Micheál Martin: We will look at 'sector-specific' Covid-19 supports  

Micheál Martin told the Dáil that "sector-specific" supports are needed. File Picture.

The Taoiseach says the government is examining restoring full pandemic payments and other subsidies for the arts and hospitality sectors.

The sector, which includes musicians, actors, theatre, bar, restaurant and hotel staff, is widely expected to be the last to return to pre-Covid levels of activity.

The most recent economic forecast states that Ireland could reach 16% unemployment, worse than in the last financial recession, and young people will be hit hardest.

Labour leader Alan Kelly, speaking during leader's questions, predicted the state will see continuous local lockdowns going forward. Dublin and Donegal are currently under localised restrictions and more counties are expected to follow suit. This has thrown hospitality staff back into unemployment, just weeks after some returned to work after several months. 

The rates of Pandemic Unemployment Payment were cut this month, with many charities warning it could lead to increased poverty.

Alan Kelly believes the state will see continuous local lockdowns going forward.

"Will you consider the sector for full restoration of the pandemic unemployment payment?," Mr Kelly asked the Taoiseach, Micheál Martin.

"If you look at food and beverage in level three, we can't serve food outside in November, December, January.

"I'm asking for sectoral changes in the budget and to consider what extra can be done in local lockdowns.

We have to plan ahead because I don't believe we can get through the winter, we'll lose a whole sector if we don't plan for the next six months in the budget

Mr Kelly suggested a social insurance program like Germany's short-term work scheme, where employers reduce their employees’ working hours instead of laying them off, the government normally provides an income “replacement rate” of 60%.

"You're correct in identifying the hospitality sector being as ones particularly affected by Covid-19," the Taoiseach said.

"It is no one's fault.

I accept that a variety of supports along with those offered already. We will have to look again at more sector-specific or how we can protect as peoples many businesses in the tourism sector, to be viable and intact, that is a challenge we are working on that

"We accept the impact and will have to look at other ways to help the sector and preserve employment because it is the one sector taking the greater hit than others."