Michael Healy-Rae (Kerry, Independent)
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103. To ask the Minister for Finance if he will address a matter (details supplied) regarding bus operators; and if he will make a statement on the matter. [17731/20]

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 and has been extended until the end of August.

The underlying legislation and the TWSS itself were developed having regard to the Government objective of providing assistance to employers and employees, where businesses have been seriously affected by the Covid-19 pandemic and the restrictions which were introduced as a result. 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 continue to operate and employ their workforce.

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, in early June it was announced that the TWSS will remain until the end of August. Work has been ongoing and is at an advanced stage around how best to support employers into the more medium term. The position of various sectors, including the sector mentioned by the Deputy, will be taken into account in this process. 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 of the TWSS.

In relation to other direct support measures, I would draw the Deputy's attention to a recent publication by the Department of Business, Enterprise and Innovation, which outlines the key financial supports and resources that are being made available to help all businesses and sectors impacted by Covid-19. This publication is available at the following link:

Michael Healy-Rae (Kerry, Independent)
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104. To ask the Minister for Finance if he will address a matter (details supplied) regarding bus tour operators; and if he will make a statement on the matter. [17732/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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Payment breaks have been provided on a voluntary basis by members of the Banking and Payments Federation of Ireland (BPFI). This allowed lenders to quickly to provide substantial and rapid relief to impacted borrowers during a fast moving and evolving public health crisis. While Government has welcomed this important support provided by members of the BPFI for their business and consumer customers, it is ultimately a decision to be made by the individual finance lenders.

Payment breaks are a widespread support being offered by lenders across the European Union and have been implemented on both a legislative and voluntary basis. The European Banking Authority (EBA) issued guidelines on their operation on 2 April 2020, with the aim of clarifying the regulatory treatment of payment moratoria across the EU.The EBA Guidelines prescribe the criteria which both voluntary and legislative moratoria must meet in order for relevant loans not to be classified as defaulted or otherwise forborne. One of the conditions stipulated is that the moratorium envisages only changes to the schedule of payments, namely by suspending, postponing, or reducing the payments of principal amounts, interest, or of full instalments, for a predefined limited period of time. No other terms and conditions of the loan should be changed. In addition, the application of payment breaks cannot be company specific and must be broadly applied.

The Central Bank expects all lenders to develop strategies and operational capability to continue to support borrowers who cannot return to full capital and interest after the end of the payment break. This will include offering forbearance as required and restructuring of loans in the event of long-term affordability issues. I would also call on borrowers in this position to engage as early as possible with their lenders.