July stimulus: Pandemic payments due to be extended

Public Expenditure Minister Michael McGrath said a Cabinet sub committee on Monday will consider the value of the July stimulus package, expected to range between €5bn and €6bn.

He said the stimulus roadmap would be about protecting existing jobs and getting people back into employment.

“What we want to ensure is that what is announced can be operable quickly, that it can be put into effect with the minimal amount of fuss. It has to be of a scale that makes a real difference.”

Government sources confirmed the temporary wage subsidy scheme and pandemic unemployment payment would be extended, at least until next year and possibly the spring.

But the pandemic payment is likely to be phased down further from the top rate of €350, while those on between €200 and €250 a week prior to the virus are also likely to see reductions.

Mr McGrath told RTÉ that the Government needed to be “sensitive” to THE needs of those on the pandemic unemployment payment and that many employers “would not be viable” without the wage subsidy scheme.

A key target of the plan will focus on shovel-ready projects, such as greenways and construction, that can nurture immediate employment. The blueprint for a new round of retrofitting homes is also set to be in the plan.

Parallel to projects will be a focus on retraining, said sources. This will see a significant investment in community projects and apprenticeship schemes.

Other measures that will form part of the July stimulus package will include a freeze on business loan repayments for 12 months and cheaper interest rates for loans. There is also set to be a further extension of the rate waiver scheme for business while the hospitality sector, including hotels and restaurants, will benefit from Vat rebates customers will get for using their services.

Another decision this week will be on extending the ban on rent rises and evictions, which had been due to expire.

Instead, Housing Minister Darragh O'Brien is pushing for the bans to be prolonged until at least August. It is understood that he had wanted the bans pushed out until October. However, due to opposition from Paul Gallagher, the attorney general, about this impacting on the constitutional rights of landlords, legislation will have to be passed for a longer extension of tenant protections before the Dáil summer recess.

Meanwhile, Minister for Higher Education Simon Harris will seek €100m to assist the sector with Covid-19-related costs.