Carol Nolan (Offaly, Sinn Fein)
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181. To ask the Minister for Education and Skills why his Department had to refund €19.8 million under the programme for employability, inclusion and learning; the impact of this on the delivery of the programme; and if he will make a statement on the matter. [16926/16]

Richard Bruton (Dublin Bay North, Fine Gael)
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The EU co-financed Youth Employment Initiative (YEI), which aims to tackle youth unemployment and implement the Youth Guarantee, is integrated into European Social Fund programming and is being delivered in Ireland as a dedicated priority axis within the ESF Programme for Education, Inclusion and Learning (PEIL) 2014-2020. The specific YEI funding allocation for Ireland of €68m is matched by equal amounts from our ESF allocation and from the Exchequer, giving an overall allocation of €204m. The rules governing the ESF provide for initial pre-financing of EU support at 1% (or 1.5% for Member States under financial assistance) of the full programme support, payable for each year from 2014 to 2016. However, in order to mobilise faster YEI actions on the ground, the initial pre-financing of the YEI EU support was exceptionally increased to 30% in 2015. Accordingly Ireland received additional YEI pre-financing of €19.8m. The Regulations providing for this exceptional increase also specified that where a Member State did not submit an interim payment application by 23 May 2016 for at least 50% of the additional pre-financing amount, that the Member State must reimburse the Commission the total YEI pre-financing contribution. As work on the designation of the relevant ESF authorities, including the provision of a national computerised accounting and information system for EU funds to meet the 2014-2020 functionality requirements is continuing, Ireland did not comply with the requirement to submit an interim claim by the due date. In accordance with the relevant Regulations, the €19.8m additional pre-financing received and currently held in a Suspense Account, is to be reimbursed to the Commission. My Department is liaising with the Commission in this regard. However, it should be noted that the reimbursement of this pre-financing will not result in any loss of EU monies to the Exchequer, as the full YEI allocation of €68m to Ireland will still be available for drawdown before year-end 2018, and it is expected that this funding will be fully drawn down. Furthermore, as the activities concerned are fully funded up-front by the Exchequer there is no resulting reduction in the funding available to those activities.