Emmet Stagg (Kildare North, Labour)
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Question 187: To ask the Minister for Enterprise, Trade and Employment if he will report on the implications for his Department of the decision of the European Court of Justice to repay €15 million to the EU Commission due to alleged irregularities surrounding claims made for European Social Fund funding; and if he will make a statement on the matter. [25441/05]

Micheál Martin (Cork South Central, Fianna Fail)
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Arising from audits by the European Commission in 2000, the Commission took a decision in February 2003 to reduce ESF aid to Ireland by €15.614 million in respect of three operational programmes from the 1994 to 1999 period, that is, the human resources development operational programme, the tourism operational programme and the industrial development operational programme. The sum involved represents less than 1% of the amount allocated to these programmes for the period.

While the Commission accepted that all expenditure incurred under the programmes in question was eligible and no allegation of fraud was made, the Commission decided that the particular methodologies used in submitting the claims in question resulted in an over-claim of ESF by Ireland. The European Court of Justice has now dismissed Ireland's application to overturn the Commission's decision and has upheld the Commission's decision.

The Commission had already withheld the total €15.614 million from Ireland by reducing the final ESF payments for the three programmes concerned. The withheld funding was allocated between a number of Departments and agencies, including one non-governmental organisation. The issue of the implications of the decision for departmental budgets is currently under consideration.