Victor Boyhan (Independent) | Oireachtas source

I welcome the Minister of State and I congratulate him. He is straight into the job so it is a tough day for him. I also want to take this opportunity to congratulate the Minister for Finance, Deputy Donohoe, who is chair of the Eurogroup. The Eurogroup plays such a significant part in what we are talking about today and I wish him well as he embarks on what will be a challenging and demanding job, coupled with his work as Minister for Finance.

The Covid-19 pandemic constitutes an unprecedented economic and social challenge for Europe and the wider world. The European Council called on the Eurogroup to develop proposals to tackle the social and economic consequences of the pandemic and to develop a comprehensive package, amounting to €540 billion as we know. This was agreed by the Eurogroup, as was said earlier, and endorsed by the European Council. I understand that this package includes three safety nets to minimise the short economic consequences of the Covid-19 crisis for workers, business and member states. Those three elements are as follows: SURE, which is the instrument to protect jobs and workers and which is critically important; the EIB pan-European guarantee fund; and the pandemic crisis support instrument of the European Stability Mechanism, ESM. Could the Minister of State address this issue of the ESM pandemic crisis support instrument because I cannot quite get that part of this legislation? He might tease out some of that or perhaps provide us with some more information at a later date, particularly on that aspect of the Bill. This Bill relates to SURE, as has been outlined by the Minister of State and by previous speakers, as well as to the EIB's pan-European guarantee fund. SURE is primarily intended to support the member states, with efforts to protect workers and jobs and to support some healthcare measures.

There has been a recurring theme here today about recovery, solidarity and social cohesion and they are important matters. It is about all member states stepping up to the plate. There are important key themes and issues that previous speakers have spoken about and it is important that we always remember those issues. I note that this is the first legislation the Department of Finance has brought forward since the formation of the Fianna Fáil, Fine Gael and Green Party coalition Government. That is important and the legislation is clearly a priority for the Department.

I support the Government's wish to have this important legislation passed as soon as is practically possible and for it to receive the early signature of the President, as is the desire of the Government. I understand that SURE cannot be accessed by any member state until all member states have signed the guarantee agreement.The Minister of State might confirm that. I also understand that the Commission needs all the member states' guarantees in place in order to access the bond markets on the possible terms. Again, the Minister of State might confirm that.

I have a few questions. Is it the case that most other member states will be ready to sign the SURE guarantees by the end of July? I understood that half of them would be now in place but there is some suggestion that the process in this regard might have slowed. We need to have assurances on that and the Minister of State might confirm the position. We know that Ireland cannot participate in the EIB pan-European guarantee fund unless the Financial Provisions (Covid-19) Bill is enacted. Clearly, that is important and I hope that we will get it done today. It is not ideal to have all Stages of legislation being taken by the House in one day but these are challenging and difficult times. I assure the Government that it has my absolute support on the Bill as it currently stands. The Bill is complex but clearly set out, and we have to proceed. SURE presents an opportunity for Ireland to show solidarity, a matter on which Senator D'Arcy elaborated. The key word is "solidarity" when it comes to Covid-19 and member states response to it. This is a challenge in the context of member states to showing solidarity. I hope that everyone will step up to the plate in that regard.

Irish business and public sector bodies cannot apply for financial support from this fund until Ireland has signed the contribution agreement with the EIB. That is clearly set out in the memorandum of understanding and the documents supplied to us.

It is my understanding that SURE is temporary in nature in that the duration and scope is limited to tackling the consequences of the coronavirus pandemic. I understand that SURE would come with safeguards to ensure fair and equitable access to the funding from the member states. I also understand that the loans will be underpinned by a system of voluntary guarantees from the member states. Will the Minister of State elaborate on those matters if he has an opportunity to do so because I believe they are important? Each member state will be expected to contribute to the guarantee in proportion to its relative share in the total gross national income of the Union. That is important. To focus on Ireland briefly, it is my understanding that it has been suggested that the country will have an approximate liability of €483 million. Is that the Minister of State's understanding? We need to clarify that matter.

On the types of national schemes eligible under SURE, what schemes are available to Ireland? What other schemes are available? What is the potential to tap into those schemes? We need to hear more about that. The objective of SURE investment is to aid member states to keep people in jobs, as we said earlier, and certain occupational health-related measures. That is important. As of 2 July, the accumulative value of payments made to employees under the scheme was €1.878 billion. That is a phenomenal amount of money. Can the Minister of State provide assurances that our temporary Covid-19 wage subsidy scheme will be eligible for loan support in the context of these matters?

I have a number of other issues to raise with regard to the various sections. I recognise that the Minister of State is new to his brief and I do not want to bamboozle anyone. I know he is very able and confident and a former Chairman of the Committee of Public Accounts but I have queries about sections 3, 4 and 6. I am conscious that I have only one minute remaining so I will just deal with section 4, which provides for a financial cap in respect of moneys that may be paid out of the Central Fund to enable the State comply with its obligations under the SURE guarantee. Can the Minister of State indicate the figure in that regard?