EWSS cut and hospitality impact
Deputy Doherty criticised the reduction in EWSS support as a blunt cut that would hit hospitality and tourism hardest. The Taoiseach said the scheme is economy-wide and must be kept under review, noting strong uptake in hospitality.
Today the Government is cutting the rate of payment available to employers under the employment wage subsidy scheme, EWSS. It will be cut by a quarter for workers whose weekly wage is below €203 and by 40% for other workers. This is a one size fits all cut. We know that the recent public health restrictions are affecting certain sectors more than others. The public guidance is to work from home and reduce social contacts. Thankfully people are responding to that public health guidance. The impact of it is being felt particularly in the hospitality and tourism sectors. We can see the images on social media from this city and elsewhere of empty restaurants and all the rest, yet these supports are being cut as of today. In the case of jobs in the context of such high rates, December is what is needed to carry the hospitality sector through in January and February. Will the Government not suspend the reduction in these supports until the end of the year?
Comment on this
I agree with the Deputy that it is commendable that the public have responded to the public health measures of recent weeks in terms of reducing socialisation and general congregation. That does have an impact on certain sectors. About a quarter of employers on the EWSS are in hospitality while about 40% of employees are in companies in the hospitality sector. The EWSS is an economy-wide scheme which applies to all sectors, some that are doing very well right now. It has been the most successful intervention the Government has introduced, the objective being to keep jobs intact with companies so that when better times arrive they can be very viable and rebound. That has worked since March. We have always stepped up to the plate in terms of intervening in the economy to protect jobs. In that context we are keeping this under continuing review and will revert back.