Written answers

Wednesday, 12 May 2021

Department of Finance

Departmental Schemes

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

96. To ask the Minister for Finance if a help-to-buy scheme application by a person (details supplied) is being examined; the projected timeframe for the processing of applications; and if he will make a statement on the matter. [24758/21]

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

The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment as their home. The incentive provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.

As part of the Government’s July 2020 Jobs Stimulus Package the relief available to first-time buyers was temporarily increased (to end 2020) to a maximum of €30,000 where certain conditions were met by the applicants. This temporary increase was further extended to 31 December 2021 in the 2020 Finance Act.

I am advised by Revenue that the HTB application submitted by the persons in question has already been approved under ‘stage 1’ of the process. Revenue has also confirmed that it has made direct contact with the persons to advise them on the requirements that must be completed to progress their claim under ‘stage 2’ of the process. Revenue also provided them with contact details should they encounter any further difficulties.

Photo of Marc MacSharryMarc MacSharry (Sligo-Leitrim, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

97. To ask the Minister for Finance if restaurant and bar owners providing outdoor dining services will be able to continue to avail of the employment wage subsidy scheme when they are permitted to reopen from 7 June (details supplied); and if he will make a statement on the matter. [24761/21]

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

The Employment Wage Subsidy Scheme (EWSS) is an economy-wide scheme that is open to all sectors. It focuses primarily on business eligibility, delivering a per-head subsidy on a flat rate basis to the employer. The objective of the EWSS is to support businesses, encourage employment and help to maintain the link between employers and employees. The 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, payments of over €3 billion and PRSI credit of over €500 million have been granted to 48,900 employers in respect of 558,000 workers.

The EWSS “turnover test” has been specifically designed 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 primary employer qualification for the EWSS is based on the employer's turnover in the current six-month period being less, compared with the same pre-pandemic position period in 2019. The legislation provides that the employer must be able to demonstrate that it is operating at no more than 70% in either the turnover of business or the customer orders received by the employer by reference to the period from 1 January to 30 June 2021 compared with the equivalent period in 2019.

To answer the specific point raised in the Deputy's question, the turnover qualification requirement for EWSS applies regardless of whether the business is required to close fully or partially due to public health restrictions, or indeed if the business could remain open throughout the pandemic. The “turnover test” is the determining factor as regards eligibility for the EWSS and accordingly, the business must have suffered at least a 30% decrease in its turnover and this disruption is due to the Covid-19 pandemic.

The EWSS is designed to be flexible for the employer and take account of potentially sudden changes in turnover so if there is a reduction in turnover in the future because of a change in circumstance the employer may be entitled to make a claim for that later period.

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 June 2021.

As the revised plan is implemented, the EWSS will play an important role in getting people back to work as public health restrictions are eased, thereby reducing the numbers dependent on social welfare payments over time, including the Pandemic Unemployment Payment (PUP).

The Government’s position remains that there will be no cliff-edge to the EWSS. 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 will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.

Photo of Jim O'CallaghanJim O'Callaghan (Dublin Bay South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

98. To ask the Minister for Finance his views on a payment system (details supplied) being proposed by Ireland's main financial institutions; his views on whether it may affect competition within the sector; and if he will make a statement on the matter. [24821/21]

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

Firstly, it should be noted that this proposed joint venture is subject to approval by the Competition and Consumer Protection Commission (CCPC) and as such it is not appropriate for me to comment on this proposed joint venture in more detail. I understand the CCPC will complete a detailed and robust examination and subsequently either approve, approve subject to commitments or block the proposed transaction.

I am informed by officials in the Central Bank of Ireland that any new arrangement must obtain the required regulatory approval and/or be held to the relevant oversight standards by the competent authority, if applicable. With regard to latter, the Eurosystem recently published information on a proposed harmonised oversight framework to meet the challenges posed by the evolving nature of the retail payment system. The proposed oversight framework for electronic payment instruments, schemes and arrangements (PISA) is based on the Principles for Financial Market Infrastructures (PFMIs). Under the PFMIs a payment arrangement should have objective, risk-based and publicly disclosed criteria for participation, which permit fair and open access.

Comments

No comments

Log in or join to post a public comment.