Mr. Seán Ó Foghlú:

I thank the Chairman for the opportunity to make this statement concerning the examination of three areas of interest to the committee. As requested, I have forwarded some advance briefing in respect of each of these issues and I will therefore keep this opening statement quite short. I will deal with each of the issues in turn.

The European Globalisation Adjustment Fund, EGF, is an EU fund that provides co-financing for approved programmes of guidance, training, education and enterprise supports for workers made redundant as a result of the adverse impacts of globalisation. National sources must meet between 35% and 50% of total costs of EGF programmes. To date since 2009, Ireland has had seven EGF programmes approved in support of approximately 13,100 redundant workers. One programme is still operational, namely, that in support of almost 600 workers made redundant at the TalkTalk call centre facility in Waterford and at a number of ancillary enterprises. Since 2009, the Irish authorities, overseen by the EGF managing authority in the Department of Education and Skills, have provided more than 21,330 individual interventions to some 9,355 beneficiaries on the six completed programmes. To date on the TalkTalk programme, almost 1,760 interventions have been provided to 390 beneficiaries. Approximately €59 million in funding has been expended on the completed Irish EGF programmes with €5.4 million available for the TalkTalk programme, which will finish in February 2014.

A review of the EGF process in Ireland was undertaken by the Department in 2012 to assess the fund's strengths and weaknesses. This involved a public consultation process. Irish EGF programmes have also been audited by the European Commission and the European Court of Auditors and examined by the Comptroller and Auditor General. Arising from these various examinations and the review of the EGF conducted on Irish programmes, greater emphasis is now being placed by the EGF managing authority on the improved monitoring and evaluation of outcomes for EGF beneficiaries. This approach has been assisted by improved data flows from the Department of Social Protection and the Office of the Revenue Commissioners and by the undertaking of a series of longitudinal surveys for the managing authority both during the actual programme implementation period and up to 12 months after programme completion. These analyses indicate increasing levels of employment and corresponding decreases in unemployment for the cohorts involved on all relevant EGF programmes.

The Irish Presidency of the European Council achieved the agreement of a general approach on a new EGF regulation for the next 2014 to 2020 funding round at the Employment, Social Policy, Health and Consumer Affairs, EPSCO, Council in Luxembourg on 20 June 2013. The agreement allows the next Presidency to enter into trilogue discussions with the European Parliament with a view to implementing a new and significantly broadened EGF by 1 January 2014. All institutional stakeholders view the fund as a concrete and practical instrument of solidarity with the tens of thousands of workers being made redundant through changing world trade patterns.

On the 2012 FÁS financial statements, as members will be aware, FÁS has undergone significant organisational change over the past few years. On 1 May 2010, responsibility for FÁS and all its functions transferred to the Department of Education and Skills. Responsibility for budget and policy in respect of employment services and community employment programmes transferred to the Department of Social Protection with effect from 1 January 2011. FÁS was therefore funded by both Departments for the financial year 2011. FÁS employment services and community employment programmes, including approximately 700 staff, subsequently were transferred to the Department of Social Protection on 1 January 2012.

The financial statements and annual report for 2012 were laid before both Houses of the Oireachtas in June 2013 in keeping with the code of practice for the governance of State bodies. In 2012, FÁS received €424 million from the Department of Education and Skills and approximately €700,000 from other Departments. FÁS was also in receipt of other income of €3 million from training and other activities. The Estimate for FÁS for 2013 from this Department amounts to €419 million.

Staff costs amounted to €63 million. The FÁS staff count, as at 31 December 2012, was 1,096 full-time equivalents.

FÁS delivers an extensive range of programmes to those seeking and changing employment, redundant persons and school leavers as well as marginalised and disadvantaged groups. Over 65,000 persons completed training programmes in 2012. This included over 30,000 persons, both unemployed and employed, who participated in evening courses and online programmes.

The number of those entering apprenticeship during 2012 was 1,434 which was 10% higher than the 2011 level. In 2012, the total number of apprentices across all phases of training was 8,862.

Following the enactment of the Further Education and Training Bill 2013, it is expected that FÁS will cease to exist later in the year. It will be replaced by the new further education and training authority, SOLAS. As part of this process, FÁS training courses will be transferred on a gradual basis to the newly-formed Education and Training Boards.

On 1 May 2010, responsibility for the National Training Fund was transferred from the Minister for Jobs, Enterprise and Innovation to the Minister for Education and Skills. Funding from the National Training Fund is allocated by the Minister for Education and Skills with the consent of the Minister for Public Expenditure and Reform, in accordance with the provisions of the National Training Fund Act 2000.

The fund provides for expenditure on training for those seeking employment, training for persons in employment, literacy and numeracy training; early school leavers; and persons with disabilities. It also provides funding for the identification of existing and future skills needs for the economy. While the fund does not form part of the Vote of the Department, expenditure is allocated as part of the Estimates process.

The fund is mainly funded by a levy on employers of 0.7% of reckonable earnings in respect of employees in class A and class H employments, which represents 75% of all insured employees. This was reduced, in 2011, to 0.35% for low-earning employees as part of the Government's jobs initiative. It also receives funding from other sources such as the European Social Fund and the European Globalisation Adjustment Fund. The total income in 2011 was €400 million and expenditure amounted to €326 million. The surplus in the fund at the end of 2011 amounted to €178 million and this will reduce to an estimated €117 million at the end of 2013 due to an anticipated reduction in receipts.

On an annual basis, FÁS receives approximately 77% of the expenditure from the fund. In recent years, a number of innovative projects have been funded through the National Training Fund's contribution to the Government's Pathways to Work and Action Plan for Jobs initiatives. Funding for these in 2013 include €22 million for Springboard, €20 million for Momentum and €5 million for ICT skills conversion course.

Expenditure from the fund is subject to public service accounting rules and is audited by the Comptroller and Auditor General. The 2011 accounts were audited and certified by the Comptroller and Auditor General.

Together with officials from the Department and our colleagues in FÁS, I will be happy to deal with any questions arising from the issues outlined.