Oireachtas Joint and Select Committees

Tuesday, 13 November 2012

Joint Oireachtas Committee on European Union Affairs

Forthcoming General Affairs Council: Discussion

3:40 pm

Photo of Kathryn ReillyKathryn Reilly (Sinn Fein) | Oireachtas source

I join with Senator Leyden in congratulating the Tánaiste on securing the seat. I want to refer to the budget for the multi-annual framework. Obviously the negotiating box by the Cypriot Presidency last week did not garner enough support. I have already raised the issue of macro-economic conditionality of Structural Funds with the Tánaiste or the Minister of State at the Department of Foreign Affairs, Deputy Creighton. I am disappointed that the matter is still being discussed. It is a dangerous concept. It is unfair that good social projects in, for example, disadvantaged areas along the Border or in a Border county, could see funding or workers' pay suspended due to the wider economic problems here. I know that the EU Parliament and the Government oppose conditionality. How does the Government propose to work with others to remove conditionality?

There seems to have been little progress made on our own resources and there has not been agreement so far. The Commission, with the support of enough countries, seems intent to push ahead with the financial transaction tax. Does the Tánaiste foresee a situation where the contribution of one state is calculated using one method, such as the financial transaction tax, while another country, like Ireland, outside of the financial transaction tax, will have its contribution based on the current VAT model? What is the preferred method of own resources or contribution calculation for Ireland?

I probably sound like a broken record because I have talked so much about youth unemployment and the Irish Presidency at meetings of the committee. What about funding, part funding or a youth guarantee? The Minister for Social Protection has said that she will advance the matter during the Irish Presidency. Where does the Tánaiste think funding will be found? Figures sourced from the International Labour Organization show that the amount of Ireland's entire ESF money would need to be used to deal with youth employment. Other member states have linked the issue to a financial transaction tax that Ireland would not be part of. Does the Tánaiste see a youth guarantee working on an EU scale? Where will the funding be found? Has thought been given to creating a specific funding instrument? In broader terms, beyond following the Commission's plan in December, will the Government prioritise the fight against youth unemployment during its Presidency?

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