Louise O'Reilly (Dublin Fingal, Sinn Fein)
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92. To ask the Minister for Finance if the enhanced employment wage subsidy scheme will be extended to a sector (details supplied). [8800/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The objective of the Employment Wage Subsidy Scheme (EWSS) is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the Covid-19 crisis. It is an economy-wide scheme that operates across all sectors.

In money terms, the overall support provided to-date (10th February) by EWSS is over €7.4 billion comprising direct subsidy payments of €6.4 billion and PRSI forgone of €1 billion to 51,900 employers in respect of over 713,500 employees. 

To be eligible for EWSS an employer must be able to demonstrate that its business has experienced a 30% reduction in turnover or orders between 1 January and 31 December 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic.

The Government and I have been clear that there will be no cliff edge to supports for employers but we have also been clear that the EWSS cannot run indefinitely, nor is it sustainable to continue with the enhanced rates for a prolonged period of time given the very substantial costs to the Exchequer.

As part of Budget 2022, the Government agreed the future of EWSS including its graduated exit strategy. These arrangements were subsequently enhanced in response to the public health situation, namely the extension of the enhanced rates of subsidy for a further two months (across December 2021 and January 2022) and the reopening of the scheme for certain businesses as announced on 9 and 21 December 2021 respectively.

From 1 February 2022, for most businesses, including the taxi sector, the original two-rate structure of €203 per week and €151.50 per week will apply; for March and April 2022 the flat rate subsidy of €100 per week will apply and the scheme will end on 30 April 2022.

For completeness and in the event that persons in the taxi sector are operating as a sole-trader, I would clarify that subject to meeting the requisite conditions, a sole-trader’s business may be a qualifying employer for the purpose of the scheme, the same as is the case for any other employer. As was the case under the Temporary Wage Subsidy Scheme (TWSS), sole-traders are not able to claim the EWSS in respect of their own employment as they are not employees – and further, may not necessarily be paid via the payroll system unlike proprietary directors who are obliged to have PAYE operated on any payments made to them personally. 

Finally, as the Deputy will be aware on 21 January 2022, I announced that businesses availing of EWSS that were directly impacted by the public health regulations of December 2021 will continue to receive the enhanced rates of subsidy for the month of February and the graduated step-down in subsidy rates will be delayed by one month with such firms continuing to receive support under the scheme until 31 May 2022. The relevant public health regulations of late December last imposed an 8pm closing time on hospitality venues, including restaurants, bars and cafes, and reduced capacity on many indoor events, thus directly curtailing the ability of the businesses to trade.