Bríd Smith (Dublin South Central, People Before Profit Alliance)
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42. To ask the Minister for Finance if he will be introducing criteria for companies that avail of the temporary wage subsidy scheme and other State supports during the Covid-19 crisis such as clawback mechanisms in the event of them returning to profit, a bar on bonuses and dividends and so on for CEOs or shareholders and tax compliance criteria including restrictions on companies availing of tax avoidance measures; and if he will make a statement on the matter. [16301/20]

Pearse Doherty (Donegal, Sinn Fein)
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43. To ask the Minister for Finance if the temporary wage subsidy scheme will be amended to ensure that employers will not lose a portion or all of the wage subsidy in cases in which an employee works additional hours in comparison to those worked and reflected in January and February payroll submissions, particularly in terms of seasonal work; if he will consider allowing the calculation of subsidy based on payroll submissions in 2019 to reflect the seasonal variation in pay; and if he will make a statement on the matter. [16297/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 42 and 43 together.

The Temporary Wage Subsidy Scheme (TWSS) was introduced in March and was specifically designed to support firm viability and preserve the relationship between the employer and employee insofar as is possible through the lockdown period, in circumstances where the employer’s business had been negatively impacted by COVID-19.

Since it was introduced, over 50,000 firms have availed of the scheme (which is almost a third of all employers from 2019). Over 500,000 jobs have been directly supported over the period and many more indirectly. This is considerable coverage and it is noted that the value of payments made to date is over €2 billion.

The key benchmark for employer eligibility, as set out in the legislation, is that turnover in Q2 2020 must be down by at least 25 per cent. Once the employer meets this requirement it remains eligible for the TWSS for the full period of the scheme.

The sum the employer receives is based on the employees who were on their payroll on 29 February 2020, the net salary such employees received in January and February 2020, as well as the extent to which the employer remains able to continue to discharge their legal obligation to pay their employees’ salaries. Unfortunately, the scheme cannot be tailored to meet every individual set of circumstances for either employers or employees. This is because it builds on data that has been returned to Revenue through its real-time PAYE system.

As the public health restrictions are eased, the challenge for the economy and enterprises is evolving. Having regard to the novel circumstances surrounding the re-opening of the economy as well as the need to avoid the risk of forcing otherwise viable firms to close, the former Government announced last month that, as matters then stood, the TWSS would remain in place until the end of August. I can confirm that this remains the position. Work is currently ongoing around how best to support employers into the more medium term, including consideration of support for seasonal workers and new hires. As per the commitment in the Programme for Government, it is planned that the July Jobs Initiative will set out a pathway for the future implementation of the TWSS.

Fergus O'Dowd (Louth, Fine Gael)
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44. To ask the Minister for Jobs, Enterprise and Innovation if matters raised correspondence by a person (details supplied) in relation to supports for the tourism sector during the Covid-19 pandemic will be addressed.; and if he will make a statement on the matter. [16427/20]

Leo Varadkar (Dublin West, Fine Gael)
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The Government has introduced a €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs. Full details on all COVID19 supports for business are available at: .

Any eligible business, including the self-employed, can apply for the following supports. The most appropriate support will depend on the characteristics of the business.

Micro Finance Ireland can provide loans of up to €50,000 as an immediate measure to specifically deal with exceptional circumstances that micro-enterprises – (any business -Sole Trader, Partnership or Limited Company with less than 10 full time employees and annual turnover of up to €2m)- are facing.

Local Enterprise Offices have moved training programmes, workshops and networking meet-ups online, covering areas such as cash management in a crisis, leading your business through COVID-19 and advice for employers impacted by the crisis. Training programmes are free of charge and places can be booked online, through your Local Enterprise Office.

