Neale Richmond (Dublin Rathdown, Fine Gael)
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66. To ask the Minister for Finance if he has encouraged banks to offer payment breaks for small businesses or on mortgages for those who are out of work due to Covid-19 restrictions; and if he will make a statement on the matter. [35475/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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On 18 March last, the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the Covid-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months. This was a welcome initiative and it allowed necessary relief to be quickly and efficiently provided to borrowers.

Banks have now provided for flexible options for borrowers who can recommence payments following a Covid-19 payment break, and the BPFI has produced a useful guide on this - .

However, I am very conscious that many borrowers continue to be impacted by the economic consequences of Covid-19, and that they may not be in a position to resume their loan repayment commitments when their payment break ends or may be in difficulty now for the first time. I am fully aware of the stress and uncertainty that these borrowers are facing, and they will continue to need assistance and support from their lenders. As the Deputy will know, the Tánaiste, the Minister for Public Expenditure and Reform and I met the CEOs of the country’s retail banks and the Banking Payments Federation Ireland on 28 September to discuss this matter and we indicated that it is particularly vital that lenders work with their customers to ensure that suitable arrangements are put in place to assist their customers who are still experiencing difficulty. The lenders indicated that they will ensure that customers who have difficulties in meeting their loan repayments will be supported with a range of options so that a suitable arrangement can be agreed.

Borrowers have a suite of regulatory protections, such as the Central Bank's Code of Conduct on Mortgage Arrears, and lenders have specific obligations to support and work with borrowers who are continuing to experience mortgage or other loan difficulty because of Covid-19. These options could include additional flexibility, and this could be a short term arrangement such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements. The Central Bank has confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers, providing they are appropriate for the individual borrower circumstance. Each individual’s position is different and that’s why a case-by-case approach is now the best approach as some sectors of the economy are more impacted than others.

I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection framework will be fully available to mortgage and other borrowers that will still need support due to the economic impact of Covid-19.

Niall Collins (Limerick County, Fianna Fail)
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67. To ask the Minister for Finance the assistance that can be offered to a business (details supplied); and if he will make a statement on the matter. [35493/20]

Matt Shanahan (Waterford, Independent)
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71. To ask the Minister for Finance if he will review a matter (details supplied) regarding the Covid-19 restrictions support scheme; and if he will make a statement on the matter. [35573/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 67 and 71 together.

The details of the Covid Restrictions Support Scheme (CRSS) are set out in the Finance Bill 2020 and guidelines on the operation of the scheme are available on the Revenue website (). The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic.

The CRSS was announced on Budget day and the operational details are being worked though as quickly as possible. The scheme will be implemented by the Revenue Commissioners who have shown as an organisation that they are very effective in operating schemes to support businesses in this crisis.

A two-step process is necessary to make a claim under the CRSS. The qualifying person must first register for CRSS on Revenue Online Service’ (ROS) and then complete a claim in respect of a claim period or claim periods. Revenue have been accepting registrations for the scheme since 1 November, and claims will be accepted from mid-November with payments made shortly thereafter.

The support will be available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.

Where, as a result of the restrictions, a company or a self-employed individual is either forced to temporarily close their business, or their business is required to operate at significantly reduced levels, they will qualify for support under the scheme. Certain other conditions will apply, including that the person has a tax clearance certificate.

Where businesses ordinarily operate from a business premises (generally a building) located in a region for which restrictions are in operation, they may qualify under the scheme provided they meet the eligibility criteria, including the requirement that customers are either prohibited, or significantly restricted, from accessing their business premises to purchase goods or services due to the specific terms of the Covid restrictions announced by Government.

Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as an outside caterer, that business will not meet the eligibility criteria. A business that does ordinarily operate from a music or entertainment venue (for example, a company that operates a theatre) or a business in the tourism sector carrying on a trade consisting of, for example, the operation of a gallery or other cultural attraction, located in a region subject to restrictions, and who meets the eligibility criteria, will however be able to claim support under CRSS.

The scheme will not apply to a business in the events industry or in other sectors, which does not ordinarily operate from a fixed business premises located in a region subject to the restrictions, but rather supplies goods or services to a business that does qualify for support under CRSS because, under the Covid restrictions, that other business is required to temporarily close or significantly reduce its activity. Each business must satisfy the eligibility criteria in their own right.

It is not sufficient that the business supplies goods or services to another business that qualifies for the support because, under the Covid restrictions, that other business is required to temporarily close, or significantly reduce, its activity.

I would also point out that the CRSS is an additional measure for businesses in a region subject to significant Covid-19 restrictions.Companies and self-employed workers who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including existing supports available under the and the and the range of measures announced as part of Budget 2021 to support particular sectors including Tourism and live entertainment. They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.

Businesses may also be able to benefit from the Live Performance Support Scheme details of which are available at .