Written answers

Tuesday, 27 January 2009

Department of Enterprise, Trade and Employment

EU Funding

9:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 214: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she is preparing a plan for submission to the European Commission for funding under the European Globalisation Adjustment Fund to provide assistance to people affected by redundancies, past and present, from a company (details supplied); and if she will make a statement on the matter. [2242/09]

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 215: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the details of changes to the scope of the European Globalisation Adjustment Fund being proposed by the European Commission; her views on those changes; and if she will make a statement on the matter. [2243/09]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 221: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will apply for funding in respect of Limerick from the European Globalisation Fund; and if she will make a statement on the matter. [2295/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 214, 215 and 221 together.

Funding is available from the European Globalisation Fund (EGF) for workers in EU Member States made redundant as a result of globalisation and changing global trade patterns. Strict eligibility criteria apply such as the formal individual notification of redundancy to at least 1,000 workers within a reference period of 4 months for a given enterprise and its suppliers, or within a reference period of 9 months for a given industrial sector. Redundancies which have occurred prior to the reference period are not deemed eligible. Member States then have a time limit of 10 weeks from the date all EGF conditions are met to submit an application for funding from the EGF.

With regard to the 1,900 redundancies recently announced by DELL at its Limerick plant, I understand that no formal notification of individual redundancies has yet issued to employees. As such, no application for assistance from the EGF can be advanced at this time. However, when this condition and the other relevant eligibility criteria are met, it is my intention to submit an application for assistance.

Notwithstanding the position in relation to the making and timing of any application to the European Commission for EGF support, FÁS has put in place a dedicated team to assist workers at DELL in terms of individual skills assessment, occupational guidance and advice, job search assistance and the provision of training. FÁS is working collaboratively with other statutory agencies and educational institutions in the Mid West Region in this regard. Furthermore, a Task Force is being put in place to assess, and make recommendations to my Department on, the most appropriate responses to offset and compensate for industrial job losses in the region arising from the proposed job losses at DELL.

In relation to the company referred to by Deputy Deasy, I understand that no formal notification of redundancies has issued to its employees to date and therefore, again, no application for assistance from the EGF can be processed at this time. In addition, the 1,000 redundancy threshold and other relevant intervention criteria must also be met before the making of an application can be contemplated.

On 16th December 2008, the European Commission tabled proposals to amend EGF intervention criteria in order to increase its capacity as an effective response and support instrument in the context of the current global economic and financial situation. The proposals include a halving of the trigger number of redundancies and other new intervention criteria and procedural amendments. Discussions between the European Commission and Member States on these proposals commenced earlier this month and are ongoing. As such, their final outcome, which will not be known until later this year, cannot be anticipated at this stage.

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