My former colleague, the then Minister for Employment Affairs and Social Protection, Regina Doherty announced on 25 June that the Department’s Enterprise Support Grant will be made available to assist self-employed recipients who are exiting the Pandemic Unemployment Payment (PUP) scheme with a once-off grant of up to €1,000 to re-start their business. The grant will be payable to self-employed micro enterprises which employ fewer than 10 people, have an annual turnover of less than €1 million and are not eligible for support from the COVID 19 Business Restart Grant or other similar business reopening grants.

I am currently reviewing the full range of supports in place to help businesses, together with my Ministerial colleagues, as we prepare the forthcoming July Stimulus.

I can assure the Deputy that the Government will not be found wanting. Not only must we address the current challenges, but we must also look ahead.

There are some welcome signs of improvement in business activity and the economy. However, sectors that provided significant employment, such as tourism and hospitality, arts and entertainment and other services that rely on social interaction, remain in serious difficulty and their recovery prospects are highly uncertain.  

The July Stimulus will seek to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. The July package will also seek to ensure we are best placed to exploit emerging opportunities and attract high value projects with significant economic benefits and to position our economy and firms to meet future challenges. In the near-term, this includes helping companies further in overcoming the challenges of Brexit, but we also need to include measures that build enterprise resilience and help them transition to a low carbon future.

My colleague, Minister Eamon Ryan T.D., Minister for Transport may be able to provide more specific guidance on supports suitable for the travel sector, including the consumer related measure in the COVID-19 Refund Credit Note which was introduced under consumer related legislation, the package travel and travel trade licensing legislation, for which he has lead responsibility.

Bernard Durkan (Kildare North, Fine Gael)
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45. To ask the Minister for Jobs, Enterprise and Innovation the extent to which alternatives can be put in place to prevent or control the most negative aspects now emerging in terms of investment, foreign direct investment and small and medium-sized enterprises; and if he will make a statement on the matter. [16446/20]

Leo Varadkar (Dublin West, Fine Gael)
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Recent global developments – both as a result of Brexit and of the COVID-19 pandemic – have undoubtedly complicated the market for international foreign direct investment (FDI).

The challenges presented by Brexit in that context are well-known. The UK’s withdrawal from the EU does create commercial uncertainty and may affect investor decisions until there is clarity on the nature of the future EU-UK relationship. The IDA has been working hard with its client base, over a number of years, to help address and mitigate Brexit-related risks that could impact FDI in Ireland.

The Agency has also, ever since the EU-UK referendum in June 2016, been seeking to realise opportunities to attract further Brexit-related FDI to Ireland. The significant efforts that the IDA has invested into these efforts have yielded impressive results. The Agency has won 92 Brexit-related investments with an associated jobs potential of 5,900, numbers which could yet increase further.

More generally, we need to continue working to ensure that Ireland remains attractive in the long-term to international investors. That means consolidating existing strengths, such as further developing the skills of our talented work-force, and working to improve the long-term competitiveness of our economy.

We are also doing everything we can to support SMEs so that they can withstand the pressures that have been caused by COVID-19. The measures we have taken since the pandemic began are well-documented and include measures to boost liquidity and ensure access to finance. An important longer-term goal is to increase the strength of commercial ties between SMEs and overseas firms so that Irish businesses benefit as much as possible from FDI here.

Richard Bruton (Dublin Bay North, Fine Gael)
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46. To ask the Minister for Jobs, Enterprise and Innovation his plans as part of the recovery fund to create space for new initiatives within the regional enterprise strategies; and if he will make a statement on the matter. [16360/20]

Leo Varadkar (Dublin West, Fine Gael)
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My Department is currently engaged in final preparations on the July stimulus package and on preparations for the announcement of the National Recovery Plan on budget day in October. The purpose of the July package will be to save jobs and businesses, create new ones and to get people back to work. The National Recovery Plan will include the need for a major reskilling programme, as well as investment in education and policies to promote balanced regional development.

The individual Regional Enterprise Plans play a central role in supporting the delivery of balanced regional enterprise development and in ensuring that employment growth is spread across all regions.

