Seán Haughey (Dublin North Central, Fianna Fail)

In Ireland, selected FÁS activities are co-financed by the European Social Fund and the Exchequer under the 2007-2013 Human Capital Investment Operational Programme, which has a 41% average ESF aid rate. This operational programme has an overall allocation of €375 million in European Social Fund moneys with expenditure from 1 January 2007 until 31 December 2015 being eligible for ESF assistance. The final payment application for this programme is due to the European Commission by 31 March 2017.

FÁS has been allocated €211 million in European Social Fund moneys under this operational programme. This allocation has been committed to FÁS programmes that deliver skills training for the unemployed and job seekers and to in-company training to the amounts of €201 million and €10 million, respectively.

FÁS submitted its first claim under this operational programme in October 2008 for a €23 million European Social Fund, ESF, drawdown in respect of training for the unemployed and job seekers programmes. In 2009, the European Commission undertook an audit of this claim and raised issues about it. As a result, in 2009 it was decided to postpone claiming European Social Funds from FÁS expenditure until these audit issues were satisfactorily addressed and the necessary recommendations implemented. To date, Ireland has met the deadlines for the full drawdown of available ESF moneys. It is intended that alternative FÁS spending on skills training for the unemployed will be substituted for the amount of €165,000 in the next claim and, therefore, there will be no loss to the Exchequer over the programme period.

After FÁS addressed the issues raised, the position was presented to the Commission for its opinion. The Commission then completed a follow-up audit in March 2010 on these re-presented costs. The Commission released its draft audit report on 16 June to which my Department responded on 24 August. After review, analysis and further consultation, the Commission will issue a final position in connection with the audit. Therefore, it is hoped that this process will allow for the submission of a FÁS claim and the related European Social Fund moneys to be drawn down in the near future.

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