Stephen Donnelly (Wicklow, Independent)
Link to this: Individually | In context

Question 399: To ask the Minister for Education and Skills in view of responsibility for the European Globalisation Fund having been transferred to him from the Department of Jobs, Enterprise and Innovation last year, if the number of redundancies that have to date happened in the banking and financial services sector since 2007 have been of an order that would have justified an application for support from the European Globalisation Fund; if such an application was in fact made; and in view of the scale of such redundancies in prospect in the immediate future, his plans, if any, to ensure that such support is provided for the retaining and vocational reorientation of such workers. [19245/12]

Ciarán Cannon (Galway East, Fine Gael)
Link to this: Individually | In context

In terms of sectorial applications in support of redundant workers under the European Globalisation Adjustment Fund (EGF), a financial contribution from the EGF may be provided to an EU member state where there have been at least 500 redundancies, over a reference period of 9 months in a given NACE 2 (economic activity) sector and where it can be demonstrated that the redundancies have resulted from, for example: A substantial increase of imports into the EU for a given sector A decline of EU market share in a given sector Relocation of an undertaking to a third country Global financial and economic crisis (temporary derogation between 1 May 2009 and 31 December 2011). The Department as the EGF Managing Authority monitors redundancies across all economic sectors including the banking and financial services sectors with a view to making a sustainable EGF application where possible. The first EGF applications in support of redundant workers at Dell, Waterford Crystal and S R Technics were made in 2009, with three more applications in the construction sector being made between June 2010 and February 2011.In assessing the feasibility of making an EGF application in the banking and financial services sectors, it is considered by the Department that the majority of the redundancies have been as a direct result of the global financial and economic crisis. Exploratory work undertaken by the Department, particularly from mid-2010 and continuing into 2011, based on the established collective redundancy monitoring system and following contacts with industry and the Department of Finance, seemed initially to indicate some potential for the making of an application in the banking sector but not in the financial services sector, in line with the required NACE 2 sectoral categorisation required under the EGF.However, upon subsequent detailed investigations, data available on actual confirmed redundancies in the banking and financial services sectors did not suggest to the Department that there were sufficient redundancies such as to sustain an EGF application at that time. Therefore, no application has been made to date in support of redundant workers in either the banking or financial services sectors. While there may be significant redundancies in these sectors in 2012, the European Council decision of 1 December 2011 to oppose the extension of the temporary derogation which allowed applications to be made on the basis of the rationale of the global economic and financial crisis beyond 31 December 2011, has now effectively ruled out the making of EGF applications in support of redundant workers in these sectors. Ireland and many other Member States had sought to retain the derogation but this was ultimately blocked by a sufficient minority of Member States. Developments in this regard will be kept under review by the Department should any change in the prevailing circumstances emerge over time.The Department continues to monitor collective redundancies across all sectors nationally in order to assess whether sustainable EGF applications can be made in those cases where all relevant EGF regulatory criteria are met.