Dáil debates

Thursday, 28 May 2020

Estimates for Public Services 2020 - Vote 37 - Employment Affairs and Social Protection (Revised Estimate)

 

2:30 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I leave that in your capable hands.

We are all aware we are living in unprecedented times. Covid-19 has taken many lives and has left grieving families in its wake. Loved ones have been left isolated and funerals have been left unattended. The toll this crisis has taken throughout the country and throughout the world is incalculable. As I speak here today, there are still people suffering the consequences of this dreadful virus.

The economic fallout from the Covid-19 outbreak too has been far-reaching. Every sector of the economy has been impacted. As it stands more than 1.3 million people are in receipt of some form of income subsidy from the State. Unemployment stands at around 28%. People and families in otherwise secure jobs have been plunged into uncertainty. Small business owners are frantically trying to come to terms with the new normal, whatever that turns out to be. From a point in January when we were anticipating a surplus and full employment, in less than six months we now have 28% unemployment and could see a deficit, as has been said, of some €30 billion.

Behind all of these figures, however, are people, families, households and businesses. The knock-on impact on mortgages, savings and loans is a huge unknown. We, as a State and a society, need to support people and to support small businesses. I am conscious of what the Taoiseach said, I think it was on the night of St. Patrick's Day, when he addressed the nation. He said he was confident our economy would bounce back, but that the damage would be significant and would be lasting. He said the bill will be enormous, and it may take years to pay for it. When he said that he said it on behalf of us all in this Chamber. We made a commitment to the electorate and to our constituents that we would ensure there was a pathway out of this and that every help and support would be given to them.

The two main interventions have been the pandemic unemployment payment and the temporary wage subsidy scheme. The pandemic unemployment payment has cost the State €1.7 billion, and has assisted more than half a million people. The temporary wage subsidy scheme has cost well over €1 billion, and has supported nearly half a million further workers. While these figures are eye-watering, there is no doubt that the schemes have proved effective and helped countless people get through this crisis so far.

It is clear these schemes need to extended. Changes of course need to be made, but the schemes have to be extended. Many businesses are still in lockdown. Many more have heavy restrictions in place and workers are still not permitted to return to work. These businesses and individuals need certainty, and they need these supports to be extended.

I would like to raise the crisis facing small businesses. As I already stated, small business owners and entrepreneurs throughout the country are frantically trying to find light at the end of the tunnel. They are trying to ascertain whether their businesses, which they have tirelessly created from scratch are viable in this new environment. Last week the Minister indicated that only viable businesses would be supported.

The exact quote read: "Some firms and some business models that were viable pre-Covid-19 may no longer be viable in the future, so the priority for this and the next Government must be to galvanise our resources to support companies and employers to be in a position to succeed in this new environment." While I agree with some of the sentiments, it is possibly the wrong time to be raising this. Business owners today need belief that they are going to get through this. They need the State to back them. Over time, some of these business will not survive, but informing business owners now that only viable businesses will be supported will take the wind out of many. For a start, we, in this Chamber, much less business owners on the ground, have no way of ascertaining which businesses are or are not viable and which ones can and cannot adapt. This will only emerge over time for we do not know how customers will react in the months and years ahead either.

Before asking some questions, I want to finish on this point. With the crisis being so pervasive and the economic fallout being so hard-hitting, it is clear we need a strong and stable Government. We are here discussing an Estimate brought forward by the current Government in its efforts to address the pandemic and the fallout associated with it over the last number of months. The list of legislative requirements that need to be addressed is increasing. The €2 billion credit guarantee scheme, for example, is sitting on the shelf awaiting legislation that cannot pass until a Government is formed. Every week we do not have a Government in place is a week that we cannot pass legislation and a week when the recovery of our country, society and economy await such legislation.

Yesterday, the Irish Fiscal Advisory Council published its report and, contrary to media speculation about what it might contain, it did not call for austerity. As the economy begins to recover and reopen, it argued that stimulus was required to increase employment and stimulate domestic demand. We very much welcome these sentiments. Strong and stable Government is needed to bring forward such a stimulus package at an early opportunity and a national recovery plan must be contained therein.

Can the Minister for Finance, Deputy Donohoe, confirm that the temporary wage subsidy scheme falls under the Vote for employment affairs and social protection in the first instance? The Estimate today for about €16 billion from the Central Fund and a further €11 billion from the Social Insurance Fund covers what has been spent to date by the Department and what is anticipated to be spent for the rest of the year. Does the Minister envisage that we will be back in a number of months bringing forward another Revised Estimate for employment affairs and social protection?

What are the assumptions underlying the figures published today with regard to the pandemic unemployment payment, PUP, and the temporary wage subsidy scheme? The original Estimate of the cost of these measures assumed a 12-week period of operation. By that calculation, they are both set to run out in a number of weeks. Does this Estimate assume that these measures will be extended and, if so, for how long and at what levels? If it is such that the assumption in relation to the figures is towards the end of the year, then there must be various assumptions made. Will the Minister elaborate on any such assumptions?

Where are we in terms of other Votes across other Departments? When will the four fifths rule impact on them? When is the health Vote likely to reach the point at which this House must be informed, as is the case in relation to the Department of Employment Affairs and Social Protection today?

Will the Minister outline to the House what legislation exactly is required in regard to the PUP? I am conscious of the talk there has been of anomalies and of part-time and full-time workers. We are conscious that maternity leave is not substituted for by the PUP once the people in that situation return to work. There are many other issues pertaining to the commitment to taper it off and for it to be in line with the return to work as outlined in the timetable published for the various sectors over the coming weeks and months. That is understood and we get the concept behind that. However, it is incumbent on the Minister to inform the House what legislation, having consulted with legal advice, is required. There is a contention that the hook on which these payments were hung initially, in terms of primary legislation, may not be strong enough to adhere to the recommendations the Minister now believes will be forthcoming. I heard the Minister for Employment Affairs and Social Protection say earlier that she will be coming forward with an indication of what changes she will make, having made the decision initially to include all applicants.

We accept and appreciate one had to act in haste initially to ensure people had that cushion necessary to be in a position to take advantage of the economy reopening, if and when it does. I hope that is sooner rather than later.

Comments

No comments

Log in or join to post a public comment.