Mayo TD wants uncertainty over wage subsidy scheme addressed

A Mayo TD is backing calls for the employment wage subsidy scheme (EWSS) to be extended beyond March 31.

Deputy Alan Dillon said almost 1,200 businesses in Mayo availed of the EWSS during 2020 and it is serving as a vital support for those businesses in a wide range of sectors that have had to close their doors for significant durations during this pandemic.

However, concerns are emerging due to uncertainty as to whether it will be extended in its current form beyond late March.

Said Deputy Dillon: "An issue being raised with me increasingly over recent weeks has been the extension of the EWSS beyond March 31.

"I appreciate the Finance Minister Paschal Donohoe's statement that there will be discussions on this matter.

"Both employers and employees are fearful that they may lose the enhanced rates which are in place until that date.

"I urge the minister to extend the scheme for as long as possible and until the vaccination roll-out programme has reached a critical mass and we can avoid a cliff edge.

"There were early complaints about the scheme arising from issues such as the processing of wage subsidy payments to employers taking up to six weeks.

"I understand that the revised payment schedule is now, thankfully, ensuring speedier delivery. This, in turn, will support and boost cash flow within businesses."

Minister Donohoe said that the scheme may be extended until the end of June if required, subject to procedural conditions.

"It is likely that some form of continued support will be necessary to the end of 2021 to help to maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible," he added.