STAY AND SPEND

THE Government cash incentive to support the hospitality sector was branded a ‘disgrace’ last night – as it excludes pensioners, the jobless and people on low wages.

‘Stay and Spend’ offers a maximum of €125 back in income tax credits to taxpayers who spend up to €625 in restaurants, pubs, hotels, and B&Bs.

It begins at the start of next month, and lasts until next spring. It offers cash back through the tax scheme, so people earning below the minimum wage and those on the dole will miss out.

As details of the scheme were unveiled yesterday, Bríd Smith TD denounced it as ‘disgraceful’.

She said: ‘They said it’s about having coffee with your kids or having a meal out. So are poor people not entitled to have coffee with their kids or bring them to McDonald’s and get something from the State?

‘It’s a disgraceful act of discrimination. Shame on the Green Party for allowing that to go under the radar. They should have had some kind of a voucher system. Whatever about the current system of claiming back taxes and whether or not that suits people, they have to give something to the poor as well.’

Denis Naughten TD said the scheme ignores older people. ‘While the principle behind the new scheme is welcome, a tax credit scheme is of no benefit to many older people who would traditionally have holidayed at home in the off-season,’ said the Roscommon-Galway TD.

‘Furthermore, this scheme discriminates against inland counties with small numbers of Fáilte Ireland approved accommodation providers.’

But Finance Minister Paschal Donohoe defended the scheme.

‘Anybody who is on three-quarters of our minimum wage will have enough of a USC liability at the end of the year for it to be worth their while applying for this,’ he said. ‘It is the case that there will be some people who might not have enough of an income tax liability at the end of this year or next year to make it worth their while actually accessing this scheme.

‘But on the other hand it does mean that up to 2.7 million people will be able to benefit.’

Asked why a voucher scheme was not introduced, the minister said: ‘There are two challenges with it. The first one is the logistics of how we would be able to get a voucher to everybody in our country and we would not have the ability to do that quickly. It could be the case that, in order to set up a system like that and have it in place, it would simply be too late. Many of our businesses, at the moment, need our support quickly.

‘And the other reason why this scheme is, I believe, far better is it’s not just about encouraging people to spend €125 or to spend a voucher, it’s about encouraging people to spend €625 and get up to €125 back. So it’s about encouraging additional spend and by encouraging additional spend, supporting a really important part of our economy, with so many important jobs in it at a time they need it,’ he said.

The scheme was launched yesterday by Taoiseach Micheál Martin, Minister Donohoe and Tourism Minister Catherine Martin. It is aimed at the hospitality sector during the offseason and will provide €125 back through the tax system per tax year, and where a taxpayer has A disgrace: TD Bríd Smith says poor lose out insufficient income tax liability to fully benefit from it, they can avail of the relief against their USC contributions. Taxpayers can submit receipts via the newly updated Revenue Receipts Tracker mobile app. Mr Martin said: ‘This Government is determined to support businesses across Ireland, which have been adversely impacted by Covid-19. While many sectors have taken a hit, the hospitality industry is undoubtedly one of the worst affected by the public health measures, which have had to be imposed to stop the spread of the virus.

‘We recognise the strain that restaurant owners, hoteliers, bar and café owners are under – and have taken steps to help them through this difficult period.’

And Minister Catherine Martin, of the Green Party, said the scheme would offer ‘a much-needed boost’ to the tourism sector during the off-season. ‘To maximise the benefit to the sector, I have asked Fáilte Ireland to commence a national campaign across radio and press next week to inform the general public about the scheme and help them understand how they can avail of the tax credit,’ she said.

‘Fáilte Ireland will also be helping tourism businesses get the message out to customers.’ christian.mccashin@dailymail.ie

‘Are poor entitled to coffee with kids?’