Oireachtas Joint and Select Committees

Wednesday, 23 June 2021

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Reactivation of Economy Following Pandemic Restrictions: Discussion (Resumed)

Ms Anna Marie Delaney:

I will comment on just transition. I thank Deputy Bruton for his question and for his support previously at the commencement of the regional transition team process and its activation. On the just transition process itself, progress has been slow. That would be the perception of progress, both locally and throughout the region. However, there have been significant activities around the just transition process. We got engagement with the start team at EU level. It engaged with communities locally. There have been a number of recommendations and an action plan going forward to address some of those communities that are most impacted. With regard to the just transition fund, it supports projects across three specific priority areas, namely, enterprise and employment; training and upskilling; and community transitioning. There are Strand 1 and Strand 2 projects. Strand 1 is for those under €100,000. Of those projects, 16 are currently in contract. They are delivering. The total value of those is €1.2 million. As reported under those 16 project plans, they will create 28 direct jobs and 175 indirect jobs.

Provisional offers were then made to 47 Strand 2 projects, which are those up to €1 million. All have undergone state aid assessment, etc. It is a significant verification process. There many hurdles for those projects to get over in that verification process. However, at this stage, approximately 30% of those applications are in contract. Work is ongoing with Department of Environment, Climate and Communications to get the rest of them over the line. They are at varying stages of that process. Some €27 million was committed overall. We do not know if all that will be drawn down. We are seeking assurances on that and on what will happen to funds that are not drawn down.

The EU territorial plan is being prepared by the Department for submission. That will go to Brussels for ratification. There is €77 million in that just transition fund allocated to Ireland. With match funding and national funding, I think that brings it up €150 million. We ask that that will go to those communities that are most impacted. We look forward to working with the Department further on that.

We are looking at the administration of funds in Offaly. We are working with the Department of Environment, Climate and Communications to see if Offaly County Council can administer those funds to enable them to be rolled-out to those communities more quickly. It has been approximately 12 months since applications were made. It has been six months since the announcement of the successful projects. This is a obviously significant issue for communities that have made applications, particularly in getting their match funding. They have not been able to do local fundraising due to Covid-19. There is, therefore, a match funding issue for a number of those. We have been asking our Deputies and MEPs to look at that. We have had a couple of meetings with MEPs in relation to the NUTS 3 region and the EU territorial plan. These are progressing, but progress is slow.

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