Martin Browne (Tipperary, Sinn Fein)
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296. To ask the Minister for Finance his views on increasing the Covid restriction support scheme for businesses with a 75% drop in revenue; his views on the way the hotel industry estimates that 44% of hotel bedroom stock is excluded from the scheme entirely; and if he will make a statement on the matter. [13238/21]

Christopher O'Sullivan (Cork South West, Fianna Fail)
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303. To ask the Minister for Finance if he will increase the rate of the Covid restrictions support scheme and extend it until the end of 2021; and if he will make a statement on the matter. [13419/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 296 and 303 together.

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. Details of CRSS are set out in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website at:

To qualify under the scheme, a business must carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. The trade must be carried on from a business premises that is located in a region subject to restrictions introduced in line with the Government’s ‘Living with Covid-19 Plan’, with the result that the business is required to prohibit or considerably restrict customers from accessing its business premises.

To make a claim under the CRSS, a business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 in the case of a new business) multiplied by the number of weeks in the period for which a claim is made.

Domestic travel restrictions or social distancing measures are not the level of restrictions to which the CRSS refers. To be eligible to make a claim under the CRSS, the applicable restrictions must require the business to either prohibit, or significantly restrict, customers from accessing the business premises in which the relevant business activity is carried on.

In relation to the eligibility of hotels to claim under the CRSS, I understand the Deputy is referring to a statistic that was included in a media statement made by the Irish Hotels Federation on 11 December 2020. At that time, public health restrictions had been eased, with a phased move to a revised Level 3 restrictions applying nationally, which meant that hotels were allowed to reopen to provide accommodation services to the general public. Gyms, leisure centres and swimming pools, including those within hotels, were also allowed to reopen for individual use. Where, on the relaxation of restrictions, a hotel ceased to be substantially restricted, and therefore ceased to be eligible to claim under the CRSS, it could claim an additional week’s support under the scheme (referred to as a ‘restart week’) to assist it with the costs of reopening at that time.

Since 24 December 2020 hotels have, under public health regulations, been required to close to the public (other than for guests who had a booking and were due to check in up to and including 26 December 2020), with limited opening allowed only for essential non-social and non-tourist purposes. Therefore, hotels are currently eligible to make a claim under the CRSS because public health restrictions are in place which require the business to either prohibit, or significantly restrict, customers from accessing their business premises.

In relation to eligibility criteria and increasing the rates of the scheme, I have no plans to change the eligibility criteria for the CRSS or to increase the rates. The CRSS is just one of the Government’s supports to assist businesses impacted by COVID-19. Businesses who are not eligible for CRSS may be entitled to alternative supports put in place by the Government, including the COVID Pandemic Unemployment Payment (PUP), the Employment Wage Subsidy Scheme (EWSS) and the Tourism Business Continuity Scheme. Businesses may also be eligible under the Debt Warehousing Scheme to ‘park’ certain VAT and PAYE (Employer) liabilities, excess payments received under the Temporary Wage Subsidy Scheme (TWSS), outstanding balances of self-assessed Income Tax for 2019 and Preliminary Tax for 2020.

The legislation provides that the Scheme will run to 31 March 2021 but may be extended by Ministerial Order (subject to Dáil approval) but not later than 31 December 2021.

I have been clear that there will be no cliff-edge to supports and, as Deputies will be aware from announcements made on Tuesday 23 February, it has been decided that both the EWSS and the CRSS are now to be extended until the end of June 2021.

With the agreement by Government on the revised plan, COVID-19 Resilience and Recovery 2021: The Path Ahead, a cautious and measured approach will be taken as we lay the foundations for the full recovery of social life, public services and the economy. It is therefore appropriate that key business supports should remain in place until the end of the second quarter of 2021.

Consideration is being given to the fact that continued support could 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.

The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.