The Minister for Finance, Mr. Michael Noonan T.D. has published today (8th May 2012) the European Stability Mechanism Bill 2012. The Government is publishing this Bill today as part of the commitment to ensure that the Irish people are fully informed in casting their votes on the Stability Treaty. This comprehensive information campaign has also seen the full Treaty and associated guide sent to every household in the country.
Commenting on the publication, Minister Noonan stated:
“The European Stability Mechanism Bill 2012, which is published today on the Department of Finance website, outlines the legislation that underpins Ireland’s ratification of the European Stability Mechanism.
The Government is actively campaigning for a Yes vote in the Stability Treaty on the 31st of May to ensure stability, confidence and security and access to the ESM is a key element of the Referendum on the Stability Treaty. A Yes Vote to the Stability Treaty guarantees Ireland’s ability to access the ESM. In the absence of market based financing, having the ability to access the ESM will be essential in order to, for example, fund our public services including pensions, social welfare, education and health services in the future.”
Minister Noonan set out a number of the key facts in relation to the ESM:
“The Establishment of the ESM will be of great importance to Ireland as an insurance policy and safety net.
The ESM will come into force when the ESM treaty has been ratified by euro Member States representing 90% of the fund capital commitment. Ireland cannot veto the ESM as Ireland represents 1.59% of the capital.
Ireland’s contribution as set out in the ESM treaty published on 2nd of February 2012 will be 1.59% of the total €80 billion, amounting to a total of €1.27 billion over 3 years. This contribution will be made in five equal tranches commencing in July and October 2012.
This capital contribution to the fund is fully factored into the latest budgetary forecasts as set out in the Stability Programme Update published by Department of Finance on the 27th of April and the contribution will not impact on our General Government Deficit target of 8.6% in 2012.”
Minister Noonan concluded by stating:
“Having the ability to access to the ESM is essential to Ireland’s return to the markets. It will serve as a backstop or in a worst case scenario, ESM funds will be available to provide essential public services, including pensions, social welfare, education and health services in the future.
A Yes Vote is a vote for a safer and more secure future for Ireland and our public services.”
8th May 2012
Ends
Notes for Editors
Link to 30th of March Statement
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/129381.pdf
Link to ESM treaty press release with link to treaty
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/128049.pdf
Link to Stability Programme Update
http://www.finance.gov.ie/documents/publications/other/spuapr2012.pdf
Heads of the Bill
· Section 1 provides the definitions to the legislation.
· Section 2 provides the Minister for Finance with the authority to make payments to the ESM to cover Ireland’s contribution to our share of the authorized capital stock of the ESM in accordance with the Treaty.
· Section 3 provides for payments to the ESM in respect of Ireland’s contribution to the ESM’s authorised capital stock to be paid out of the Central Fund. This provision caps payment at eleven billion, one hundred and fourth five million, four hundred thousand four hundred euro being Ireland’s share of the authorised capital stock as set out in Annex II of the ESM Treaty.
· Section 4 provides that any monies received from the ESM be it in the form of dividends or otherwise be paid into the Exchequer.
· Section 5 provides that the ESM be immune from legal proceedings and enjoy inviolability in respect of official papers and documents.
· Section 6 provides that the ESM shall be exempt from the requirement to be authorised or regulated by the Central Bank of Ireland.
· Section 7 provides that the ESM be exempt from taxation; income tax, corporation tax, capital gains tax and any other taxation provided for by Article 36 of the ESM Treaty.
Section 8 provides that the Minister for Finance shall arrange for six monthly reports on payments made to the ESM by Ireland and any monies received by Ireland from the ESM to be laid before Dáil Éireann.
Section 9 provides that for expenses incurred by the Minister for Finance in the administration of this legislation shall be paid out of monies provided by the Oireachtas.
· Section 10 is a standard section defining the short title of the Act.