Written answers

Wednesday, 27 January 2021

Department of Finance

Covid-19 Pandemic Unemployment Payment

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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191. To ask the Minister for Finance if consideration will be given to companies repaying the pandemic unemployment scheme if they availed of the scheme for their staff in the event that many of them were even more profitable than in the previous year; and if he will make a statement on the matter. [3709/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Employment Wage Subsidy Scheme (EWSS) has been deliberately designed as an economy wide enterprise support that is open to all sectors on the basis of a turnover test that can be applied across the whole economy while at the same time remain targeted at employers who are considered to be most in need of support.

The EWSS turnover test has been specifically calibrated so as to target the subsidy at otherwise viable employers whose businesses continue to be adversely impacted by COVID-19 by requiring a comparison of the firm’s pre-pandemic operations with their current operations. The legislation provides that the employer must be able to demonstrate that they are operating at no more than 70% in either the turnover of the employer’s business or the customer orders received by the employer by reference to the period from July to December 2021 compared with the same period in 2019.

I would draw the Deputy's attention to the fact that the EWSS legislation contains a number of important safeguards and flexibilities in so far as the scheme’s operation and effectiveness is concerned. As Minister for Finance, I am required under the law to monitor and superintend the administration of the scheme and to have economic assessments made every 2 months at least.

It is also noted that the EWSS legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances and if it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments.

I am satisfied that the EWSS legislation contains sufficient safeguards to ensure that the scheme is not taken advantage of by employers, while at the same time allowing viable firms to access the support they need.

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