Dáil debates

Tuesday, 23 November 2010

European Globalisation Adjustment Fund

 

8:00 am

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

I thank the Ceann Comhairle for selecting this matter and I am pleased the Minister of State, Deputy Haughey, is in the House to deal with it because responsibility for the Dell element of the European Globalisation Adjustment Fund was transferred from the Department of Enterprise, Trade and Employment to the Minister of State's Department a few months ago and he is directly responsible for it.

I raise this matter because I want a definite answer. The Dell redundant workers association was established in December 2009 following the announcement of a huge number of redundancies in Dell and in a number of related companies. Since then it has provided a service for redundant workers as well as lobbying for the fund to be set up and for the application to be submitted on behalf of Government. It has been doing this on a voluntary basis over the past year and has provided a huge service to its approximately 1,700 members. It is recognised as a social partner in the EGF project and is represented on the steering committee.

The Minister of State's predecessor in charge of this fund was the Minister of State, Deputy Calleary. On 1 February 2010, he advised the workers that any expenses legitimately incurred in respect of EGF-related activities would be reimbursed, especially since it was effectively the only organisation actively working EGF-related issues with the redundant workers. At that time, the EGF co-ordination unit had not been opened.

It subsequently submitted a spread sheet in April 2010 but was told the format was not appropriate. It resubmitted its accounts in accordance with Department regulations on 9 June 2010. It made frequent inquiries but it was not until 26 July 2010 that it was informed its accounts were not acceptable in their current format. Again, it got to work and had its accounts audited with the advice of the departmental office. It submitted another application on 22 September 2010, which is more than two months ago, and it still has not had any news about the funding.

This is very urgent because the association is in danger of having to close its office unless it gets this funding quickly. That would be a tragedy for the workers concerned. A large number of them come to see me. They are still trying to access support from the fund, whether for training, community employment schemes, higher education, setting up their own businesses, co-operative groups working to set up enterprises or for advice on social welfare and a variety of other matters. That group of workers has given huge support to all the people concerned. It informs people of their rights. There are still people who do not realise they are allowed to access the fund, in particular people in the other companies. The people in Dell were, by and large, aware of their rights but people in the other companies, whether down stream or up stream companies, did not know about their rights and would not have been able to get the kind of help needed were it not for this group.

It has done trojan work and is entitled to funding for the work it does. I hope the Minister of State will be able to clarify the matter. My colleague, Deputy Penrose, tabled a parliamentary question which was answered last Tuesday. The reply stated that expenditure claims are currently under examination. I hope there will be a successful conclusion to this application.

Photo of Seán HaugheySeán Haughey (Dublin North Central, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy for raising this matter on the Adjournment. As the House may recall, Ireland successfully applied to the EU budgetary authorities under the European Globalisation Adjustment Fund, EGF, for co-financing assistance in support of redundant workers formerly employed at the Dell computer manufacturing plant in Raheen, County Limerick, and at a number of approved ancillary enterprises.

The application for assistance was made by the Irish authorities in June 2009 and was subsequently approved by the European Commission, the Council of Ministers and the European Parliament in December 2009. EU funding transfers under the EGF were made to Ireland in March 2010. The EGF application was for a total of €22.8 million, of which the 65% EU contribution received is €14.8 million. The remaining 35% of total costs is being met by the Government from Exchequer and national training fund sources.

From the point at which the large-scale redundancies in Dell, which so affected the mid western region, were first announced in January 2009 up to the present time, considerable efforts have been, and continue to be, made by the Government, State agencies and educational institutions to support and assist the more than 2,800 workers affected at Dell and at the approved ancillary enterprises. In an overview to date, 2,600 workers have received occupational guidance; almost 370 are availing of VEC training programmes and vocational guidance; almost 320 are utilising the FÁS administered EGF training grant for private training; almost 530 are on FÁS training courses; 180 are on third level courses; almost 100 have been approved by City and County Enterprise Boards for new business start-ups with more than 140 more proposals being assessed; by the end of the year up to 100 will have been placed on internships with companies in the areas of medical devices, logistics, business administration and finance; and more than 60 more are on FÁS community enterprise schemes. All supports are demand led with take-up ultimately dependant on individual choice.

The workers in Dell were not unionised and in September 2009 the Department of Enterprise, Trade and Employment as the Department with policy responsibility for the EGF nationally was contacted by a group of former workers calling themselves the Dell employees representative committee. On request, Department officials subsequently met in October 2009 with a delegation from this group and the general background to the EGF and the application process was explained to them. No other group came forward then or subsequently claiming to represent the Dell redundant workers or cohorts of them. As such the Department engaged with the only group which held itself out as representing the interests of some element of the redundant workforce from Dell and other ancillary enterprises.

Subsequently in December 2009, the group appeared to change its name to the Dell redundant workers association. By request, it met the Minister of State with responsibility for labour affairs, Deputy Calleary, in Limerick on 1 February 2010, as mentioned by Deputy O'Sullivan. The group was also granted representation on the EGF steering committee established by the Department and which met for the first time in April 2010 to advise on the implementation of EGF co-financed supports from the workers perspective.

The group's representation on the EGF steering committee was agreed to ensure the former workers could relay any on the ground concerns to the agencies and bodies involved in providing EGF assisted supports and directly to the EGF co-ordination unit in FÁS established to co-ordinate all such efforts. A dedicated EGF co-ordination unit was established locally by FÁS and put in place in February 2010. This unit was dealing daily with large numbers of redundant Dell workers, apprising them of the services on offer and trouble shooting all relevant EGF related issues. A two day information fair was hosted by FÁS in Raheen in February 2010 at which all relevant agencies and educational institutions showcased the services and supports on offer to the redundant workforce under the EGF.

The work of the EGF co-ordination unit has been pivotal in achieving considerable progress in providing a wide range of guidance, training, educational opportunities and enterprise supports to EGF clients in Limerick and the mid west region. The unit monitors the take-up of supports across all service providers and associated levels of expenditure while the Department of Education and Skills is the managing authority for EGF funding at the national level following the reorganisation of certain Department functions earlier this year, as has been noted by the Deputy.

As the Deputy will be aware all public expenditure, whether nationally or EU-sourced, must be accounted for in detail and be totally transparent. Before any decision can be taken in this matter it is required that any claimed expenditure must be clearly linked to the progression of the aims of the EGF. Again in an audit context there must be transparency on all expenditure in terms of a verifiable and accountable audit trail.

The EGF co-ordination unit in Limerick sought initially to assist the group on an exploratory basis to organise and review the expenses, which its members claimed were its due on a "without prejudice" basis. The EGF co-ordination unit currently continues to seek to elicit sufficient documentary information in order for the Department of Education and Skills as national managing authority for the fund to make a decision on this matter. I thank the Deputy for affording me the opportunity to address this issue and I will continue to keep in touch with her on the matter.