Written answers

Wednesday, 7 December 2011

Department of Education and Skills

Employment Support Services

10:00 pm

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 23: To ask the Minister for Education and Skills the funding committed by the EU and Irish agencies relative to the European globalisation fund in respect of initiatives to be undertaken to support former workers from Dell, Waterford Crystal and SR Technics; the amount drawn down in each case; the amount of EU funding that was lost to the State and the employers involved; and if he will make a statement on the matter. [39134/11]

Photo of Ciarán CannonCiarán Cannon (Galway East, Fine Gael)
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The total funding allocations for the following EGF programmes in support of eligible redundant workers in Ireland were as follows: Dell: €22.8m (of which the EGF maximum 65% contribution is €14.8m and the national co-funded element is almost €8.0m) Waterford Crystal: €3.96m (EGF €2.57m, national €1.39m) SR Technics: €11.46m (EGF €7.45m, national €4.01m).

In addition to the main companies named, the ancillary enterprises comprehended by these programmes were: Dell: Banta Global Turnkey, Irish Express Cargo, Sercom, RPS Engineering, Sodexho, Novostrat, Rehablogistics and Cube Printing Waterford Crystal: Thomas Fennell Engineering Services, RPS Engineering and Abbey Electric SR Technics: none.

An EGF Final Report and Statement of Eligible Expenditure are required to be submitted to the European Commission by the Irish authorities within 6 months of the end of the EGF implementation period. The first such report is for the Dell EGF programme and is due on 28 December 2011. It is only at that stage that final certified expenditure is notified to the European Commission and any unused funds identified where applicable.

The certification of final expenditure is ongoing and in this context, a number of claims from service providers are currently awaited or are being processed. As no EGF programme final report has yet been submitted to the EU, and no financial expenditure statements have yet been completed, any final EGF funding underspend has not yet been identified for these programmes. To date, on the basis of claims processed, my Department has paid out the following amounts on the three EGF programmes: Dell: €6.46m Waterford Crystal: €1.61m SR Technics: €1.30m.

Whilst the Dell programme expenditure is expected to double, it is clear at this stage that final expenditure will be significantly less than was originally expected could be used on that programme. I have already begun an in-depth review of the way EGF programmes were developed and managed during the period of the previous Government, particularly in light of our experience with the three companies above, in order to inform future programmes. The review is well advanced and consultations with relevant parties are expected shortly. The findings will assist us in preparing new applications for EGF supports.

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