Oireachtas Joint and Select Committees

Wednesday, 28 October 2020

Joint Oireachtas Committee on European Union Affairs

EU Response to Covid-19: Discussion

Photo of Lisa ChambersLisa Chambers (Fianna Fail) | Oireachtas source

I thank both witnesses for their presentations and for coming before the committee. I wish to touch on just three issues. The first is the relaxation of state aid rules, which has been a topic of conversation here over many years in the context of the restrictions state aid places on the Government in supporting industry. For how long do the witnesses see this relaxation being in place, and to what extent does it free up the Government to assist industry? I ask this question with Ireland West Airport Knock in mind. Support for the airport has been challenging to get because of the way in which it is constituted and because of state aid rules. It is in such dire straits financially at the moment and is of such strategic importance to the north west. It is based in County Mayo but services the entire north-west region. If we were ever to lose that connectivity, that link and the airport itself, I think it would be devastating for the region.

My next question concerns Next Generation EU and the €750 billion in additional funds that will be there to assist member states to cope with Covid-19 in addition to the new MFF. It states on the Commission's website that this will be targeted at member states and sectors most affected by Covid-19. Can the witnesses shed some light as to what the criteria will be or how it will be decided how these funds will be allocated and what Ireland as a member state can expect to receive from the fund?

Finally, I have a question about the issue of youth unemployment. Our youth unemployment is currently at over 35% for those under the age of 25. This is partially due to the fact that many young people are employed in those sectors worst hit by Covid-19: hospitality, tourism and retail. Many of these younger people are working on zero-hour contracts, while others are in precarious employment, doing shift work or part-time work or working hours that change week on week, depending on the demands of business. My concern and my fear, which I am sure is replicated in lots of other member states, is that many of those jobs will not return, certainly in the short term. From a European Union perspective, what is happening at that level to address the issue of massive youth unemployment?

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