July stimulus package
Deputy Boyd Barrett argued the promised July stimulus would not help those on the lowest incomes, and Deputy Murnane O'Connor and Deputy Ó Laoghaire raised supports for tourism, hospitality, schools and education reopening. The Tánaiste said Cabinet would agree and publish the package that afternoon, with legislation to follow next week, and said all the issues raised would be considered.
For some weeks the Government has been promising the famous July stimulus, the details of which we will get soon, with legislation presumably to be discussed next week. Is it not the case that the term "stimulus" is completely a misnomer when what was leaked today and was in the air for the last number of days is that there will not be a stimulus for some of the people on the lowest incomes and some of the people who have been hardest hit by loss of income and unemployment, caused not by any fault of their own but because of the impact of Covid? The plan now is not to stimulate but to slash the payments of people who have lost their jobs and whose incomes have been reduced and to cut progressively the pandemic unemployment payment over the coming months. How is cutting the incomes of people who have lost jobs and incomes a stimulus?
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How is that fair to people who have already suffered hardship as a result of the pandemic?
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The wage subsidy scheme and the pandemic unemployment payment were welcome supports. I appreciate that these supports will continue as we move towards normal living with the coronavirus but I hope that the stimulus package to be announced today will provide supports for tour guides, small hospitality businesses which only ever operate in June, July and August and as such were not open in February to qualify for these supports. Will the wage subsidy scheme and rates moratorium continue into 2021? Private bus operators surely should also be included.
As we ask more people to continue to work from home the cost for many of setting up a workspace in the home is a barrier. It is vital that when working from home people are able to separate work from personal life for wellbeing. Is it proposed to provide an increase in tax relief for those working from home, besides giving them proper broadband?
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The Deputy is getting value for money. She was supposed to ask one question on one topic. I call Deputy Donnchadh Ó Laoghaire on the same issue.
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The Tánaiste's earlier response to Deputy Pearse Doherty in regard to education was not much of an answer. Surely he knows a bit more about the July stimulus. Reopening schools will require investment. Will the July stimulus contain money for additional space and to ensure every school has hot water and adequate personal protective equipment? When will we know more? A Revised Estimate was introduced with no additional money for the Department of Education of Skills. Will money be provided in the July stimulus to be announced this afternoon to ensure that all schools can reopen? We need staff and hygiene but we need money particularly.
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The Cabinet will meet in Dublin Castle this afternoon. At that meeting, all things going to plan, the Government will agree the July stimulus package and publish it this afternoon. The package will, of course, require debate in the House, including legislation next week. Until the decision is made by Cabinet I cannot reveal the contents of it but all of the matters that Deputies have raised will be considered.
Deputy Boyd Barrett asked what is a stimulus. Stimulus is the Government pumping money into the economy. That is exactly what we are doing. We will pump about €30 billion into the economy this year. The stimulus package is only part of that. We are taking in about €50 billion in taxes and spending €80 billion. Therefore, €30 billion is being pumped into the economy. That is a stimulus. The plan was to end the wage subsidy scheme and the pandemic unemployment payment around 10 August but that will now not be the case. They will be extended and there will be a further stimulus but we will set out how they will be phased out because they cannot last forever. People appreciate that. The best way to help people is to get them back to work, not to keep them on welfare forever, which is a very different type of policy that I do not support.