Seán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Fleming, to the Chamber. I congratulate him and wish him well in his role. I know with his background and experience that he is very well suited to a financial brief. I look forward to working with him. The coronavirus does not discriminate between countries or nations, just as it does not discriminate in terms of the individuals and families that have been impacted by this dreadful virus. Few have lived through such an unprecedented crisis as that caused by Covid-19. Such is the scale of the crisis and the sheer impact it is having on our country and other countries of Europe that a collective response is needed from the member states of the European Union.

The Bill before us today will empower our Government to participate on behalf of the people in the collective response to Covid-19. It achieves two objectives. First, it will enable the State to take part in the European instrument for temporary support to mitigate unemployment risks in an emergency, SURE. Second, it will empower the State to participate in the European Investment Bank's pan-European guarantee fund. Through this fund, financial supports will be available to Irish businesses and organisations to help tackle the enormous challenges that Covid-19 has brought. The current Government has continued the work of the previous Government in terms of introducing and maintaining supports to business and workers. Supports include the Covid-19 working capital scheme, the future growth loan scheme, the restart grant, an online retail scheme, the pandemic unemployment payment and the temporary wage subsidy scheme among others. They are all helping businesses, workers and households to weather this unparalleled crisis.

However, in the same way that Covid-19 transcends national borders, our armoury of supports should do the same. As regulation 672 of 2020 notes, this is an exceptional situation which is beyond the control of EU member states, has immobilised a substantial part of the workforce and has led to a sudden and severe increase in public expenditure in areas including unemployment and business supports, as well as health and social care. The European Council agrees that the SURE instrument will help all member states respond in a co-ordinated, rapid and effective manner and in a spirit of solidarity. The financial assistance that will be provided through the SURE instrument will not be available until all member states have signed the guarantee agreement. This underpins the solidarity of this support, which will provide up to €100 billion for all member states. Section 4 of the Bill states that Ireland's contribution to the SURE instrument will be over €483 million and in that context, coupled with the longevity of the commitments involved out to 2053, it is important that this Bill be enacted with the security such obligations demand.

Ordinarily, regulations have direct effect and do not need to be transposed. Given the nature of this financial obligation and the commitments being entered into, it is reassuring that the Oireachtas is the body empowering the Minister for Finance in line with our Constitution to enter into this guarantee agreement. The pan-European guarantee fund will see us contribute up to €167 million to another central fund designed to support viable businesses and organisations. The fund is structured in such a way as to be available only to those member states which join.In Ireland, the fund will be administered by the SBCI, which already administers several supports from Departments for businesses, particularly SMEs.

The evolving and uncertain path of the coronavirus is compounding difficulties, particularly in certain sectors. The hospitality, tourism, arts and culture sectors, among others, have, in effect, been decimated by the Covid-19 virus. I have spoken to business owners from various sectors, including the owners of SMEs and larger companies in Galway. I have heard from workers in the arts and culture sector and operators in the hospitality sector. These sectors are of crucial importance to the social and economic well-being of Galway and the rest of the west of Ireland. Everyone to whom I have spoken understands the seriousness of the pandemic and the dangers posed by the virus, including its threat to life. If the price for keeping citizens safe is the continued curtailment of economic activity, then we need to expand the supports available.

The Bill, through the SURE instrument and the EIB guarantee fund, will broaden the supports that Ireland has already introduced. It will facilitate greater certainty and reassurance. I expect the Government to grasp the opportunities presented and make use of the SURE instrument and the guarantee fund. I expect it to supplement and expand our national supports to include supports for seasonal workers, workers in tourism and hospitality and members of the arts and creative community. I expect that it will access the guarantee fund in order to provide greater financial supports for businesses and organisations the support of which directly impacts on the communities in which they operate. The fact that the State has been able to allocate resources that borrow funds for supports reflects the careful and prudent management of the economy in recent years. However, just as with our efforts to suppress Covid-19, we cannot be complacent. Borrowing will not be an option in the longer term and we must be ready to access the EU supports for the good of businesses and workers across the country.