Ruairi Ó Murchú (Louth, Sinn Fein)
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260. To ask the Minister for Finance when the employment wage subsidy scheme and the Covid restrictions support scheme will be reviewed; and if he will make a statement on the matter. [2657/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government have stated on many occasions that there will be no cliff edge to supports for employers but we have also been clear that the Employee Wage Subsidy Scheme (EWSS) and COVID Restrictions Support Scheme (CRSS) cannot run indefinitely, nor is it sustainable to continue for a prolonged period of time given the very substantial costs to the Exchequer.

In relation to EWSS the scheme was introduced to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS is an economy-wide scheme that operates across all sectors.  

In money terms, the overall support provided to-date (17 February) by EWSS is just over  €7.46 billion comprising direct subsidy payments of €6.45  billion and PRSI forgone of €1.01 billion to 51,900 employers in respect of over 715,300 employees.

Since the introduction of the scheme, the EWSS has been under active consideration and review in terms of its responsiveness, cost and impact. As part of Budget 2022, the Government agreed the future of EWSS including its graduated exit strategy. Since then, consistent monitoring of the scheme continued and the scheme was 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, 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.

Following a further assessment, I announced on 21 January 2022, that businesses availing of EWSS that were directly impacted by the public health regulations of last December, would continue to receive the enhanced rates of subsidy for the month of February and the graduated step-down in subsidy rates would be delayed by one month with such firms continuing to receive support under the scheme until 31 May 2022.    

Turning to CRSS, the scheme was introduced as 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.  The CRSS was extended to 31 January 2022 in the Finance Act 2021.   

The scheme was available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits of which are chargeable to tax under Case 1 of Schedule D, from a business premises that is subject to restrictions, set out in the relevant legislation, that prohibit or considerably restrict customer access. The legislation requires that a claim must be made no later than eight weeks from the date on which the ‘claim period’ commences. 

As the Deputy will be aware, from 20 December 2021, the Government introduced certain restrictive measures for businesses within the hospitality and indoor entertainment sectors. Following the announcement of these restrictions, the CRSS was reviewed with a view to expanding the supports available to businesses during the period of restrictions. Businesses operating within these sectors, who would ordinarily operate evening and night-time trading hours, were considered to be significantly restricted from operating for the purposes of the CRSS and were eligible for support under the scheme where they meet the eligibility conditions.  The Government also agreed that the turnover reduction criteria will be increased from no more that 25% of 2019 turnover to no more that 40% of 2019 turnover, and that new businesses established between 13 October 2020 to 26 July 2021 would be eligible to apply for the scheme. To date a total of 25,600 unique premises have claimed payments under the scheme amounting to €727 million. 

It is my intention that the legislative aspects associated with the revised arrangements for CRSS and EWSS, outlined above, will be addressed by primary legislation in the coming weeks. In the meantime, the Revenue Commissioners are operating the revised arrangements on an administrative basis pending the legislation.  

Finally, work is underway at senior official level on an inter-departmental basis to review the experience from the introduction and operation of Covid-19 emergency income supports paid to/in respect of people whose employment was impacted due to public health restrictions, and to identify lessons learnt.  My Department is represented on the relevant group which is chaired by the Department of Social Protection and also includes representatives from the Departments of Public Expenditure and Reform and Enterprise Trade and Employment and from the Office of the Revenue Commissioners.