Catherine Murphy (Kildare North, Social Democrats)
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269. To ask the Minister for Finance the estimated cost of extending the employment wage subsidy scheme until 31 March 2021. [26336/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that, as of 25 September 2020, there were 36,746 employers registered for the Employment Wage Subsidy Scheme (EWSS) which is considered a strong level of participation so far and, notably, over 82% of the employers availing of the TWSS when it finished at the end of August.

As set out in the July Stimulus Package, it is expected that the EWSS will support around 350,000 jobs into the beginning of 2021. 

On this basis, it is estimated that the EWSS will cost €2.25 billion (€1.35 billion in 2020 inclusive of seasonal workers and €0.9 billion in 2021). 

However, the scheme is demand led and a significant surge in claims may require a policy review and re-evaluation of the terms of the scheme.  These cost predictions are therefore subject to review and for every additional 50,000 qualifying employments, the cost increases by €0.25 billion.

The operation of the EWSS and its effectiveness will be kept under close review over the coming months.  In fact, the relevant legislation obliges me to monitor and superintend the administration of the scheme and empowers me to make certain adjustments across the whole scheme where I determine that these are necessary.

Catherine Murphy (Kildare North, Social Democrats)
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270. To ask the Minister for Finance if he has finalised and submitted an application to the European Commission in order to access the support to mitigate unemployment risks in an emergency, SURE, initiative; if it is still planned to use funds granted from the scheme solely for the temporary wage subsidy scheme; and if he will make a statement on the matter. [26338/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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As outlined to Deputy Murphy in PQ 22738/20 the SURE instrument is intended primarily to support Member States with efforts to protect workers and jobs (such as short-term work schemes), and also support some health-related measures. The European Commission will borrow on financial markets to finance loans to Member States, allowing Member States benefit from the EU’s strong credit rating (AAA) and low borrowing costs.

Following detailed discussion with the Commission it was determined that Ireland would be eligible to recoup the substantial majority of expenditure already accrued under the Temporary Wage Subsidy Scheme (TWSS) from SURE. The TWSS has been the main scheme implemented in Ireland to date that meets the application criteria for this European response mechanism.

The Commission intends going to the market in final quarter of 2020 to start procuring the funding for the first tranche. This is expected to take a number of months and is expected to be paid to Member States over coming months, meaning that it could be the early/mid part of 2021 before the full draw-down is paid to all requesting Member States.

A decision to make a formal application to the SURE loan scheme will be taken by Government shortly and the necessary information is being prepared at present. The Commission are aware of our intention to submit an application for funding.