'No way' to force profitable companies to repay State supports: Donohoe

Finance minister says: 'I want these companies to recover'

Wed, 22 Dec, 2021 - 09:32

Paul Hosford, Political Correspondent

Finance Minister Paschal Donohoe says he does not have the legal ability to force companies which made profits while receiving State supports repay the money.

Tánaiste Leo Varadkar last week said that companies that availed of Covid-19 wage subsidy payments and which were in a position to pay substantial dividends should repay the supports after it emerged that a number of businesses paid dividends to shareholders while the State was helping them pay wages.

Paschal Donohoe told RTÉ's Morning Ireland that entry into the EWSS scheme did not bar companies from making profits and Revenue could only intervene if companies had wrongly entered the scheme.

"It's important to put this in context — 51,800 employers have been on the employment wage scheme, 699,000 workers have been on the wage subsidy scheme at different points since the pandemic began," he said.

It has been an immensely successful policy of helping keep work within our country and helping our country recover.

"Now, I do accept that during that period, some companies have been profitable, but they have been profitable because they have been able to continue to trade while receiving the employment wage subsidy scheme and there's a certain level of profitability that I do accept will be maintained by companies around the scheme.

"And ultimately, I want these companies to recover. I want them to be able to continue to employ people without needing a wage subsidy scheme."

Mr Donohoe said that it is his intention to end the scheme in April but that any changes to the entry requirements or profit rules will not apply to companies which enter the scheme this week.

He said that he was not in a legal position to chase those companies which paid dividends to shareholders.

The reason I don't have the legal means to deal with is that I wanted to have a scheme in place that would lead to employers being able to keep people at work.

"And as they do that, I did accept that some companies would be likely to be making some profits. If, for any reason, we look at the continuation of this scheme into the medium term, which I hope will not happen, that of course is a matter that we need to reconsider."

Mr Donohoe said that the only changes will be made to the scheme where he is confident that it will not hamper the viability of the businesses.

Mr Varadkar last week said the Revenue Commissioners will pursue any instances where a business fails to qualify for the scheme.

“Whatever the reason, why the question of what dividends a company may or may not be in addition to pay shareholders is a matter outside the current legislated remit of the scheme,” he said.

Asked about the current level of Covid restrictions, Mr Donohoe said that the Government is monitoring the situation "on a daily basis".

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