At the end of June this year my predecessor as Minister, Heather Humphreys TD met with the Chairpersons of the nine Regional Enterprise Plan Committees on conference call and invited them to work with the Committees to identify proposals that would help to address economic impacts of the COVID-19 pandemic in their region. These groups are meeting in virtual format over the coming weeks to focus on this and will report back to my Department, with a view to contributing to the development of the National Recovery Plan in due course.

The Department’s Regional Enterprise Development Fund (REDF), administered by Enterprise Ireland and first introduced in 2017, complements the Regional Enterprise Plans by supporting collaborative projects that strengthen enterprise growth potential in the regions. To date, just over €100 million in funding for 68 projects has been approved over three competitive calls.

On 22 June 2020 Minister Humphreys announced the results of a targeted Border Enterprise Development Fund (BEDF) which sees a further €17.0 million in funding approved for 11 enterprise ecosystem strengthening projects across the Border Region that are aimed at mitigating the challenges for businesses in that region in the face of Brexit. This fund is part of a wider €28 million Border Stimulus Package.

The REDF and BEDF sit alongside and are complementary to the funding opportunities under Project Ireland 2040, the Rural and Urban Regeneration and Development Funds, Climate Action, and Disruptive Technologies, which collectively provide an opportunity to strengthen the regional enterprise ecosystem throughout the country.

When this funding is combined with the €2 billion Pandemic Stabilisation Recovery Fund, which provides capital through the Ireland Strategic Investment Fund to medium and large enterprises; the Sustaining Enterprise Fund, which provides funding of up to €180 million to enterprises including small enterprises; together with the other COVID-19 Grant and Support schemes provided; it is clear that enterprises currently have access to a wide range of measures. These measures will be further developed by the July Stimulus Package and the National Recovery Plan.

Richard Bruton (Dublin Bay North, Fine Gael)
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47. To ask the Minister for Jobs, Enterprise and Innovation the options under consideration for viable businesses to achieve a work out of debts or rents that might overwhelm them during the slow restart phase. [16361/20]

Leo Varadkar (Dublin West, Fine Gael)
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The Government has already committed to a €12 billion package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment - available to the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

As businesses are reopening, what is now needed is a plan of sufficient speed and scale to restore confidence and growth in the SME sector. The July Stimulus Package, as promised in the Programme for Government, will do this. It is radical, far-reaching and will save jobs, create new ones, and get our people back to work.

I see five areas which we should focus on in helping our enterprises in the future:

1. Income support

2. Direct grants for businesses

3. Cheaper finance

4. New opportunities for future jobs

5. Support for the hardest hit sectors

The July Stimulus Package needs to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. Our current Restart Grant is a help but I recognise it has limitations which are preventing it from having a deeper and wider impact.

I look forward to announcing the details of the July Stimulus Package with the Taoiseach shortly.

Looking beyond the immediate response to COVID-19, I intend to form an SME Growth Taskforce shortly. This group will contribute to the delivery of a National SME Growth Plan, which will map out an ambitious long-term strategic blueprint beyond COVID-19. This Plan will be brought to Government for approval as part of the National Economic Plan in October.

My officials continue to give the matter of commercial rents consideration. Several interdepartmental discussions have taken place and there has been engagement with a range of stakeholders on this matter. My officials have reflected on the different responses in other countries to explore possible options to address the issues involved.

Commercial leases are a matter for the parties involved. Many landlords are engaging positively with their tenants and showing forbearance but, at the same time, I have heard reports of some landlords being less accommodating. It is clear landlords and tenants need to talk to each other and come to some arrangement, as it is in everybody’s interest that terms are amicably agreed. To help with this, there is a commitment in the new Programme for Government to “Create a code of conduct between landlords and tenants for commercial rents” as one of the immediate actions. My officials will in the coming weeks be consulting with a range of stakeholders to draw up this Code of Conduct which I hope will be welcomed by the various representative groups and bodies as well as individual firms.