Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

84. To ask the Minister for Finance the details of the cost of the employment wage subsidy scheme since its inception; his plans to continue the scheme beyond the schedule of 31 March 2021; the estimated costs if the scheme were to continue to 31 December 2021; and if he will make a statement on the matter. [3442/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Employment Wage Subsidy Scheme (EWSS) has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. To date, subsidy payments of over €1.5 billion have been made and PRSI relief worth over €270m granted to over 41,600 employers in respect of over 467,000 employees.

The scheme is demand led and the cost ultimately depends on a number of factors, including the numbers of employers making a valid claim for the subsidy and the numbers of employees they claim the subsidy in respect of. Based on the average monthly value of the EWSS claimed to date, if the scheme was to be maintained in its current form, it is estimated that it could cost an additional €350m per month in direct subsidy payments and €61m in PRSI relief. Over an additional 9 months that would cost a further €3.15bn in direct subsidy and €550m in PRSI relief.

I have always been clear that there will be no cliff-edge to the EWSS. It is noted that the legislation implementing the measure provides that it will be in place until 31 March 2021, but also allows me, as Minister for Finance, to extend the scheme until the end of June 2021, subject to certain conditions.

It is likely that continued support will be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible. Decisions on the form of such support will take account of emerging circumstances and economic conditions as they become clearer.

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

87. To ask the Minister for Finance the status of the temporary wage subsidy scheme and the employment wage subsidy scheme respective compliance programmes; if the Revenue Commissioners will publish a list of employers who availed of the employment wage subsidy scheme at the end of January 2021 as anticipated; and if he will make a statement on the matter. [3445/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by Revenue that since June of last year, it has engaged in a programme of compliance checks on all employers who participated in the Temporary Wage Subsidy Scheme (TWSS). The purpose of the compliance checks is to ensure that participating employers were properly eligible for the scheme and that the supports were paid over to qualifying employees.

To date, TWSS compliance checks have been completed in respect of more than 92% of participating employers, with the remainder in progress. The checks have confirmed high levels of compliance with the requirements of the scheme by most employers. However, a relatively small number of participating employers were identified as being ineligible for the scheme. To date, over €3m of subsidy payments has been recouped, with some cases still to be concluded.

Regarding the Employment Wage subsidy Scheme (EWSS), Revenue has advised me that it is currently carrying out real-time reviews of participating employers to ensure they are correctly eligible for the scheme. Where issues are identified, Revenue engages with the business to ensure they are quickly rectified.

Finally, Revenue has confirmed that it will publish the names and addresses of all employers who received EWSS payments during the period 1 July 2020 to 31 December 2020 before the end of January 2021 in accordance with Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020.

The list of all employers who availed of the TWSS has already been published in accordance with Section 28(8) of the Emergency Measures in the Public Interest (Covid 19) Act 2020 and may be viewed at the following link:

.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Employment Wage Subsidy Scheme (EWSS) was legislated for under the Financial Provisions (Covid-19) (No. 2) Act 2020. The scheme is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy and to deliver an enterprise support to employers based on business eligibility delivering a per-head subsidy on a flat rate basis.

As regards eligibility for the scheme, an employer must be able to demonstrate that his or her business will experience a 30% reduction in turnover or orders between 1 January and 30 June 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic. Additionally, the employer must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance throughout the scheme. The scheme has no role in relation to the employer/employee relationship in regard to terms and conditions.

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 and employers are required to undertake a review on the last day of every month to ensure they continue to meet the above eligibility criteria. Employers who, following a monthly review, find they no longer qualify should deregister for EWSS with immediate effect i.e. from the 1st of the following month.

The Deputy refers to orphan companies mainly attached to the entertainment and ticket industry. Without knowing the specific facts of each case it is difficult to determine eligibility based on this point. However, as regards the film industry, Designated Activity Companies (DACs) operate as a requirement under Section 481 of the Taxes Consolidation Act 1997, which provides a corporation tax credit for eligible expenditure on qualifying films.

It is not possible for Revenue to verify whether a specific DAC would qualify for the EWSS based on the eligibility criteria but given that all balancing funding for the production above the 32% tax credit must already be secured before claiming the credit, a reduction of earnings would not be evident at the outset.

Section 481 is administered by both the Department of Culture, Heritage and the Gaeltacht, in relation to the cultural and employment aspects, and Revenue, in relation to the quantum of the credit available. Further details re Section 481 can be found at:

.

Finally, guidelines on the operation of the EWSS including comprehensive information on employer eligibility and supporting proofs is available on the Revenue website at:

.

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

89. To ask the Minister for Finance the top ten individual amounts repaid by companies that received payments under the Covid-19 temporary wage subsidy scheme; and the sector that each firm operates in tabular form. [3456/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Revenue has confirmed that 5,195 employers have repaid Temporary Wage Subsidy Scheme (TWSS) payments to date. The total amount refunded up to 31 December 2020 is just over €79m. The top 10 amounts repaid range from approximately €1.4m to €6m and span various sectors of the economy.

Due to confidentiality concerns, it is not possible for Revenue to list the top 10 amounts and the sectors involved in the manner requested by the Deputy.