Irish income continuance scheme looks set to be approved

Irish income continuance scheme looks set to be approved

This morning’s Irish Times states that the Irish government may introduce bans on non-essential travel, commercial and social activity. This would represent an additional response to the measures already in place.

The National Public Health Emergency Team (NPHET) will make recommendations to cabinet today and these will inform the decisions of cabinet. It is also expected that the cabinet will sign off on an income continuance plan for workers impacted by the economic impact of the coronavirus. Like what Goodbody Stockbrokers noted yesterday, the scheme would replace 70%-80% of the income lost by workers in firms that have seen more than 25% fall in revenue due to the crisis.

While the scheme may be announced today, it will take several weeks to be set up and will be administered by the Revenue Commissioners.

According to Goodbody Stockbrokers, "Given the moves across Europe, but particularly in the UK last night, we would not be surprised by an imminent  announcement on further curbs to prevent social gatherings taking place. This will place a further burden on economic activity in the context of it already being devasted over the past two weeks. This provides even more reason, if it is required, to prop up consumers and maintain the link between employees and employers through the rapid deployment of an income continuance scheme."