary wage subsidy scheme; if not, the reason for the decision; and if he will make a statement on the matter. [11488/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed very quickly, having regard to the objective of getting financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.

The TWSS applies where the employer demonstrates to Revenue’s satisfaction that, by reason of Covid-19 and the resultant disruption to the conduct of business, commerce, there will occur in the period 14 March 2020 to 30 June 2020 at least a 25 per cent reduction either in the turnover of the employer’s business or in customer orders being received by the employer.  The 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 continued to operate and employ their workforce.

A key eligibility criterion for the scheme requires the employer must make a declaration which states that, based on reasonable projections, as a result of disruption to the business caused or to be caused by the Covid-19 pandemic, there will be a decline of at least 25% in the future turnover of, or customer orders for, the business for the duration of the pandemic and that as a result the employer cannot pay normal wages and outgoings fully but nonetheless wants to retain its employees on the payroll.  In the case of an employer that is funded by Pobal, the State funding of the employer must be taken into account for the purposes of determining the turnover of the business.  If that turnover meets the “the minimum 25% reduction test”, then the organisation qualifies for the scheme; if it doesn’t meet the 25% reduction test, it doesn’t qualify.