Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

181. To ask the Minister for Trade, Enterprise and Employment if he remains satisfied regarding the adequacy of Covid-19-related supports to stabilise employment in the economy; and if he will make a statement on the matter. [35399/20]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The pandemic has caused untold damage to people's lives and livelihoods. I know that too many businesses have been severely impacted by the restrictions needed to ensure public health safety during the pandemic. Our response to COVID-19 will continue to assist those businesses affected.

Budget 2021 provides a significant additional package of tax and fiscal measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors.

These measures are in addition to the July Stimulus, which was a substantial financial package to stimulate our economy worth more than €5 billion, including €2 billion in loan guarantees for the new Credit Guarantee Scheme.

Budget 2021 is unprecedented in terms of its scale at almost €90 billion. Its purpose is to protect lives and livelihoods of everyone in the state.

In 2021, workers will see:1. No increases to income tax, USC or PRSI.2. A modest increase in the minimum wage.3. A reduction from 6 to 3 in waiting days for Illness Benefit (to be paid on day 4), which will help when it comes to introducing statutory sick pay next year.4. An extension of Parent’s Benefit by a further three weeks to 5 weeks, building on the work of the last government. 5. An increase in the Earned Income Tax Credit for the self-employed from €1,500 to €1,650. This will equalise it with the employee tax credit from this year. They will be able to warehouse their 2020 preliminary tax liability, which will help bring immediate relief.6. For the self-employed workers in receipt of PUP, they will now also be able earn up to €480 per month – or €120 a week - without losing access to the payment.

For Businesses, we have announced:1. A new COVID Restrictions Support Scheme (CRSS). 2. The extension of the Employment Wage Subsidy Scheme (EWSS) well into 2021.3. The extension of the commercial rates holiday to the end of this year will help reduce the fixed cost of doing business.4. A reduced VAT rate from 13.5% to 9% for the hospitality and tourism sector to help hotels, pubs, restaurants and other businesses in the entertainment, tourism and hospitality sectors.5. A €3.4bn Recovery Fund to provide additional firepower and flexibility to respond to and invest in job creation opportunities, business grants, infrastructure, reskilling and upskilling.

Unlike the previous recession, the Government is in a position to borrow and to increase capital budgets spending on public infrastructures in the coming years under Project Ireland 2040. This did not happen by accident. Ireland is also now benefitting from low interest rates for borrowing and for central bank monetary policy.

We are also progressing the Government's significant capital investment programme of €10.1bn, which is the largest capital budget ever as part of our implementation of the National Development Plan. This investment will add further stimulus to the economy and help create and sustain jobs in the construction sector in particular.

I am working with my colleagues across Government to assist businesses impacted by COVID-19 and I will continue to monitor the measures in place for SMEs with the goal of setting our country towards economic recovery.