Ireland’s Minister for Finance, Paschal Donohoe, has suggested that some companies in receipt of taxpayer-funded wage subsidies from the State’s flagship €5.7 billion business support scheme should repay their subsidy if they “didn’t need it as much as they thought they did”, The Irish Times reports.
Mr Donohoe made the suggestion in the Dáil in response to a question from Labour TD, Ged Nash, who criticised the Government for not attaching more stringent conditions to the Employment Wage Subsidy Scheme (EWSS).
Mr Nash referred to a December 15 story in The Irish Times about O’Flaherty Holdings, a company that distributes Mercedes Benz in Ireland. O’Flaherty Holdings claimed almost €1.8 million in wage subsidies last year then paid a similar amount in a dividend to an offshore company.
The Labour TD said “the interests of the taxpayer had not been looked after” in that case and he asked the minister if he would, as repeatedly advised, make changes to the scheme to prevent issues such as qualifying companies paying dividends.
Mr Donohoe said he believed the “vast majority” of companies that claimed EWSS payments did need them but said that he intends to “consider the issue that came to light today”.
He said some companies had already chosen to pay back subsidies and he wanted to “ask other companies” to consider doing the same.
Earlier on December 15, the Department of Finance reportedly said it will examine whether a change in the law is required to stop companies that receive taxpayer-funded Covid subsidies from paying dividends to shareholders.
The department confirmed it will consult with the minister and then reassess the legislation underpinning the EWSS to see if it is “necessary or appropriate to go further and legislate for further conditionality on the question of distribution of profits” at cash-rich companies claiming subsidies.
Fianna Fáil TD Jim O’Callaghan called for these companies to be banned from receiving further taxpayer supports.
Source: The Irish Times
(Quotes via original reporting)
Ireland’s Minister for Finance, Paschal Donohoe, has suggested that some companies in receipt of taxpayer-funded wage subsidies from the State’s flagship €5.7 billion business support scheme should repay their subsidy if they “didn’t need it as much as they thought they did”, The Irish Times reports.
Mr Donohoe made the suggestion in the Dáil in response to a question from Labour TD, Ged Nash, who criticised the Government for not attaching more stringent conditions to the Employment Wage Subsidy Scheme (EWSS).
Mr Nash referred to a December 15 story in The Irish Times about O’Flaherty Holdings, a company that distributes Mercedes Benz in Ireland. O’Flaherty Holdings claimed almost €1.8 million in wage subsidies last year then paid a similar amount in a dividend to an offshore company.
The Labour TD said “the interests of the taxpayer had not been looked after” in that case and he asked the minister if he would, as repeatedly advised, make changes to the scheme to prevent issues such as qualifying companies paying dividends.
Mr Donohoe said he believed the “vast majority” of companies that claimed EWSS payments did need them but said that he intends to “consider the issue that came to light today”.
He said some companies had already chosen to pay back subsidies and he wanted to “ask other companies” to consider doing the same.
Earlier on December 15, the Department of Finance reportedly said it will examine whether a change in the law is required to stop companies that receive taxpayer-funded Covid subsidies from paying dividends to shareholders.
The department confirmed it will consult with the minister and then reassess the legislation underpinning the EWSS to see if it is “necessary or appropriate to go further and legislate for further conditionality on the question of distribution of profits” at cash-rich companies claiming subsidies.
Fianna Fáil TD Jim O’Callaghan called for these companies to be banned from receiving further taxpayer supports.
Source: The Irish Times
(Quotes via original reporting)