Taoiseach says maintaining pandemic supports for ever ‘not tenable’

Taoiseach Micheál Martin has said that maintaining pandemic supports forever “isn’t tenable” but that no decision has been taken to cut them at the end of June as yet.

Mr Martin suggested that the nature of supports to people and businesses whose livelihoods have been hit by the Covid-19 crisis will change and that extra help will be provided to those in the hospitality, tourism and entertainment sectors.

However, he defended Government interventions from what he claimed was an attempt by Sinn Féin TD Pearse Doherty to create the impresssion that "massive cuts are on the way".

During an appearance at the Oireachtas Finance Committee Mr Martin also said that the cautious approach to reopening being taken by the Government is aimed at preventing another surge in the virus.

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He said he believes: “We are in a good position and as vaccination increases we hope we can avoid that scenario”.

Intention

Mr Doherty asked if it’s the Government’s intention to begin cutting the rate of the Pandemic Unemployment Payment (PUP) from the end of June - its current expiration date.

The Taoiseach said: “No decision has been made to cut anything at the end of June yet” and he said cutting off supports too early “could create a very negative affect on the economy”.

Mr Martin said that as the economy reopens the number of people on the PUP will naturally decline as they return to jobs in construction or retail adding: “What we have to do then is re-tailor supports over time and also then to look at how we can help some sectors to restart and give them added support in the... rebooting phase.” He highlighted the hospitality, tourism and entertainment sectors for additional help.

Mr Martin said: “As things presently stand we’ve given clarity that to the end of June the range of supports we currently have will stay in play.

“By the end of June we hope to be in a much better position in relation to Covid and that sectors of the economy will have restarted so that the dependence on those support mechanisms will have reduced”.

Projected

Mr Doherty suggested 180,000 are still projected to be unemployed because of the pandemic in the third quarter of the year and he said that the Government’s Stability Programme Update says the PUP will not exist in 2022. He asked if Mr Martin was denying it is to be phased out.

.Mr Martin accused Mr Doherty of seeking to create the impression that “there’s massive cuts on the way” and argued that “the story of this government is has been unprecedented intervention and support of income and of jobs.

“And we intend to maintain that theme of support in jobs and incomes.

“Obviously we hope in 2022 to be well out of this covid experience... that would mean a different type of situation then in terms of the interventions by Government in terms of both income supports and in terms of supporting companies and employment.”

Mr Martin said the main focus of the forthcoming National Economic Recovery Plan will be getting people back to work and he highlighted whow young people in particulalr have suffered during the pandemic.

Mr Martin said: “therefore there might be a need to re-tailor supports for people.”

He added: “The idea that you keep the same supports going forever isn’t tenable either...

“If we get out of this Covid-19 grip and the influence it has on us therefore we’ll have to look at new areas that we could allocate expenditure particularly the sectors that have suffered more than most over the last 12 months.”