Written answers

Wednesday, 31 March 2021

Department of Finance

Covid-19 Pandemic Supports

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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393. To ask the Minister for Finance the estimated cost of extending the employment wage subsidy scheme for the tourism and hospitality sector until March 2022. [17607/21]

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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394. To ask the Minister for Finance the estimated cost of extending the employment wage subsidy scheme for the tourism and hospitality sector until the end of 2021. [17608/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 393 and 394 together.

I am aware of concerns that have been raised regarding the pace of recovery for the live events sector, and that it has been suggested that the level of support be increased and/or that the application of some of the new State supports should be delineated on the basis of explicit sectoral qualification criteria. However, the reality of COVID-19 is that our whole economy and labour market have been rapidly transformed by this unprecedented shock and nearly all sectors have been negatively impacted either directly or indirectly.

The objective of the Employment Wage Subsidy Scheme (EWSS) is to support all employment and maintain the link between the employer and employee insofar as is possible and 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 €2.4 billion have been made and PRSI relief worth over €408m granted to over 48,100 employers in respect of over 542,000 employees.

Over the past 5 full months while level 5 restrictions have been in place, the average cost has been €380m per month in direct subsidy and €60m per month in PRSI foregone. 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. The cost would also depend on the criteria that was applied for the scheme, such as the employer and employee eligibility, the actual rates of subsidy being given, and the extent of public health restrictions.

I have always been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made on Tuesday 23 February, it has been decided that the scheme is now to be extended until the end of June 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.

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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395. To ask the Minister for Finance if he plans to extend the Covid restrictions support scheme payment for businesses that continue to be unable to generate more than 25% of their average weekly 2019 turnover for the remainder of 2021; the estimated cost for such a measure; and if he will make a statement on the matter. [17612/21]

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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396. To ask the Minister for Finance if he plans to extend the Covid restrictions support scheme payment for businesses in the tourism and hospitality sector that continue to be unable to generate more than 25% of their average weekly 2019 turnover for the remainder of 2021; the estimated cost for such a measure; and if he will make a statement on the matter. [17613/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 395 and 396 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 the 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 significantly 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.

I have been clear that there will be no cliff-edge to supports and the Deputy will be aware 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.

In relation to estimated costs, Revenue publishes weekly statistics (since March 2020) on the operation of the COVID-19 support schemes including the CRSS, and these are available at: . The most recent of these statistics (dated 25 March 2021) shows, among other information, the sectoral breakdown of CRSS payments to date.

As of the evening of Monday 29 March, CRSS payments of €410m have been made to businesses since the inception of the Scheme, approximately €260m of which has been paid in the first quarter of 2021. The hospitality and tourism sector (bars, cafes, restaurants, hotels and other accommodation providers) has received approximately €240m in CRSS payments since last October and €105 million of these payments have been made by Revenue in the first quarter of 2021.

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