Full restoration of wage subsidy scheme needed to navigate new restrictions, says Ibec

The Restaurants Association of Ireland said that the meeting with Taoiseach Micheál Martin, Tánaiste Leo Varadkar, Minister Michael McGrath, and Minister Catherine Martin was "productive and constructive".

Ibec has said full restoration of the Employment Wage Subsidy Scheme (EWSS) is needed to sufficiently help businesses through the lastest restrictions.  

The group which represents Irish businesses has said the business community is growing increasingly frustrated with what it perceives as ineffective supports being offered to businesses to navigate Covid challenges.

In a letter to the Taoiseach and key Cabinet ministers issued this afternoon, Ibec said that many of its members across a broad range of sectors of the economy are now experiencing disruption and substantial lost business as a direct result of Government’s latest Covid restrictions.

Ibec added the repurposing of the CRSS alone will not be sufficient as a business support and a full restoration of the EWSS for the duration of this period of restriction "is the most effective and fair policy response which can assist those businesses and employees most negatively impacted, across all sectors of the economy."

Commenting on the letter, Ibec CEO Danny McCoy said: “Last week’s announcement of further restrictions will inevitably lead to job layoffs over the coming days and weeks in the most vulnerable sectors. 

"Our members in the impacted sectors are adamant that the supports announced last week simply do not go far enough.

“Government supports throughout the Covid crisis have been highly effective in supporting impacted businesses and we see no logic, fiscal or otherwise, for curtailing these supports at a time when additional restrictions have been introduced.

“Now is not the time for reticence. We know from the recent economic data that the budget deficit for 2021 is likely to be about €10 bn less than was expected in the Spring. 

"Government has the resources to do the right thing and must deliver a much-needed safety net for those concentrated pockets of businesses struggling in the face of ongoing Covid restrictions," he said.

PUP returns for those who have lost employment

The Pandemic Unemployment Payment has been reinstated for those who may have lost their jobs due to the most recent round of Covid restrictions.

The decision comes after a meeting between Cabinet members and the hospitality industry.

The upper payment will be paid at €350 but overall payments will be linked to previous income. There will be five rates, with those on €350-€400 receiving €300 and a lower €150 rate for those who had been earning less than €151.

A statement from the Department of Social Protection said: "This limited re-opening of PUP is specifically designed to support those workers who lose their employment as a direct result of the introduction of the new restrictions from Tuesday, December 7.

"The Department of Social Protection will use Revenue data to verify employment status for all applications.

"Although applicants should apply online, they may be required, as is the case with other work-related payments, to attend an Intreo centre to present evidence of their employment status."

Social Protection Minister Heather Humphreys said that the restrictions on live events and hospitality which come into effect from tomorrow would impact jobs, so reopening access to the PUP was the right thing to do.

"If you lose your job because of restrictions, we are here to help you. That means that anyone who loses their job can apply tomorrow."

She said that if people could "genuinely show" that they had been laid off due to the restrictions, they would have their applications accepted. She said that supports were there for those who might lose hours. Ms Humphreys added that the payment would not be backdated. She said that the scheme was being kept under review.

53,000 people are currently on the PUP, most of them for over 12 months, they're probably wondering what their situation is. They will continue to get the PUP at their current rate.

"If restrictions are in place, we are there to support people."

Ms Humphreys added that "this is not where any of us wanted to be".

"However, reopening PUP for those directly impacted will provide vital support during these difficult times."

The Restaurants Association of Ireland said that the meeting with Taoiseach Micheál Martin, Tánaiste Leo Varadkar, Minister Michael McGrath, and Minister Catherine Martin was "productive and constructive".

"The main focus of the meeting was to discuss the Business supports for Restaurants, Pubs and Hotels in term of criteria regarding the CRSS (COVID Recovery Support Scheme.) 

"The Hospitality sector outlined that the current 50% threshold criteria excluded the vast majority of Hospitality of Businesses from availing of the scheme at a vital time. Government said they would look at the criteria for CRSS and indicated that the cap of €5000 would be revisited."