Gerald Nash (Louth, Labour)
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342. To ask the Minister for Finance if he received advice from his officials regarding the distributional impact of the stay and spend incentive; if persons in the lower tax bracket or higher income tax bracket are more likely to avail of the scheme; and if he will make a statement on the matter. [20482/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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In preparing the Stay and Spend Tax Credit measure, I received advice from officials in my Department and Revenue on a wide range of issues, including the number of persons that may be in a position to avail of the incentive fully or partially.

The relief applies equally to all taxpayers regardless of whether they pay tax at the standard or marginal rates and the minimum level of expenditure to start to benefit from the incentive is €25. The credit will be off-set against the claimant’s income tax liability in the year of assessment, after other allowances, deductions or reliefs have been given to the claimant. However, in order to maximise the number of potential beneficiaries of the proposal, the Bill provides that if the credit available to a claimant is higher than their income tax liability in the year of assessment, any excess credit may be off-set against their liability to USC in that same year. This credit can be used to reduce a claimant’s liability to income tax and USC in the year of assessment to nil.

Gerald Nash (Louth, Labour)
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343. To ask the Minister for Finance his plans to attach eligibility conditions pertaining to employment rights and conditions for employers availing of the stay and spend incentive; his plans for a sectorial oversight mechanism with the involvement of recognised trade unions to ensure the effective implementation of this policy with respect to workers’ rights; and if he will make a statement on the matter. [20483/20]

Gerald Nash (Louth, Labour)
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344. To ask the Minister for Finance the status of his discussion with the Tánaiste and Minister for Business, Enterprise and Innovation regarding the proposed eligibility criteria for the stay and spend incentive; his plans to end the effective employer veto of joint labour committees for the hospitality sector to ensure workers in businesses benefiting from the scheme are protected and fairly remunerated; and if he will make a statement on the matter. [20484/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 343 and 344 together.

The Stay and Spend Tax Credit is an incentive targeted at consumers. It does not envisage a regulatory role in relation to the employer/employee relationship within the eligible service provider in so far as terms, conditions, entitlements and rights of the employment are concerned. The regulation of such matters is provided for in other legislation outside of the tax code.

In relation to joint labour committees for the hospitality sector, my Department has been advised by the Department of Business, Enterprise and Innovation that Joint Labour Committees are bodies established under the Industrial Relations Acts to provide machinery for fixing statutory minimum rates of pay and conditions of employment for employees in sectors where union organisation is weak or non-existent, with relatively low pay. A Joint Labour Committee is composed of equal numbers of representatives of employers and workers in an employment sector. The process for setting up a Joint Labour Committee requires the co-operation of both sides of industry. A proposal that had not considered and heard the views of the employer side would be unlikely to survive a legal challenge. Employees in the hospitality sector, like all workers in Ireland, are protected by a robust regime of employment rights.