Tuesday, 29 September 2020

Ceisteanna (270)

Catherine Murphy


270. Deputy Catherine Murphy asked 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]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

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.

Questions Nos. 271 to 273, inclusive, answered with Question No. 33.