Seanad debates

Thursday, 28 October 2010

4:00 pm

Photo of Brendan RyanBrendan Ryan (Labour)

I also welcome the Tánaiste and the approval by the budget committee of the European Parliament of €7.4 million from the European Union Globalisation Adjustment Fund to 850 former workers at SR Technics. Nearly 1,200 highly skilled workers lost their jobs in 2008 and have been waiting since for assistance in getting back to work. I do, however, have serious concerns. The Government was slow off the mark in applying for assistance from the fund. It waited until October 2009 to make its initial application and when additional information was sought by the European Commission, it waited until May this year to send it. As a result, nearly two years have passed since the SRT employees lost their jobs. Why did it take so long for the initial application to be sent and why was all of the information required not included? It is not as if it was the Government's first experience of making such an application. In December 2009 Proinsias De Rossa contacted the Commission which informed him it was still awaiting additional information from the Government. Why did it take until May this year for this information to be sent?

I also have grave concerns as to whether the former workers will be able to benefit in the fullest possible way from the use of the funds before the implementation period expires. After making inquires to the Department of Education and Skills yesterday, I was informed that the implementation period in which the services funded under the SRT fund could be used was from 29 October 2009 until 9 October 2011. Any moneys not spent within this period will be sent back to the European Commission.

A former SRT worker from my local area is attending All Hallows College on Grace Park Road, which is part of DCU. He is taking a BA degree course in adult learning. DIT Bolton Street cancelled a similar course owing to the unavailability of the EU globalisation fund money. All Hallows College, however, decided to allow the students to take the first year of the course on the basis that the money would follow. About 60 other former SRT workers are in the same predicament. They are doing a four-year course but will not be allowed to continue after this year unless the EU money becomes available. They are very angry that no application was made until October 2009, despite the fact that they were laid off in April 2009.

The Minister should have known from her experience with Dell that the application should have been made straightaway. The former workers fear that any unused money will have to be returned to the European Union in November 2011 and believe the money should be used to pay for their entire four-year course until 2013. It should be noted that on top of the €7.4 million from the EU fund, another €4.1 million will be provided by the State. It goes without saying that if part of the EU fund must be returned, part of the €4.1 million will also not be spent. One could be forgiven for thinking that the prospect of saving at least some of the money may have been a key motivator for the Government in delaying the application process. It would be absolutely devastating for former SRT employees if any part of the fund was returned because of the delays.

The final stage of the process is for the funding to be approved by the European Parliament and the vote has been scheduled for 11 November. This will not present a problem. However, if the Government is really serious about helping former SRT employees, it is high time it proved it. It needs to establish the appropriate structures immediately to make sure the funds will be utilised in full within what is left of the implementation period. Because time is not on our side, it must liaise directly with former SRT workers immediately to address their employment needs. An initial briefing took place last week, but reports have indicated that it was unsatisfactory.

The funds are of the utmost importance, as they will provide funding for career guidance services, training, third level education and the development of business skills, but the Government must act quickly. Workers at SRT have been treated badly by the State and have waited far too long for action. The Government must act now to put the essential processes in place. The lessons from past mistakes with Dell and Waterford Crystal must be learned; no money must be returned. I am reliably informed that as of 10 June, only €2 million out of a total of €22.8 million for Dell workers had been spent. Obviously the rules of the scheme must be adhered to, but there must be as much flexibility as possible to allow the redundant workers achieve their goals. As the Tánaiste will be aware, many are in their 50s and every week is critical.

A report compiled by MEPs who visited Dell made the following findings. The Government was too late in getting measures started for workers. Officials admitted to finding it difficult even to identify eligible workers. There was poor communication with workers which led to mistrust and misunderstandings. Workers were confronted with measures they did not need or want and felt left alone. There were concerns over the level of administration being put in the way of workers. The Irish system was incapable of responding flexibly to the fund. The European Commission needs to follow this up more closely for the workers' benefit. We must not repeat the mistakes and must learn from them.

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