Gerald Nash (Louth, Labour)
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226. To ask the Minister for Finance the number of businesses and employees respectively on the employment wage subsidy scheme, EWSS, in County Louth; and if he will make a statement on the matter. [31482/20]

Gerald Nash (Louth, Labour)
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227. To ask the Minister for Finance the percentage and number of employees on the employment wage subsidy scheme, EWSS, receiving a full wage top-up contribution from their employers; the percentage and number of employees on the EWSS receiving a partial wage top-up from their employers; the percentage and number of employees on the EWSS receiving no top-up of their wages; and if he will make a statement on the matter. [31483/20]

Gerald Nash (Louth, Labour)
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228. To ask the Minister for Finance the number and percentage of employees respectively on the lower and higher rate of employment wage subsidy scheme, EWSS, in tabular form; and if he will make a statement on the matter. [31484/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 226 to 228, inclusive, together.

Revenue is publishing regular statistical updates on the operation of the Employment Wage Support Scheme (EWSS), as it did previously for the Temporary Wage Subsidy Scheme (TWSS). These statistics are available at: .

In the statistics release dated 15 October 2020 at the above link, Table 3 shows the numbers of EWSS employers and employees by county for September (the most recent full month EWSS payment data). For Louth, these figures are roughly 850 and 7,500 respectively. Regarding Question 228, Table 4 of the same statistics shows the number of employees in respect of whom EWSS is being paid, by their weekly pay range.

Regarding Question 227, the EWSS operates as a flat rate subsidy based on the number of qualifying employees on each employer’s payroll. Employers operate payroll as normal while in receipt of EWSS and therefore, unlike the TWSS, the issue of employer additional pay or top-ups does not arise.

Gerald Nash (Louth, Labour)
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229. To ask the Minister for Finance the status of his plans to reform the employment wage subsidy scheme, EWSS; and if he will make a statement on the matter. [31485/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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As I announced on Budget day, there will be no cliff-edge to the Employment Wage Subsidy Scheme (EWSS) which will be in place until 31 March 2021. It is noted that the legislation implementing the EWSS also provides that the scheme may be extended until the end of June 2021, should it be required.

It is acknowledged that a similar type scheme will be needed out to the end of 2021 to provide businesses with greater levels of certainty, to the greatest extent possible. The Government will decide on the form of such a measure, which is expected to be adjusted to suit the economic conditions of 2021, as they become clearer.

More immediately, the Deputy will be aware that, yesterday, the Government decided upon and announced a move to Level 5 restrictions. A revision of the rates of subsidy that may be claimed under the EWSS has been announced as part of that. As has been the case throughout the pandemic, the Government continues to operate in a highly responsive manner and to adjust policy in relation to the scheme where such changes are deemed necessary. In this regard also, the Financial Provisions (Covid-19) (No. 2) Act 2020 obliges me to monitor and superintend the administration of the wage subsidy scheme and this is a duty that I intend to carry out fully over the life of the scheme.

In the meantime, it is noted that EWSS payments have been made to almost 33,000 employers in respect of 341,200 workers in September worth €254 million which is considered strong coverage for employers who need it.

Gerald Nash (Louth, Labour)
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230. To ask the Minister for Finance the status of the compliance programme for the employment wage subsidy scheme, EWSS; the number of employers that have been inspected; the number of cases requiring further investigation; the number of employers that have been sanctioned; and if he will make a statement on the matter. [31486/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that the Employment Wage Subsidy Scheme (EWSS) was legislated for under the Financial Provisions (Covid-19) (No. 2) Act, 2020. The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll.

The EWSS is administered by Revenue on a 'self-assessment' basis. I am advised by Revenue that the primary focus at the moment is on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments are registered for the EWSS and receive the payments they are entitled to quickly. Complementing this focus is a real-time monitoring, and where appropriate, review of submissions received from employers where anomalies are detected to ensure they are corrected in a timely manner, thereby ensuring employers receive their entitlements in a timely manner.

The legislation includes specific anti-abuse provisions which underpin the obligation on employers to operate the scheme as intended by the legislation, with bona fide commercial reasons underpinning any changes in the operation of employee payroll arrangements. Section 28B (6)(b)(i) refers to manipulation of payroll to include instances where contractual gross pay which would otherwise have been paid is deferred, suspended, increased or decreased. Section 28B (6)(b)(ii) refers to laying off one employee to replace him or her with more than one employee earning a lower wage, other than for bona fide commercial reasons.

The consequences of a determination by Revenue that abuse has occurred would be significant with sanctions imposed reflecting the seriousness of such actions including complete exclusion from the scheme at employer level, a requirement to repay all subsidies already received and PRSI credit issued together with interest, and the employer may face criminal prosecution. The number of sanctions issued will therefore be available in due course.

The purpose of the anti-abuse provisions are to act as a deterrent against abuse of the system. I am satisfied that these measures and the real-time monitoring of payroll submissions by Revenue will minimise the opportunity for abuse. The wage subsidy scheme is an exceptional measure to support business and employment in these difficult times and there will be no tolerance for abuse of the scheme. However, I am advised by Revenue that the vast majority of employers are making their best efforts to maintain as much employment as possible and are adjusting their payroll systems, in conjunction with their payroll software providers, to comply with the conditions of the scheme.

Gerald Nash (Louth, Labour)
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231. To ask the Minister for Finance the status of the staycation subsidy grant; if the projected cost of the scheme has changed in view of level 3 restrictions; and if he will make a statement on the matter. [31488/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Stay and Spend scheme provides tax relief by means of a tax credit at the rate of 20% on qualifying expenditure of up to €625 per person, or €1,250 for a jointly assessed couple. The tax credit is worth a maximum of €125, or €250 for a jointly assessed couple. The purpose of the scheme is to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions.

The scheme is just one of a broad range of measures to support various sectors, including hospitality, at this time. For example, I announced in my Budget speech that the VAT rate applied to Tourism and Hospitality related goods and services is to be temporarily reduced from 13.5% to 9%, from 1 November 2020 to 31 December 2021, in recognition of the unprecedented challenges facing the sector.

The Stay and Spend scheme has been in operation since 1 October, and as of 16 October, 2743 business premises had registered to be Qualifying Service Providers.

Notwithstanding the Government decision and announcement yesterday to move to Level 5 restrictions, it is still too early in the lifetime of the scheme to conclude that a revision in the estimated cost of same is warranted.