The Irish government is announcing its long-awaited stimulus plan, a package of about €5 billion on capital spending, welfare and employment supports, grants and tax cuts.
Taoiseach Micheál Martin, Tánaiste Leo Varadkar and Minister for Transport and Climate Action Eamon Ryan are outlining the main details of the financial package in a joint press conference in Dublin Castle.
Mr Martin described it as an “unprecedented package” of measures to help stimulate the economy.
He said: “No-one should be in any doubt about the fact we are not returning to pre-March reality.
“The economic recession is the most rapid and dramatic ever recorded.”
Mr Varadkar said the package is worth more than €5 billion.
“We already pumped billions of euros into the economy and we know they have made a difference and we have made significant progress in restarting our economy,” he said.
Mr Ryan said the package will support those whose job is most at risk.
“Measures to support our business can help give certainty to employers and employees,” he said.
“Ireland’s economic needs to be sustainable and durable as well, not just from an economic and social point of view but also from an environmental and climate perspective.”
Here is a summary of the main points so far.
- The Help to Buy scheme for first-time house buyers is to be beefed up for the rest of 2020. Buyers will be able to reclaim up to 10 per cent (a maximum of €30,000) of the price of a new build, up from 5 per cent/€20,000
- VAT will be cut from 23 per cent to 21 per cent for six months from September 2020 to February 2021
- The pandemic unemployment payment is to be extended until next April, but will be closed to new applicants in September. It comes at an estimated cost of €2.2 billion. Payment rates will be gradually tapered based on prior earnings
- A new “Employment Wage Support Scheme” will succeed the temporary wage subsidy scheme, and run until April 2021
- There will be a special 0% interest rate for first year of SME loans
- The waiver of commercial rates has been extended until end-September 2020
- The restart grant for enterprises is being extended and expanded
- €2 billion has been set aside for a Credit Guarantee Scheme for businesses
- A “Stay and Spend” scheme will allow consumers to claim a tax refund of up to €125 when they spend €600 on domestic tourism
- Extra funding for more cycleways and greenways
- €200 million investment in training, skills development, work placement schemes, recruitment subsidies, and job search and assistance measures
- 35,000 extra places will be provided in further and higher education
- Further supports for apprenticeships
- Cuts to Capital Gains Tax will not form part of the package after the proposal did not get the backing of the Green Party,according to The Irish Times
This is a developing story. More to follow…
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